The Real Cost of Cheap Critical Illness Policies
At Chetwood Lloyd Mortgages, we understand that financial security isn’t just about getting a mortgage—it’s also about protecting yourself and your loved ones from life’s uncertainties. One of the most overlooked areas of financial planning is critical illness cover. While it might be tempting to opt for the cheapest policy, making a decision based on price alone could leave you exposed when you need support the most.
A low-cost policy might seem attractive initially, but many people only discover its limitations when they make a claim. Here’s why choosing a policy based solely on price could be a costly mistake:
Many budget policies cover only a small number of conditions. Some insurers only provide protection for 20–30 illnesses, whereas comprehensive policies can cover up to 174 different conditions. In addition, certain cancers and early-stage illnesses might be excluded or only receive partial payouts, leaving you without adequate financial support when it matters most.
Low-cost policies often come with more stringent requirements. Some insurers demand permanent symptoms for conditions like multiple sclerosis before paying out, or require that cancer has spread to a certain stage before it qualifies for a claim. The claim process can also involve long assessment periods, making it harder to receive timely support.
Budget policies may exclude claims related to pre-existing medical conditions, high-risk occupations, or even certain recreational activities. Some also impose time-related restrictions, such as requiring survival for a certain period after diagnosis to qualify for a payout.
Common Pitfalls When Choosing Based on Price
Many people unknowingly fall into these traps when selecting a critical illness policy:
• Overlooking Policy Definitions – The same condition can have different definitions across insurers, meaning some policies require a higher level of severity before they will pay out.
• Ignoring Claim Success Rates – While overall industry claim acceptance rates are high, some insurers have stricter criteria, leading to lower individual payout rates.
• Skipping the Fine Print – Some policies have hidden clauses that could lead to rejected claims when you least expect it.
Understanding and selecting the right critical illness policy is no easy task. Policies are filled with small print, exclusions, and varying definitions that make it incredibly difficult for someone who isn’t trained in financial services to make a truly informed decision. This is where we come in.
At Chetwood Lloyd Mortgages, we are rigorously tested and regularly trained on policy details, ensuring we understand every aspect of the cover available. We read the small print so that you don’t have to, spotting potential pitfalls and exclusions that might leave you unprotected. Without this level of knowledge, it’s nearly impossible to compare policies effectively or understand the implications of different definitions and claim requirements.
One of the greatest advantages of working with us is that we are completely independent. Unlike tied advisors who are limited to a small number of providers, we have access to the entire market. This means we can find the best policy for you, not just the most convenient or profitable one for a specific insurer.
By using an independent advisor, you benefit from:
• Unbiased Advice – We work for you, not the insurers, ensuring you get the best policy for your needs.
• Comprehensive Market Access – We compare policies from all providers, not just a select few, to find the most suitable cover.
• Expert Analysis – We delve deep into policy terms and conditions to ensure you are not caught out by exclusions or strict claim criteria.
• Ongoing Support – Should you ever need to make a claim, we will be there to help you navigate the process, ensuring the best chance of a successful payout.
Investing in a higher-quality policy provides more than just peace of mind—it ensures financial stability during difficult times. Key features worth paying more for include:
Broad Condition Coverage
Comprehensive policies cover a wider range of conditions, including early-stage cancers, Type 1 diabetes, and serious neurological disorders. This broader coverage ensures you receive support before conditions become severe.
Children’s Critical Illness Cover
Many premium policies include children’s cover, providing financial protection for your family if your child is diagnosed with a serious illness.
Early-Stage Condition Payouts
Some policies offer partial payments for early-stage illnesses, ensuring you receive financial support at the first sign of a serious health condition rather than having to wait for it to worsen.
Added Benefits Beyond the Payout
A quality critical illness policy does more than just provide a lump sum payment—it can offer additional services such as:
• Access to medical specialists for second opinions
• Mental health support and counselling
• Financial planning assistance
• Flexible coverage adjustments to match life changes
To ensure you’re getting the best protection, focus on:
• Checking Condition Definitions – Look for policies with broader, more generous definitions to avoid surprise exclusions.
• Evaluating Insurer Reputation – Choose providers with a strong history of fair claim settlements and excellent customer service.
• Reviewing Claim Statistics – A provider with a high claim approval rate and reasonable processing times is more likely to support you when you need it.
Protect Your Future with the Right Cover
Choosing a critical illness policy is about more than just price—it’s about ensuring you have real financial protection in the face of serious illness. At Chetwood Lloyd Mortgages, we help clients find the right cover by considering all factors, not just cost.
If you’d like to discuss critical illness cover that truly protects you, get in touch with our team today. Your health is priceless—make sure your cover reflects that.
