Illness claims to be restricted

The insurance industry has announced that there could be changes regarding the diseases that are covered by critical illness policies.

This could see many that have such cover being denied payouts if they are diagnosed with a serious illness such as cancer.

As part of the new regulations, policy holders will have to demonstrate that their illness is preventing them from living a normal life, meaning that simply being diagnosed with an illness will not ensure a payout.

David Hollingworth, a financial advisor, told This is Money: “It means you will have to be very careful when shopping around for a policy to look at the precise definitions. The danger is that people will buy inferior cover.”

However, insurance bosses are saying the new regulations will mean lower premiums for customers.