Does a Critical Care claim payout null the policy?

Lovelyguy

Hi

Thankfully we don't need to claim, but I was reviewing my policy and saw that they pay out upon diagnosis of serious cancer etc. I'm presuming they'd cancel the whole policy upon payout. It wasn't clear.

My concern is if the person survived they'd be no longer covered. Sounds weird but I hope is understood in the context.

The policy is for 300k (mortgage cover) but the illness benefit is 50k.

Has anyone ever heard of what happens in this scenario?

I don't want to ask my insurers in case we are unfairly flagged as ill. We're genuinely not.

Thanks for any input.

daheff

i think it depends on the policy. Some pay out on first claim only, some stay in force after. i think you need to check in with the broker

Henry Ford III

Two elements to that policy by the sounds of it. Life assurance and critical illness cover.

If a claim for critical illness is paid that element ceases.

The life assurance element would remain in force.

p.s. Asking your insurer won't see you flagged as Ill.

amdublin

Two scenarios. It depends on type of policy i.e what you purchased

1. Cancer claim of $50k is paid out and this reduces the life cover payment (at death) to $250k. Total (potential) pay out $300k
2. Cancer claim of $50k is paid out and this does not reduce the life cover payment at death ($300k). Total (potential) pay out $350k

Obviously policy no.1 would have been cheaper to purchase than policy no. 2. Just call your broker or the insurance company and clarify which type of policy you have