How Does Serious Illness Cover Work?

I knew a fella who got a serious illness and the insurer wouldn’t pay out.

Ah here, you’ve to be half dead before it’ll pay out.

It’s all a scam, I tells ya, A SCAM!!

You might be thinking along these lines too. I don’t blame you, serious illness cover gets a rough ride.

But stay with me and I’ll explain how it works.

Who knows, your view might change.

How Serious Illness Cover Policies Work

If you tell the truth on your application form and you contract an illness as defined by your policy then your serious illness cover will pay out.

But…if you “forget” to mention something relevant to the insurer, or if your illness is not actually defined in your policy, then your policy won’t pay out.

It’s that simple.

A Successful Serious Illness Cover Claim

Recently, a client of ours (let’s call him Sean) had a successful claim paid out for prostate cancer.

But when he called us to make his claim, he called us more in hope than expectation.

For some reason, he had it in his head that his claim wouldn’t pay out.

For us, the main worry at claim stage is non disclosure by the client. Fortunately we knew that Sean guy was an honest fella so we had little to worry about….but you never know.

The second thing to worry about is whether Sean’s diagnosis fitted the definition of the illness on his policy.

Sean was diagnosed with level 6 prostate cancer, the policy definition stated that a claim would be paid for prostate cancer “above level 6”.

Would the insurance company try and weasel it’s way out by saying “above level 6” means level 7 + or would it allow the claim?

The good news for everyone was that the insurance company paid the serious illness cover claim of €45,000.

It was part of a mortgage protection policy so the benefits were paid directly to the lender – half of his mortgage was cleared.

The cancer has forced Sean to take time off work so the reduction in payments has really helped him cope financially so he can focus on getting better without money worries.

So can you trust serious illness cover to pay out?

Yes, if you’re truthful on the form and your illness is covered by your policy.

Just ask Sean.

Bonus Reading – Serious Illness Cover claims statistics

If you’re considering serious illness cover, take advice from an independent advisor who deals with all the life insurance companies. There are major differences between the policies on offer at the different insurance companies.

Don’t end up buying an inferior policy becuase you didn’t take advice. At claim stage you don’t want to be left disappointed that a policy from another insurer would have paid out on the same illness.

If you don’t have an advisor, I’d be glad to help. Simply complete the short form below and I’ll be in touch with you.

Nick McGowan Serious Illness Cover