From This is Money:
Critical illness insurance pays out a lump sum on diagnosis of a serious illness and the £50,000 payment on Meryn’s Scottish Widows policy was a life-changing sum, enabling her and husband Brian, a 38-year-old manager for a construction company, to pay off their mortgage.
Meryn, 47, a bank administrator from Cardiff, says: ‘It was only when I contacted our financial adviser in January this year to talk about getting some insurance for our mortgage payments that a potential claim on my critical illness cover came to light.
‘I hadn’t spoken to our adviser in years, but I mentioned my battle against cancer in passing and it was at that point that he said I probably had a valid claim on my policy.’
Meryn and Brian, who have a nine-year-old son, Joshua, took out a life and critical illness policy shortly after their son was born. They had continued to pay the £23-a-month premium, but had lost the documentation. At the time of Meryn’s diagnosis the policy was the furthest…