Spellman Financial Services

the insurance policy that could prove critical

Critical illness cover

Critical Illness Claims Statistics

Some people might be put off buying a critical illness policy because they believe it’s unlikely to pay out, despite the proportion of claims paid by insurers standing at just over 92%.

So why is there such a gap between perception and reality among consumers?

There have been well-publicised stories in the past where a policyholder has had a claim refused because their circumstances didn’t meet the insurer’s terms and conditions. But in reality, the number of critical illness claims declined are actually a tiny minority compared to the total paid out. Take a look at these numbers of critical illness claims paid from 2017 from some of the UK’s leading insurers:

  • Aviva 93%
  • Zurich 95%
  • Vitality 92%
  • Legal and General 92%
  • LV= 89%

When Insurers may not pay claims

The policyholder didn’t inform the provider about important medical or health information when they took out the policy

The condition claimed for didn’t meet the definition within the plan

The policyholder tried to claim for conditions that were excluded from their plan

Separating Fact from Fiction

A critical illness policy pays out a tax free lump sum on diagnosis for any of the specified serious illnesses – around 100, including cancer, heart attack or stroke. There are additional benefits available with these policies which can be life– changing when called upon.

The cover might seem costly; a policy from Aviva for a 35-year-old non-smoker needing £200,000 cover over 25 years would cost £64 a month and it gets more as you get older but the value of this type of protection makes it absolutely worth considering. In fact, the Association of British Insurers reported that a total of 96% of critical illness claims made for cancer were paid out across the industry, demonstrating the positive impact these products can have during the worst of times.

Remortgage and keep the loan

The insurance market can be complex and confusing.

Price comparison sites can make it easier to search and compare critical illness policies.

But there’s such a large choice and variety of products and you might end up paying for something that doesn’t quite fit your circumstances.

We can also arrange your Insurance for free and make sure you’re getting the right product in the process.

Don’t leave it to chance, seek professional advice from someone who will get to know your circumstances. Your family history and your likely protection requirements and recommend critical illness cover that’s right for you.

If you’d like to know more about how we can help you arrange serious or critical illness cover, or you’d like a better understanding of the options available, please get in touch.

Why use ourselves

Spellman Financial Services is a Mortgage & Insurance Brokers in Coventry.

We can provide face to face advice to customers in Coventry & Warwickshire. Or a telephony service if you prefer, for Local or National Customers.

Luke Spellman, the Mortgage & Insurance Broker you will speak to, has over 10 years experience in Financial Services. 5 of which has been spent working directly with Mortgages.


Spellman Financial Services is an Appointed Representative of Openwork Ltd, which is authorised and regulated by the Financial Conduct Authority

Spellman Financial Services is registered for Data Protection purposes through the Information Commissioners Office