Virgin Money Life Insurance has launched a radically scaled-down product which will pay out only if ...
Virgin Money Life Insurance has launched a radically scaled-down product which will pay out only if a policyholder develops cancer.
The Big V, provided by Scottish Widows, has been marketed as nearly 50% cheaper than an average critical illness product.
Besides only covering one critical condition, it includes a severity-based claims process under which 10% of the sum assured will be paid out if early stage cancer is diagnosed.
Another 15% of the sum assured would then be paid if the condition develops into an intermediate stage of cancer, or 25% if no payment was received initially.
If a policyholder is diagnosed with advanced cancer, Virgin Money will pay out 100% or any remaining balance if an early or intermediate claim has already been made.
This allows the cover to be available from as little as £5 per month, Virgin Money claimed.
Sir Richard Branson, chairman of Virgin Money, said: "Our severity-based approach links the benefits to the impact of the condition, which allows such keen pricing.
"The staged lump sum payouts mean quicker payout of cash which will help our customers to focus on recovery and not worrying about their finances."
Kevin Carr, head of strategic relations at LifeSearch, said: "The plans will only be sold without advice by Virgin which means consumers when buying, and advisers when comparing, must be careful to compare like for like and be aware that both the premiums, and the definitions, are reviewable."
- Make your views on The Big V, or anything else in COVER, heard by emailing [email protected] or calling 020 7484 9711.
