PPP Healthcare has launched the first high excess PMI product geared towards older customers, with a...
PPP Healthcare has launched the first high excess PMI product geared towards older customers, with a one-off compulsory excess of £5,000.
Unlike other products on the market which charge an excess per claim or per policy year, PPP's new plan - Healthy Outlook - charges one excess per person covered for the lifetime of the policy.
High excess plans have proved popular with customers who, due to rising premiums, have found themselves priced out of the market. Usually aimed at younger, healthier customers, high excess policies provide an attractive option for those who do not anticipate high claims, but welcome a safety net.
However, PPP's new offering is targeting 'healthy greys' - middle-aged customers who have a good medical record and may find costs spiral if their health deteriorates.
Aimed at customers who may have been tempted away from PMI in favour of self-pay, Healthy Outlook is also designed to act as a financial planning tool. It gives IFAs the option of combining the sale of the policy with an ISA, for example, to cover the hefty excess.
Nye Jones, channel development manager at PPP Healthcare, said: "Healthy Outlook provides a twist on how current PMI is sold. It is more of a financial product than medical insurance. PMI can be quite an emotional purchase, but this product adds a financial dimension, adding to its attractiveness in the growing self-pay sector."
Benefits included in the policy before claims reach the £5,000 excess include a £200 cash benefit to a maximum of £2,000 per year for every day spent as an NHS in-patient or day-care patient, international emergency medical assistance and access to PPP's 24-hour health information and personal counselling service. Once the excess is reached, premiums double and comprehensive cover kicks in.
According to PPP, the Healthy Outlook plan would require a 50 year-old to pay £323.67 in annual premiums before reaching the £5,000 excess, with premiums doubling to £647.34 thereafter.
Stephen Walker, specialist PMI intermediary at Medical Insurance Services, said: "This is an interesting concept and premiums are reasonably competitive, but once customers have paid the excess, premiums not only double but there is an age-related increase too. The industry is in need of good, low-cost policies, and although this may not be the best option, it is a welcome addition to the market."
Healthy Outlook offers 40% initial commission and 5% on renewal.
