Standard Life plans to continue to offer guaranteed critical illness (CI) rates for the next 12 mont...
Standard Life plans to continue to offer guaranteed critical illness (CI) rates for the next 12 months and increase the number of conditions covered.
However, the promise of sustained guaranteed rates only applies to the insurer's accelerated CI plans - standalone cover will move to five-year reviewable rates.
"It is fair to say that the claims experience for standalone critical-illness products has not been as good as it has been for the accelerated plans.
"However, we understand there is still a need for guaranteed rates, and advisers want to see that guarantees are available - which is why we are aiming to keep guaranteed rates for accelerated plans throughout 2004," said Gerry Warner, marketing development manager at Standard Life.
Guaranteed rates will come at a price - typically a 20% increase, due to be implemented in mid-January.
Warner said that this increase may work out less for applicants under 35, but more for those over this age.
Like most other providers, Standard Life is also removing angioplasty from its CI cover. As the procedure becomes more common and patients recover more quickly, the condition is making CI difficult to price.
A number of new conditions are being added to the insurer's CI plans. These include HIV infection following a physical assault or blood transfusion, CJD, aplastic anaemia, bacterial meningitis, liver failure and dementia.