Half of critical illness holders unaware of conditions covered

Vitality has identified a “critical illness gap” and raised awareness of the issues, which it hopes will ultimately help better protect consumers.

One key condition identified by Vitality within this gap was Crohn’s disease, as 16 per cent of CIC policyholders believe their policy would pay out in the event of a diagnosis.

However, Vitality warned that not all CIC policies cover the condition, and those which do require instances of surgery to pay out.

Given that only one in five of those diagnosed with Crohn’s will require surgery within five years of diagnosis, the likelihood of a successful claim being made is significantly reduced.

Policyholders also believed they would be covered for conditions such as loss of sight in one eye, a craniotomy, pulmonary embolism, necrotising fasciitis, and the surgical removal of a kidney.

However, Vitality pointed out these conditions are not typically covered by critical illness plans, with some unique to serious illness cover, Vitality’s alternative to critical illness.

VitalityLife managing director, Justin Taurog, said: "We’ve long understood that our clients want to be covered for a wide range of conditions, and while something might not be life-threatening, it can significantly threaten their way and quality of life.

“We designed our serious illness cover to provide extensive protection that provides comprehensive protection that covers illness earlier and pays out for conditions not covered anywhere else."

Taurog added that, in 2022, one in eight claims paid by serious illness cover were not covered by a typical enhanced CIC plan which highlights that serious illness cover is more than a name difference.

Instead, Taurog argued that it is responding to the modern trends in illnesses, aligning it to the needs of the modern consumer.

tom.dunstan@ft.com

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