The ABI (Association of British Insurers) has launched a consultation paper on a new guide to critical illness insurance for consumers.
The guide is designed to help consumers understand what critical illness insurance does and the main conditions it covers.
A spokesman told IFAonline: “We want to make sure consumers and financial advisers understand what critical illness insurance is there for, what conditions are covered by most policies and what consumer obligations are when filling out an application form.
“Our objective is to make products easier to understand. That is so that overtime there are fewer claims on critical illness insurance. If people better understand the product, what it covers them for and what it doesn’t cover them for, the chances of making a claim not valid will be greatly reduced.”
The anecdotal figure for rejected claims is about one in five, according to the ABI.
The consultation period runs until 28 September 2007, after which the ABI will send the guide to the Plain English Campaign to obtain a Crystal Mark.
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