Three more providers have increased guaranteed rate premiums for new critical illness (CI) policies....
Three more providers have increased guaranteed rate premiums for new critical illness (CI) policies.
Scottish Equitable Protect, Standard Life and Swiss Life are the latest providers to follow Norwich Union's lead to increase guaranteed rates last year.
Swiss Life has increased rates by 20%, Scottish Equitable by an average of 25% ' although this does vary by age and term combination ' while Standard Life announced the biggest hike to date, at 50%. Norwich Union's rise stood at 40%.
To help soften the blow, Scottish Equitable Protect has introduced a five-year review-able rate option on all its CI products.
Heather Armstrong, head of marketing at Scottish Equitable Protect, said advisers need a more affordable option to offer clients when discussing the rate rise: 'It is vital insurers continue to provide critical illness cover at a realistic price.'
Despite Standard Life's 50% increase, it said premiums are now at the same level as they were three years ago, following several years of price reductions.
Gerry Warner, marketing development manager of Standard Life, remained con-fident demand is unlikely to falter. 'Research among advisers tells us our customers want a guaranteed rate option,' he said.
Although Swiss Life's increase is the lowest, it has made two major changes to illness definitions ' no longer offering cover for diabetes or terminal illness under CI plans.
Terminal illness will, however, still be available from Swiss Life as an acceleration of the death benefit on life protection and both accelerated life contracts.
