L&G has introduced a new critical illness insurance upgrade option. Called Critical Illness Extra, or abbreviated to CIx, it offers top end cover, with 95 conditions covered. Standard CI cover, which includes fewer conditions, remains available too. Both cover levels include basic child cover too, with the option to increase to children’s CI Extra cover.
New 100% payout conditions for adults include: brain injury; cauda equine syndrome; drug resistant epilepsy; heart failure; intensive care (min seven days); interstitial lung disease; Kennedy’s disease; myasthenia gravis; neuromyslitis optica; Parkinson’s plus syndromes; peripheral vascular disease; pneumonectomy; pulmonary artery surgery; severe Crohn’s disease, and syringomelia or syringobulbia.
The definition has also been improved/widened for: benign brain tumour; blindness; cardiomyopathy; open heart surgery, and Parkinson’s disease.
Additional covers (which pay the lower of 25% of the sum insured or £25,000) include: aortic aneurysm; aplastic anaemia; carotid artery stenosis; central retinal artery or vein occlusion; cerebral or spinal aneurysm; cerebral or spinal arteriovenous malformation, Crohn’s disease; diabetes mellitus type 1; drug resistant epilepsy; Guillain-Barre syndrome; less advanced cancer (21 are covered); other cancer in situ or neuroendocrine tumour of low malignant potential; non-invasive gastrointestinal stromal tumour; pituitary gland tumour; removal of one or more lobes of the lung; removal of urinary bladder; significant visual loss, and third degree burns (10% of body area).
L&G says it has a continuing improvement philosophy and this new option adds further choice to its CI range, along with its recently launched optional Children’s Critical Illness Extra, and GP24 virtual GP service. Nurse Support Services is included for all Critical Illness customers.
What They Say
Intermediary director Craig Brown said: “Intermediaries are critical to our business. We’ve listened carefully and thoughtfully delivered a market leading choice of critical illness cover, allowing advisers to strike an optimum balance between cover and price for every customer. We are enabling Intermediaries to protect more customers than ever before.”
What We Say"L&G’s new two tier approach to CI cover – Standard and the new Extra – enables advisers to offer clients a choice of cover. They can either choose a good standard package or pay extra and get a higher level of cover. Not only does that give clients a choice, it also makes it easier for clients to judge value. Previously, most clients had nothing to compare the cost of cover against – is this CI policy expensive or good value? How can I tell? Just by offering a choice helps to illustrate relative value.
"Many clients will choose to pay relatively little more (or choose a slightly lower benefit) to get Extra cover, not least because of the risk of not having cover when a critical illness hits. An illness might make up less than 1% of all CI claims but, if it hits you, it doesn’t matter if it’s 1% or 91%, you’re still not covered.
"The move also suggests more people want CI cover to do exactly what it says on the tin – if you suffer a critical illness, you simply want it covered. The downside is added complexity but, does a few more pages of medico legal definitions mean too much complexity? CI is too complex anyway and I suspect most people will choose comprehensive cover – just as we do with our car and home insurance."