Case Study: Timely decision not to cancel a critical illness policy paid off

There's never a good time to have to think about losing your main source of income, but for Derek and Janice Walker, his cancer diagnosis just weeks before Christmas triggered unwelcome financial worries.

In October, just three months after deciding to keep his critical illness policy, Derek Walker, 43, discovered he had a cancerous tumour on his kidney.

Derek, of Larkhall in Lanarkshire, first took out a critical illness policy four years ago when buying a house and was on the verge of cancelling it last summer to save costs. In the event, he instead opted to rebroke the insurance with Aegon for a cheaper premium of 60 a month, covering both himself and Janice. "We kept it because when we took it out originally I advised my sister-in-law to get critical illness cover for peace of mind. She did it and not long after that found out she had breast cancer, so she quickly benefited from the insurance," he said.

It wasn't long after deciding to renew the policy that Derek was also forced to make a claim.

"As soon as we found out there was a possibility of cancer, we contacted Aegon and it was no hassle at all. It paid out just before Christmas."

The payout was timely because Derek, a delivery driver with two children, Kieran and Eve, was facing up to losing valuable overtime pay. "Christmas is our busiest period, so having the policy in place gave me peace of mind when I was diagnosed.

"It took a lot of pressure off because we were worried sick. Having the payment and not having to rush back to work helped me relax."

Derek had his kidney removed late last year but was able to return to work in mid-January, although he is currently on a clinical trial being undertaken at the Betson Oncology Unit, Glasgow. "It's one of those things you pay for that you expect - or hope - never to get a return on.

"The only drawback is that I can't take another policy out now."