Are there any PMI policies that cover chronic, for example, long-term conditions?
This is one of the most frequently asked questions of PMI providers and the answer very much depends whether we are talking about an individual with their own policy, or someone covered under a corporate scheme.
PMI providers will cover the cost of treatment for acute conditions, for example conditions which respond quickly to treatment that helps return the policyholder to the state of health they were in before suffering the condition or to a full recovery.
Certain medical conditions can need regular consultations and treatment over a long period of time and these are known as chronic conditions.
PMI providers will usually cover the cost of diagnosing and treating a chronic condition when it first arises. Cover will continue until the condition has been stabilised. Once this has occurred, PMI providers normally withdraw cover as the purpose of treatment at this point will effectively be to control the symptoms.
If, however, the condition worsens, then most providers will cover the costs of treatment needed to bring the condition back under control. At present, cover for long-term treatment that simply monitors and controls the symptoms of a chronic condition is not a feature offered under any UK individual plan.
However, cover for chronic conditions can feature in some corporate schemes such as a UK domestic scheme which the insurer has written on a cost-plus basis.
Another type of corporate scheme that might cover chronic conditions would be an international scheme where key employees that may have chronic conditions would be unwilling to travel abroad on business unless they were fully covered.
Mike Hall
