What is buy back in a critical illness plan ?
If you select earlier critical illness benefit or simply critical illness benefit when you buy critical illness insurance, you can have the opportunity to take the buyback option. The buyback option will allow you to obtain further critical illness insurance should you happen to make a critical illness or TPD claim. In this case, your insurance company will have no other choice than to accept your claim and award you benefits. However, you have to be under the age of 60 to be eligible for the acceptance of a claim.
In the past if you had claimed for heart attack and now wish to invoke the buyback option, your insurance company will have to perform a number of things. Firstly, your insurers will contact the concerned doctors and medical consultants who had treated you to request details of your medical status. As soon as your insurers receive the proof that 1 year has passed since you had been successfully treated with no signs of reappearance of any heart attack, they will prepare your buyback benefit. This option has to be taken inside 5 years of your claim being accepted by critical illness insurance. Selecting the buyback option with critical illness insurance can be an advantage.
Buy back is also known as reinstatement cover in some polices, different providers call things by different names so it is important to clarify exactly what it is you require from the policy that you choose and you do not mean something different to what is offered to you. Normally buy back or reinstatment covers a number of different illnesses but the list will not be as comprehensive at the original cover. It will normally exclude the illness that you suffered from in the first place to get the claim
Tags: critical illness, critical illness cover, critical illness insurance, critical illness quote