UK cancer patients 'could claim extra £50,000' during treatment

UK cancer patients 'could claim extra £50,000' during treatment New data has shown how the help can be secured People in the UK have been told how they could get substantial financial support if they are diagnosed with cancer. Patients diagnosed with early-stage breast cancer or ductal carcinoma in situ (DCIS) who hold critical illness cover could be entitled to an extra payout of up to £50,000. New research conducted by Newspage and backed by Check Financial revealed that critical illness policies typically pay out between 25% and 50% of a £100,000 plan for early-stage breast cancer or DCIS diagnoses. Should a patient subsequently be diagnosed with another condition or experience disease progression, they may be eligible to claim the full £100,000 sum on top of the initial early payment. Insurance and financial specialists emphasise the importance of ensuring patients claim any supplementary payments available through their policy. Both Aviva Critical Illness Plan and Legal and General Critical Illness Cover provide 25%, with a maximum limit of £25,000. Royal London Critical Illness Cover provides up to 50%, though this is restricted to £35,000. Zurich Personal Protection's enhanced level provides 50%, with a ceiling of £50,000. Guardian Critical Illness Protection provides 50%, limited to £50,000. Payments for people diagnosed with cancer Oliver Jordan, director of Watford-based Check Financial, stressed that anyone facing this scenario must ensure they submit claims for any supplementary payments. He stated: "Usually the type of claim which has justified an additional payment rather than a full claim is deemed less invasive or less severe. To get the most value out of your insurance, you would want to claim an additional payout. "It doesn't affect your overall sum assured so if you are unlucky enough to be diagnosed with something else or the condition progresses, you could claim in full too. This means someone with £100,000 of cover with Guardian could claim £50,000 for cancer in situ of the breast, if this then progresses to stage 1, you could then claim the full £100,000. £150,000 in total. "The bigger concern is where providers aren't covering this at all. A simple comparison between the worst critical illness cover policy on the market with the best from 15 years ago shows the worst policy today is more comprehensive. Things like carcinoma in situ aren't covered at all by older plans. What is also concerning is future improvements meaning it is vital to regularly update your cover." Help with costs during treatment Michelle Lawson, director of Fareham-based Lawson Financial, described it as an "excellent inclusion in a policy". She continued: "Sums payable do differ from insurer to insurer, as do the terms and conditions of the point of payout and the policy wording itself. However, this cover is usually in addition to the standard sum insured and doesn't affect any future subsequent claims. "Most claim payouts for this would be the lower of the sum insured or a set figure. This benefit can be used to bridge a gap for time off work, childcare, transport to and from hospital, private medical treatment, among other things that impact daily life following a diagnosis." Scott Gallacher, director of Leicester-based Rowley Turton, described additional payments as "an improvement in critical illness cover". He went on to say: "Critical illness policies were originally designed to pay when someone suffered a defined condition meeting specified severity criteria. An early diagnosis such as DCIS may not meet the definition for a full cancer payout. Historically, that could have meant no payment at all. "Partial or additional payments therefore improve these policies, broadening cover rather than reducing it. In many cases, the balance of the main sum assured also remains intact, so the policy can still potentially pay the balance later if a more serious condition meets the definition." How to use cancer payouts Harvey Dhillon, founder and CEO of Zmartly, warned that recipients needed to exercise caution when managing any payout they received. He continued: "The gap worth worrying about is the one between that payment and the income you lose while you're off work. On a policy you own, the lump sum isn't taxed as income. Employees now get Statutory Sick Pay from the first day off, but that's only the legal minimum, so ask what your employer adds. "The self-employed get no sick pay, and the Self Assessment bill due on January 31 can include an advance on this year's tax based on last year's bill. If profits drop this year, they can claim to cut that advance, though going too low means interest on the difference. Don't spend the lump sum until you've listed the bills due while your pay is down."