What happens after a successful critical illness claim?

[Givemeallthewine8]

I’ve had surgery for a low grade sarcoma, tumour removed. No chemo or radiation needed. Due to the location it has affected my ability to return to work as my job is physical. Thankfully I had critical illness and put in a successful claim. I have been told my policy will now end and to speak with a FA. We still have life insurance.

What are my chances of starting a new CI policy? I do have a chance of recurrence so really don’t want an exclusion on the policy. Would income protection be better? We don’t have that. But have a mortgage and 3 dependents. My claim pay out is enough to clear all debts apart from the mortgage. The decrease in outgoings has relieved a lot of pressure.

I would still like future protection and worry incase it does recur as we are not financially protected now the policy has ended.

come on OP be realistic highly unlikely you’d ever get cover again for an illness which you’ve received a payout on and has an high chance of reoccurrence - I’m sure you can get CI cover again but premium will be higher and with exclusions

you can get income protection but you need to be working and is connected to your employment - most offer a combination of one or both relating to redundancy and/or ill health but again given you have already had a successful claim doubt you’d be likely to be covered for the same condition - it would be better if your husband took the income protection policy out

will you be returning to work but in a different non physical career?

Yes I am in the process of returning to work with reasonable adjustments. It is a long process and has really opened our eyes to our financial position. We have never felt so vulnerable financially before. My salary dropped to half pay and it was stressful as I earn more than DH. We were then relying on overdraft and CC monthly for groceries and fuel. Having to stop all activities for the children and get by. This claim has saved our bacon and got us out of debt with a small buffer to lean on. I just worry if it returns there is a real possibility of being off work for a much longer period as it would likely be loss of limb. I really just want financial protection for my family. May DH is looking for better paid work as a result as my future is uncertain in term of work. We will be arranging an appointment with a FA tomorrow. I suppose I do expect exclusions and a much higher premium which of course we’re willing to pay.

It may be possible to get critical illness cover again with higher premiums but the illness that you have been treated for like sarcoma or other cancers are likely to be excluded and not covered at all. That would depend on taking to a critical illness and life insurance specialists. Was the payout enough to pay off your mortgage?

No we had decreasing cover. I’m kicking myself now as we could’ve opted for full cover and paid higher monthly premiums but at the time it didn’t seem important! In fact my DH didn’t want critical illness cover at all but I insisted. We have no family medical history and clear medical histories (until now) ourselves. I’m so glad we’ve paid into it for 10 years and then met with this unfortunate life circumstance. Our Life insurance will cover the mortgage in the event of one of us dies which is reassuring knowing my DH and children have a roof over their heads. But I do worry about my ability to work in the near future.

My CI at work covers any conditions ongoing or not. Is this a personal insurance you’ve taken?

Yes when we took out our mortgage.

Just from personal experience, DH critical illness paid out which meant for him the life insurance element finished too unfortunately.

It would be ridiculously expensive to try and reinsure him despite the cancer only having a 3% chance of recurrence.

We were lucky not to have any debts or mortgage so could use the money for treatment.

It does worry me slightly that if something even unrelated were to happen to him I couldn’t take on his role in the family so would I guess have to look at downsizing to release funds.

My critical illness cover is sufficient to clear the mortgage and a chunk more (or was, I’ve since paid off the mortgage) that’s the point of it. Once it’s paid out you are unlikely to be able to get cover again due to preexisting conditions

Oh this is such a worry! My DH is healthy. It seems so unfair to penalise him in this way. We had the decreasing cover so after 10 years it’s enough to clear all of our debts other than the mortgage with extra to set aside. We have a long way to go with the mortgage. And also critical illness covers so many medical conditions. I’d feel better getting it with exclusions. My chance of recurrence is 10%.

It'll be extortionate.

I would focus your funds instead on building up a pot of savings and lowering debt / mortgage as much as possible.

Then if you are fortunate enough to stay healthy, at least you will have some extra savings behind you.