Everything you need to know about enhanced critical illness payments
In reading this and the linked articles you will understand:
- The circumstances in which providers make enhanced claim payments.
- How providers differ in their approaches for a variety of enhanced payment conditions.
- The limits, exclusions or other restrictions that can apply and when.
Enhanced payments have been available within some critical illness plans for a number of years. They will generally provide an additional or increased payment if the life assured or their child suffers from one of the defined critical illnesses where the circumstances around the diagnosis or treatment have a bigger impact on the clients’ life than might ordinarily be expected. Here we take a look at everything you need to know about how providers support clients in such circumstances.
A serious accident can have a massive impact on a client’s life where they face a long stay in hospital or being permanently disabled due to the injuries they have sustained. This can have huge financial implications in the short and longer term, not only for the client but also their families. So, if insurers can step in and provide a bit extra, this can make clients’ lives a little bit easier.
Quality of life
Quality of life is something that separates a living meaningful life from simply existing. This is why living with a critical-illness that impairs quality of life over time can be so devastating for clients and their families. It can change what clients are able to do for themselves and for those who are ordinarily active and independent, that can be hard to take. Several insurers make an additional payment to clients based on the impact certain conditions have on their quality of life.
Claims for Younger clients
While it is more likely that a client will suffer from a critical illness at an older age than when they are young, some people are, unfortunately, diagnosed with debilitating conditions early in their lives. The impact that this will have on their life expectancy and quality of life will differ from condition to condition and the severity of the diagnosis but the repercussions are likely to be significant, as will the effect on their finances. a number of insurers offer additional financial support for the more debilitating conditions if diagnosed at a young age.
Obtaining medical care abroad
The NHS is generally seen as one of the best healthcare systems in the world. Whilst the range of treatments available in the UK are vast, how would your clients cope if more effective or even lifesaving treatment was only available elsewhere in the world? Obtaining any medical treatment elsewhere in the world is expensive. A recent report from the Journal of the American Medical Association showed that the average cost of a heart bypass operation was $75,345 in the U.S, $15,742 in the Netherlands and $36,509 in Switzerland. A small number of providers offer support if a client is seriously ill and better treatment is only available overseas.
Overseas treatment for a child
When a child is suffering from a critical illness, the best treatment or even pioneering surgery that could save their life may only available abroad. However, as we all know, medical costs in other countries are so expensive. overseas treatment cover is available through critical-illness insurance from some providers
Watch out for future “Everything you need to know” pieces where each week we will cover a different topic and provide you with the information you need to know to discuss the topics with your clients.
Things to reflect on for CPD:
- What are the top 5 things you have learnt from this collection of articles? Pick one from each.
- How will your learning help in your provider recommendations?
- One of the articles above is about claims for younger clients. Critical illness cover should be an important consideration for the young but traditional trigger events like house purchase are happening later in life. Read this related Protection Guru article on how providers help introduce critical illness cover to young people. Discuss with your peers and identify your top three learning points and opportunities.