There has been a lot of publicity surrounding an insurer apparently refusing to pay out on a critical illness policy because a poor chap suffered a cardiac arrest and not a heart attack.

Without getting in to the ins and outs of this particular case, it does illustrate the importance of knowing what you are covered for when you take out insurance.

It turns out that in this instance a policy taken out some years ago didn’t cover cardiac arrest at that time but did cover a heart attack – they are different.

Since then, to be fair, the insurer has changed the policy to include both and though they haven’t paid out on this guy’s claim, they are providing some financial support.

I must have said a million times how important it is to check the small print when you take out any type of insurance but particularly critical illness.

These policies are complex, particularly because different insurers have different illnesses that they do and don’t cover and in many cases, different levels of pay out depending on the illness insured against.

Checking the details is one of my four golden rules when it comes to taking out critical illness insurance.

Number one is shopping around to find the right policy that gives you the cover you need and being as thorough and comprehensive as you can. Number two is, as I say, checking the small print for any exclusions and to be sure exactly what is covered and what isn’t. Number three is about being honest. A number of times I have seen insurers refuse to pay out because a customer did not mention a previous illness or pre-existing condition when they took out the policy. I know it must be tempting to hide a medical condition in the hope that it keeps your premiums down. But it really isn’t worth the risk. Better to be honest with the insurer, even if you do pay a slightly higher premium, rather than risk having no payout at all.

Golden rule number four is keeping your insurance policies under review. Don’t just sign up and forget about them. Your circumstances and needs can change and, as this chap discovered, policies change too and there might be something better or even cheaper available that provides the cover that matches your needs today.

My best piece of advice of all however, is to discuss critical illness – or any insurance or mortgage matter – with me. My advice is free and I can help guide you through the maze of different products to help avoid costly mistakes later. Call me on 07767 692 653 to fix a meeting.