So why are the policies controversial?

If you read the financial pages of many newspapers you may well have doubts about critical illness insurance. Journalists frequently highlight problems with the plans, often taking up the fight on behalf of policyholders who find their plans don’t pay out when they make a claim.



Some figures suggest that one claim in ten is actually refused – making many people feel they paid their premiums in vain. Other issues have arisen over the list and actual definitions of illnesses that are covered, though this is becoming less of a problem in 2007 now new standardised rules from the Financial Services Authority are coming into play.