Critical Illness Cover - What Are the Claim Statistics?

the average claim was £98,000
the average duration of a policy being in place prior to a claim was 33 months

The majority of claims were for (both sexes):

Cancer, 58%
Heart attack, 11%
Stroke, 6%

Interestingly, the figures for each sex are:

Male

Cancer, 49%
Heart attack, 18%
Stroke, 6%

Female

Cancer, 74%
Heart attack, 1%
Stroke, 7%

Some specific claims were:

Female, benign brain tumour, age 32 at claim, £220,000 paid
Male, skin cancer, age 52 at claim, £24,617 paid
Female, breast cancer, age 44 at claim, £1,000,000 paid

Source: BUPA September 2009

LV= (Liverpool Victoria)

In 2008, they paid out almost 8.5m in claims. 100% of valid claims were paid out, whilst 87% of all the claims received were paid. The reasons why some claims were not successful were non-disclosure, whcih means the policyholder did not provide accurate information at the time of application (0.7%) and not meeting the claim definition (12.6%).

Their claim causes were:

Cancer, 57%
Heart attack, 15%
Stroke, 5%

And some specific claims were:

Male, gastric cancer, age 43 at claim, £200,000 paid
Female, multiple sclerosis, age 42 at claim, £150,000 paid

Source: LV= March 2009

Bright Grey

In 2009, they paid out £11m in claims, with an average claim amount of £78,000. Interestingly, 47% of claims were for those in the age 40 and below bracket.

In line with the other providers, their main claims were for:

Cancer, 65%
Heart attack, 11%
MS, 7%

Source: Bright Grey February 2010

The Financial Tips Bottom Line

As well as assessing your chosen company for the quality of the plan they offer (such as the small print of each critical illnesscondition), make sure you know what their claims history is and how this compares with the other companies in the market.

ACTION POINT

With several providers offering this type of cover, take your time before you sign on the dotted line. You really do need to do your homework to give yourself the best chance that you'll end up purchasing the correct policy.

Ray Prince is a fee based Certified Financial Planner with Rutherford Wilkinson ltd, and helps UK Resident Doctors and Dentists plan to achieve their financial objectives. Just visit http://www.medicaldentalfs.com where you can request your free retirement planning guide.

Rutherford Wilkinson ltd is authorised and regulated by the Financial Services Authority.