Article by Ceri Wheeldon
The unexpected issues as a result of the increase in state pension age: Critical illness cover
Many women affected by the increase in state pension age are already looking at the issues of having to work for longer , and waiting longer for other related services such as a free bus pass etc . The increase is already controversial with many women feeling they had insufficient notice to prepare for the change, but there are now other issues that are coming to light.
Payments stopping at 60
Those who took out critical illness cover and claimed are now apparently finding themselves in difficulty, according to an article in the Mail . Most policies had payments linked to the state pension age at the time the policy was taken out- which for women meant the age of 60. Now those who have claimed who are unable to work and caught as part of the WASPI generation are discovering that payments are stopping at 60, but they are not entitled to draw their pension until much later.
So how do they bridge that gap? How has this situation been allowed to develop?
There appears to have been insufficient follow through on the issues surrounding increasing the state pension age. This is one that has come to light – how many others are there?
If you have a critical illness policy do check with your insurer as to how the change in pension age will affect your cover. We all take out various insurances hoping to never have to claim and none of us want to be too ill to work: – but if you have taken out critical illness cover do check your policy to avoid a future problem.
There are many things to consider as we move through midlife and beyond. Career and finance are just two of nine modules in the Midlife MOT online programme – providing you with your personal midlife roadmap.