CIExpert on Zurich critical illness upgrades
Alan Lakey is 'impressed by the two policies which offers flexibility to match individual needs' which 'compete strongly with other top quality policies'
Zurich Life has launched its new protection platform - Life Protection Platform - and with it has come an array of changes to its critical illness policy.
"Zurich has radically overhauled its current critical illness offering by replacing its current plan with two new versions - a standard policy that competes on cost and a high quality ‘select' policy," said CIExpert director Alan Lakey. "This is a developing theme within the protection world and offers consumers a choice based on cost or quality."
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STANDARD POLICY Covers 40 Full payment conditions, as below |
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Aorta Graft Surgery Aplastic Anaemia Bacterial Meningitis Benign Brain Tumour Blindness Cancer Cardiac Arrest Cardiomyopathy Coma Coronary Artery By-pass Grafts Creutzfeldt Jakob Disease Deafness Dementia Terminal Illness
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Encephalitis Heart Attack Heart Surgery Heart Valve Replacement or Repair HIV Interstitial Lung Disease Kidney Failure Liver Failure Loss of Hand or Foot Loss of Speech Major Organ Transplant Motor Neurone Disease Multiple Sclerosis
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Paralysis of Limb Parkinson Plus Syndromes Parkinson's Disease Pneumonectomy Primary Pulmonary Arterial Hypertension Pulmonary Artery Replacement Removal of an Eyeball Respiratory Failure Spinal Stroke Stroke Systemic Lupus Third Degree Burns Traumatic Brain Injury |
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Covers 2 additional payment conditions - lower of £25,000/25% of sum insured Less Advanced Cancer of the Breast Less Advanced Cancer of the Prostate |
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OPTIONAL Standard Child Cover Pays lower of £25,000 or 50% of the sum insured, £25,000/25% for additional payment conditions. Covers children from birth until 22nd birthday, death benefit from 30 days. Includes all of the 100% and additional payment conditions above plus a £5,000 death benefit |
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SELECT POLICY Includes all Standard policy conditions plus the following 11 Full payment conditions |
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Benign Spinal Cord Tumour Brain Injury due to Anoxia/Hypoxia Crohn's Disease Heart Failure |
Intensive Care for 10 days Mental Illness Necrotising Fasciitis
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Neuromyelitis Optica (Devic's Disease) Peripheral Vascular Disease Primary Sclerosing Cholangitis Syringomelia or Syringobulbia |
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Covers another 46 additional payment conditions - lower of £25,000/25% of sum insured |
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Aortic Aneurysm Aplastic Anaemia (lower severity) Bladder Removal Bowel Disease Brain Abscess with Craniotomy Carotid Artery Stenosis Cauda Equina Syndrome Central Retinal Artery Occlusion Cerebral/Spinal Aneurysm Cerebral/Spinal Arteriovenous Malformation Coronary Angioplasty Diabetes Type 1 Drug Resistant Epilepsy Facial Reconstruction Surgery Guillain- Barré Syndrome Infective Endocarditis |
Less Advanced Cancers of the . . .
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Liver Resection Non-malignant Pituitary Adenoma Pericarditis Removal of one lobe of the lung Significant Hearing Loss Significant Visual Loss Skin Cancer Third Degree Burns 5%-19%
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Additionally, there is a fixed £5,000 payment if a definite diagnosis before age 45 of one of the following complications of pregnancy - Disseminated Intravascular Coagulation, Ectopic Pregnancy requiring emergency surgery, Benign Hydatidiform Mole, Placental Abruption and Eclampsia. |
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Critical Illness Benefit Uplift Diagnosis of one of the following conditions prior to age 50 results in an additional payment of £100,000 or the sum insured if lower.
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Enhanced Children's Benefit This benefit is automatically included if the ‘select' policy is chosen. Pays lower of £25,000 or 50% of the sum insured Covers children from birth until 22nd birthday, £25,000/25% for additional payment conditions. Includes all of the 100% and additional payment conditions within the basic and Select plan plus a £5,000 death benefit. Additionally, the following child specific conditions have been included
There will also be an additional payment of the lower of £25,000 or 25% of the sum insured if a child is able to receive suitable treatment abroad which is unavailable in the UK. There is a similar additional payment if the child is diagnosed with invasive cancer. This payment is on top of the existing cancer payment so effectively pays up to £50,000. |
CIExpert verdict
"For many years Zurich has been content to offer a reasonably costed but average critical illness plan which relied as much on reputation and underwriting as it did the quality of its definitions," said Lakey.
"The new contracts confirm that Zurich is emerging as a serious player in both the premium-based and the quality led determinations. The ‘select; plan offers a comprehensive range of cover with an emphasis on invasive and in situ cancers and when children's cover is chosen includes the enhanced children's cover."
Lakey praised the "clear approach" taken by the insurer with children's cover included for every adult as well as six child-specific conditions, extended to age 22 without any requirement to be in full time education. "The uplift for children's cancer recognises the financial impact that such a diagnosis can have on parents and seeks to assist with payments over and above that paid for other conditions," he added.
Zurich has also done well to acknowledge "consequences of diagnosis at an early age" by offering "significant enhanced payments" of up to an additional £100,000 for certain neurological and other conditions diagnosed before age 50. There is also a conversion option whereby children ages 16-22 can effect their own policy up to £25,000 without evidence of good health.
"We are impressed by the two policies which offers flexibility to match individual needs and particularly the ‘select' version which will enable Zurich to compete strongly with other top quality policies," concluded Lakey.
Read about Zurich's new income protection policy here.
Further reading
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