Critical illness cover is based on a list of illnesses
and conditions for which insurance payouts will be made.
If you have a listed condition, the chances of beating it
or living more than a few months used to be very low.
So, on a conventional cover if you have an insured
illness and a
claim has been paid, then insurers will no longer offer
But modern medicine means that many more conditions are
beatable, and others can go into remission for years, while even with
some diseases, people can live for many years.
An increasing number of insurers recognise that some
conditions, such as early stage cancers
where the removal of a breast is required, warrant some payout instead of nothing at all.
So one in two policies now automatically includes
where the payout is directly linked to the severity of
If you have a claim paid, and live for another ten years
condition worsens or if a new illness is diagnosed, not
cover continue but also further claims can be made.
The severity concept is literally moving the goalposts.
important question is changing from 'will my claim be
paid?' to 'how much will I be paid?'.
It is now an important part of the cover and you should
check if the
insurer that perhaps looks good value, does so because another
insurer at a slightly higher price also includes severity
Types of cover: Index