L&G has extended the benefits under the Critical Illness Cover element of its protection offering from 15 April. The changes include:
– A new range of benefits under children’s cover. This now pays 50% of the insured benefit (or £25,000 if less) on diagnosis of any of the insured conditions except total and permanent disability (TPD). There is a 14 day survival period and cover lasts to age 18 (or 21 if in full-time education). One claim per child and two in total per policy are payable. In addition, up to £1,000 is payable to a registered childminder if any claim is paid under the policy.
– Accident hospitalisation cover. This new benefit pays £5,000 if hospitalised longer than 28 days.
– Cardiac arrest added as a new condition.
– Wider cover, through changing the definition, now applies to major organ transplants.
– The maximum age at outset has been increased to 67.
– A new indexation option for term and critical illness cover is available. Benefits are linked to the Retail Prices Index (RPI, limited to 1-10% a year), with premiums rising by 1.5 times that increase (up to a maximum of 15% a year).
– TPD is now optional.
The plan now covers around 40 conditions and also pays out a partial benefit (the lower of £25,000 and 25% of the basic sum insured) on ductal carcinoma in situ of the breast treated by surgery and on low grade prostate cancer requiring treatment. Both the TPD and indexation options are based on the customer’s route to purchase and the level of advice they receive.
What They Say
Product and technical director for retail protection, Bonnie Burns, said: “When a child falls ill it’s a very emotional and worrying time for a parent. We also recognise that there may be unforeseen expenses if someone is confined to hospital for an extended period following an accident. Our key focus is to help as many customers as possible when they need to make a claim. Our latest enhancements will help us ensure we continue to deliver what customers want, when it really counts, if they need to claim.”
What We Say
"L&G’s latest changes add to a product that has been around for two decades and now pays out over £200m a year in claims. Widening the children’s cover will be popular with parents, as will the childminder benefit, which is a thoughtful and practical addition.
"The hospitalisation benefit is useful, but why restrict it to accidents only? The need is just as great if the hospitalisation is due to an illness or even complications or post-operative infections."