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Critical Illness Cover from Aviva


Pros

Cons
Aviva has removed a condition that no one ever claimed for anyway.Some people still like to count how many conditions are covered so one less looks like bad news.
One less Extra Cover choice to make and with widened benefits.Fewer Extra Cover choices may mean some clients would still have preferred an old option.
Overall the plan is now a bit simpler.CI remains a bit too complex and arguably needs radical redesign – a criticism of all CI plans not just this one.

The Product

Aviva has further tweaked its CI plans as follows:

  • The loss of speech condition has been removed. Aviva says it has not paid one claim under this heading in 15 years.
  • Extra Care cover is now available in three rather than four options, albeit with Section 1 cover as before. Aviva said it knows from its extensive claims experience that the illnesses it covers are more likely to occur as you age, and that symptoms will typically worsen over time. Consequently it has increased the maximum age for specified conditions from 50 to 55. By simplifying the Extra Care Cover definition, it should be easier for advisers to communicate the benefits to their clients. Aviva has also added a further four conditions that can be claimed on up to the age of 55 – these typically lead to a deterioration in health over a longer period, often resulting in significant care needs to support changes in lifestyle. The four are kidney, liver, heart and respiratory failure.

What They Say

An Aviva spokesman said: “We are always looking for ways to improve the number of claims we pay out, that's why in July 2019 we made some improvements to our Extra Care Cover.”

What We Say

"Headline news – insurer cuts CI benefits and reduces choice. All true – so why is this actually a good thing? "Let’s take ‘Loss of speech’ first. Aviva says it hasn’t paid out under this heading in 15 years and analysts CI Expert report they ‘are not aware of a single claim being paid by any insurer’. Moreover CI Expert adds that most loss of speech is due to cancer or stroke – both of which are covered under CI plans. So full marks to Aviva and we fully expect others to follow suit. "Extra Care cover offers fewer options than before but arguably four was one too many choices anyway. Choosing from three options just feels like an easier choice to make – try it next time you shortlist a washing machine or holiday destination. Changes to Extra Cover also make it more valuable and a good option for many people to add. "So, despite now offering one less choice and one less condition, we think these changes actually make sense. Funny old world isn’t it?"