Vitality Life, which collated views from 2,000 people, found that there was a “critical illness gap” around the awareness of certain conditions and whether their critical illness would pay out.
It noted that 16 per cent of policyholders thought their policy would pay out for Crohn’s, a long-term condition where the gut becomes inflamed, in the event of a diagnosis.
However, not all policies will cover the condition, and those that do will need instances of surgery to pay out.
One in five of those diagnosed with Crohn’s will need surgery within five years of diagnosis, so the likelihood of a successful claim is “significantly reduced”.
Around 22 per cent thought that they would be covered for losing sight in one eye, and 17 per cent thought a craniotomy or necrotising fasciitis respectively would be included in their policy.
Approximately 15 per cent thought surgical removal of a kidney would be included as well.
Vitality Life said that these conditions were not usually covered in critical illness plans, and some were unique to its Serious Illness Cover product.
The lender said the findings show a “significant gap in people’s understanding of what their policy covers, which could leave people financially at risk and unprotected against conditions they expect they would receive a payout”.
Justin Taurog, managing director at Vitality Life, said: “We’ve long understood that our clients want to be covered for a wide range of conditions, and while something might not be life-threatening, it can significantly threaten their way and quality of life.
“We designed our Serious Illness Cover to provide extensive protection that provides comprehensive protection that covers illnesses earlier and pays out for conditions not covered anywhere else.
“In fact, in 2022 one in eight claims paid by Serious Illness Cover weren’t covered by a typical enhanced critical illness cover plan, highlighting that Serious Illness Cover is more than a name difference, rather it is responding to the modern trends in illnesses, aligning it to the needs of the modern consumer.”
In February, research from Ciexpert found that nearly a fifth of people surveyed would use critical illness cover to pay off their mortgage.
