What is critical illness insurance?

Critical illness insurance is designed to pay out a one-off tax-free lump sum if you suffer one of a number of specified illnesses, or if you have to have certain types of surgery. Its purpose is to help with the costs of a chronic or permanent health change, and it is often taken out in conjunction with life insurance, sometimes to cover a mortgage. However, you can use the money any way you choose, to pay off the mortgage or other debts, to meet the cost of medical bills or adaptations to your home, or even to retire early. 

Is MS covered by all critical illness policies?

All critical illness policies cover heart attacks, cancer and strokes, but not all cover MS, although it is one of four other core critical illnesses as defined by the Association of British Insurers (ABI). Those policies that do cover MS will pay out following a definite diagnosis by a Consultant Neurologist, as long as you have current impairment of motor or sensory function which has lasted for at least six months continuously.

In 1999, the Association of British Insurers (ABI) published model definitions of critical illness conditions. These represent minimum standards of cover, to which all their members have to adhere. Policies taken out since then with an ABI member will either offer this minimum level of cover or better. More details on this model definition of MS, and on those for other conditions, can be found in the Consumer Information zone on the ABI website ( www.abi.org.uk).

Check the small print to find out if it covers MS, and under what circumstances it will pay out.

There may be restrictions or exclusions which can prevent a claim. Some insurers will not pay out if the condition is diagnosed within three or six months of the start of the policy. You will also need to survive for a period of time, usually between 14 and 30 days, after an illness is diagnosed, but this should not be an issue for people diagnosed with MS.

If you do qualify, the money paid out can be a godsend, easing financial pressures at a time when you need to be concentrating on your health.  

Can I renew my critical illness insurance when I have MS?

Many critical illness insurances will offer the chance to extend cover up to certain limits without any further medical checks. These increase options, generally available if you move house, get married or have children, are very useful, particularly for those who cannot take out new insurance because of being diagnosed with MS. 

Can I take out new critical illness insurance if I have MS?

If you can get critical illness cover after being diagnosed with MS, it will almost certainly be with MS and related conditions excluded. This means you would be able to claim if you had a heart attack or cancer, for example, but not for something resulting from your MS. If you are struck by an excluded condition which is categorised as MS-related, but in your case was clearly caused by some other factor (for example, being paralysed after being run over) your insurer may consider a claim on an ex-gratia basis. There is no requirement for them to do so, however.

Some insurers may load premiums instead of, or as well as, imposing exclusions. Others may reject you altogether. Again, this illustrates the importance of shopping around.