CIExpert: Friends Life CI changes 'significant'

clock

CIExpert has described Friends Life's changes to its critical illness (CI) product as offering 'a number of significant improvements'.

Alan Lakey, director of CI Expert said: "Friends Life has made a number of significant improvements to its CIC product with a clear focus on continuing to offer top of the market cover.

"The seven conditions have had their wordings tidied up to meet the December 2015 deadline for complying with the changes to ABI model wordings. These have minimal impact other than to add clarity."

The four major changes are:

1. The introduction of a new over-arching condition - "less advanced cancers
2. The introduction of "severe hearing loss" as a new additional payment condition
3. Ensuring homogenous payouts for all additional payment conditions
4. Removal of Alzheimer's disease, which is already covered within Dementia

Less advanced cancers Friends Life currently includes four specific in situ cancers, breast prostate cervix and bladder, which provide for payments between £12,500/12.5% and £25,000/25%.

The new condition covers 20 in situ cancers, in addition to the 4 shown above it covers anus, bile duct, colon/rectum, gallbladder, larynx, lung/bronchus, oesophagus, oral cavity, ovary, pancreas, renal pelvis, stomach, testicle, uterus, vagina and vulva.

All require some form of treatment, apart from carcinoma in situ of the renal pelvis and urinary bladder.

The improvement means Friends Life now offers the widest cancer cover within a standard CI policy.

Severe hearing loss The ABI model wording, standard for most providers requires hearing loss in the better ear to be 95 decibels or higher. The additional payment reduces it to 70 decibels in the better ear.

The wording mirrors deafness working used by Old Mutual and L&G both of which provide 100% payouts.

Additional payment conditions all additional payment conditions are mandated as the lower of £25,000 or 25% of the sum assured removing confusion.

In some instances this has doubled the existing payment, eg CIS of the breast and cervix, cerebral arteriovenous malformation, lobectomy and non-malignant pituitary adenoma.

Lakey concluded: "In short, the above improvements are beneficial in that they will increase the numbers of claims and simultaneously reduce those cancer claims that are currently declined for being in situ.

More on Critical Illness

CIC knowledge gap widening: Vitality

CIC knowledge gap widening: Vitality

Nearly half of those covered not aware of claim conditions

Cameron Roberts
clock 27 March 2024 • 1 min read
Half of CIC policyholders unaware of claimable conditions: Vitality

Half of CIC policyholders unaware of claimable conditions: Vitality

Lack of awareness around Crohn’s diagnosis payout

Jaskeet Briah
clock 07 March 2024 • 2 min read
As seen on TV

As seen on TV

More focus needed on consumer CI awareness

Alan Lakey
clock 23 February 2024 • 3 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read