Legal & General, the UK’s number one critical illness product provider, has launched its new critical illness product covering three additional illnesses.
The new policy now incorporates the mandatory changes to definitions of critical illness, as set out by the Association of British Insurers (ABI). It also includes wider definitions for some illnesses. These new definitions are aimed at improving clarity for consumers.
The new ABI ‘Statement of Best Practice 2006(7) for critical illness cover’ helps protect consumers by making providers use a common format and generic terms for describing critical illness cover.
Bonnie Burns, Legal & General’s Protection Marketing Director says: “We set out to raise the bar for critical illness cover and at the same time we have taken the opportunity to incorporate the ABI’s new guidelines. I believe we have successfully created the market-leading critical illness product whilst refining the definitions for the types of critical illness that we cover and adding three new illnesses to the policy. When people take out critical illness they want to know exactly what they are covered for and they want confidence that their policy is going to pay out if they have an eligible claim. We already have a strong reputation for paying claims and paid out over £92 million on critical illness last year.”
The new critical illness definitions are designed to highlight when a policy will and won’t pay out, helping to reduce the disappointment of declined claims.
The three new illnesses are:
- Encephalitis – resulting in permanent symptoms (inflammation of the brain, normally caused by a virus)
- Systematic Lupus Erythematosus – with sever complications(a chronic autoimmune disease in which the immune system becomes hyperactive and attacks normal tissue)
- Primary Pulmonary Hypertension – of specified severity (a blood vessel disorder of the lung)
Two additional illnesses have been added by the ABI:
- Terminal Illness (already included by Legal & General)
- Traumatic Head Injury – resulting in permanent symptoms
Legal & General is widening the definitions on three illnesses, over and above ABI guidelines:
- Aorta Graft Surgery – requiring surgical replacement. Now covers traumatic injury in addition to disease
- Coma – resulting in permanent symptoms. Removed the restriction to be in a coma for at least 96 hours
- Heart Attack – of specified severity. Removed requirement for typical clinical symptoms such as chest pain from the model definition.