What is the standard definition of critical illness used by insurance companies?

There IS no standard definition - you have to refer to each policy form. Sometimes it's defined by the individual states, and sometimes it's defined by the companies.

*I* define it as an illness that's potentially life-threatening.

something you'll die from normally, or a serious disease you can't be treated for

Go here to read the definitions of critical illness used by insurance companies. http://www.insurance-journal.ca/tables/04_05mayT2c.asp

There is no standard single definition of a critical illness rather your policy documents will list definitions of illnesses considered to be "critical". You could have a serious illness which is not covered by your policy or conversely you could be covered for an illness from which you quickly and fully recover.

The ABI (Association of British Insurers) have produced standard definitions which should be the minimum that each uk insurer covers. However, these are under review, or your policy may have been taken out before they existed, so you should really check your policy documents.

Also check the policy documents to see if the policy is an accelerated critical illness policy which means that death is also covered.

"Terminal Illness" is used for illnesses which will almost certainly result in death in the next 12 months.

each insurance company varies, but a critical illness tends to be an illness that means you are going to have for the rest of your life and might die from soon. If you have to declare illness to an insurance company it is best to declare things as small as blood pressure tablets or astma, in other words if you dont tell them they have a way out of paying you and you dont want that even if it does cost a bit more

uncurable illness....that may kill u :-(

typically it mean an illness that is going to significantly shorten your life expectancy.

the kind of thing that would force them to make a payout on life insurance. So MS isnt critical because it wont kill me in the immediate future, but cancer is because it probably will.

A critical Illness is one that is terminal (certain of death).

The definition can vary from product to product and sometimes they exclude certain illnesses, or include others that aren't terminal but very debilitating - read the terms & conditions very carefully and don't lie on any application form as it would invalidate any claim.

basically with critical illness insurance or dread disease insurance as we call it within the market will cover specific illnesses only which are set up in the financiers terms as exclusions apply. The reason for this is that medical advances over the years have came thick and fast and therefore poeple who have disease's which were once critical are no longer as individuals live far beyond what there diagnosis was. Now with most of the big life assurance firms within the Uk their core specifics will be: cancer, heart attack, stroke and any form of organ transplant. I hope that this is useful for you....thanks for the question.

i think critical illness means ,chronic illnesses, it may be dying or usually a cancer patients,a patients suffering from heart ailments had kidney failure or anything that had to be serious desease.

I guess it means you can claim 'cos you are not expected to live for long and your family is cared for by whatever insurance you chose.

Hi there,

The cynical answer is: 'whatever will enable them to wriggle out of their responsibilities ...'

More seriously, it depends on whom you buy from. The absolute sharks are the credit card companies, loan companies, etc., who will promise to cover your payments should you become ill or unemployed. If this actually happens to you - I write from bitter personal experience - you almost always find that you are only allowed to be ill with the same illness for one year and then the payments stop; that even if your loan lasts for 15 years the maximum cover you've bought will last five years; and there's an element of double- or even treble-counting by which you pay the insurance cover several times over and then find it's almost impossible to claim. You're also quite likely to be pressured by the 'last chance to buy' closing technique when you're at the point of committing to the loan. This kind of 'assurance' is now so notoriously bad value that there have been several more-or-less official investigations into it and I would look up Which? or one of the money programmes on the media and ask some very, very hard questions.

On the other hand, the Critical Illness cover offered by most of the non-cowboy insurance companies can be very good value. Their variations will differ, but basically the insurance is there to pay you a fixed amount (as determined by your premiums, and there's a regulation that permits you to insure only a proportion of your pre-sickness income) for as long as you are unable to work. I had this, as well as that sold by a loan company, when I was very ill and believe me was I ever grateful for it. Anyone who is a sole trader or not otherwise covered ought to think very seriously about taking it out.

Different companies will have their own definitions, so it's worth checking them out individually, but you need to look out for whether you'd be covered for mental/psychiatric conditions and for 'soft' conditions like back-ache. Basically, though, a good policy will pay out until you reach normal retirement date and a good insurer will often have ways of helping you back into some kind of activity if it all possible. I had a policy with Friends Provident and they were really good.

The other kind of policy to avoid at all costs is the kind that looks as if it will pay you up to a million pounds if a particular kind of disability strikes. On closer examination it turns out that you'll get your million only if you become permanently insane on a Bank Holiday. I had huge fun teasing one of these companies about what their definition of 'permanently insane' and 'completely paralysed' actually were. And when you read their small print, it usually turns out that they have a long time interval before they'll pay out, so that if (for example) you lose a leg and are entitled to ВЈx you'll have to wait for ages when you really need the money *now.*

Two morals: one, never be afraid to ask to see a policy before buying one, and two, look for what they *exclude* as well as what they include. And avoid those that come with credit cards or loans ... you'd be better off using the money to buy a tailored policy separately.

Love from one who's been there.

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