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  • Critical Illness

CIExpert on Aviva's revised Relevant Life policy

CIExpert's Alan Lakey
CIExpert's Alan Lakey
  • Adam Saville
  • Adam Saville
  • @AdSaville_COVER
  • 12 April 2018
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New version is "a different beast entirely" compared to individual CIC plans, says Alan Lakey

Today Aviva announced it has launched a revised HMRC-approved Relevant Life policy. 

Within the new version, critical illness cover (CIC) has been replaced by ‘employee significant illness cover', which covers only the most serious conditions - such as cancer, strokes and heart attacks - which result in retirement.

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Enabling up to £1m protection and running from age 18 to 75, the new trigger requirements will rule out claims for minor heart attacks, strokes and early-stage cancers.

More clarity

According to CIExpert's Alan Lakey, "This new HMRC-approved version will provide confidence to advisers who previously worried about potential compliance repercussions."

However, he added, it's a "different beast entirely" when compared to individual CIC policies as it does not meet ABI requirements.

"The optional illness cover cannot be called ‘critical illness cover' due to the nature of the design as it is unable to meet the ABI's requirement for such a plan," said Lakey. "The new plan does not compare with the individual plans offered by Aviva, which is due to the insistence that a retirement event is created. Equally, it should not be compared in this way because it is a different beast entirely.  This plan is aimed at employers who wish to protect their employees.

"Having additional retirement event cover alongside death cover makes for a more comprehensive plan and is bound to prove popular," he added.

No confusion

Ultimately, though, Lakey welcomed the move as the agreement with HMRC has removed any uncertainty that existed around the issue within the market - for both providers and advisers.

"Plaudits go to Aviva for not only widening the scope of the market but for also ensuring that existing plans are not subject to challenge," said Lakey. "CIExpert has always been supportive of innovations that make use of the tax incentives available to assist in reducing the protection gap. This plan will go some way to achieving this desired outcome."

See the full list of covered conditions with CIExpert's comments below.

Conditions Included

Claim Triggers

Advanced Cancer

A tumour measured as III using the TNM staging classification, or chronic lymphocytic leukaemia measured a Binet Stage C, or Hodgkin's/Non-Hodgkin's lymphoma measured as Stage II using the Ann Arbor system

 

Aplastic Anaemia

A definite diagnosis with permanent bone marrow failure with anaemia, neutropenia and thrombocytopenia

 

Bacterial meningitis

Causing permanent neurological deficit with persisting clinical symptoms

 

Benign Brain Tumour

Causing permanent neurological deficit with persisting clinical symptoms

 

Benign Spinal Cord Tumour

Causing permanent neurological deficit with persisting clinical symptoms

 

Brain Injury due to Anoxia/Hypoxia

Causing permanent neurological deficit with persisting clinical symptoms

 

CJD

A definite diagnosis

 

Dementia

A definite diagnosis with permanent loss of ability to remember, reason, perceive, understand, express and give effect to ideas

 

Devic's Disease

Definite diagnosis with current impairment of motor or sensory function persisting for a continuous 6 month period.

 

Encephalitis

Causing permanent neurological deficit with persisting clinical symptoms

 

Intensive Care

10 consecutive days of tracheal intubation Resulting in permanent neurological deficit with persisting clinical symptoms

 

Kidney Failure

End stage liver failure requiring permanent regular dialysis

 

Liver Failure

End stage liver failure due to cirrhosis resulting in permanent jaundice, ascites and encephalopathy

 

Major Organ Transplant

Undergoing a transplant of bone marrow, haematopoietic stem cells, a complete heart, kidney, liver, lung or pancreas. Also a lobe of the lung or liver or inclusion on a UK waiting list for one of the above

 

Motor Neurone Disease

Definite diagnosis of amyotrophic lateral sclerosis, or primary lateral sclerosis, or progressive bulbar palsy, or progressive muscular atrophy or spinal muscular atrophy with permanent clinical impairment of motor function

 

Multiple Sclerosis

Definite diagnosis with current impairment of motor or sensory function persisting for a continuous 6-month period.

Parkinson's Disease

Definite diagnosis with permanent clinical impairment of motor function with associated tremor and rigidity

 

Parkinson's Plus Syndromes

Definite diagnosis of multiple system atrophy or progressive supranuclear palsy or Parkinsonism-dementia-ALS-complex or diffuse lewy body disease or Corticobasal degeneration which causes permanent clinical impairment of one of - motor function, eye movement disorder, postural instability or dementia

 

Pneumonectomy

Surgery to remove an entire lung due to disease or traumatic injury

 

Psychosis & Bipolar Affective Disorder

Definite diagnosis of one of - bipolar affective disorder, paranoid psychosis, schizo-affective disorder or schizophrenia. This must cause at least three of the following within one year. Being under psychiatric care, chronic symptoms lasting one year requiring continuous medical therapy or medication, in patient admission to a psychiatric ward for at least 14 consecutive nights, a court order made by the Court of Protection under the Mental Capacity Act.

 

Pulmonary Arteria Hypertension

Definite diagnosis of idiopathic pulmonary hypertension or chronic thrombo-embolic pulmonary hypertension

 

Respiratory failure

Severe lung disease with permanent impairment of lung function resulting in 15 hours per day oxygen therapy for six months, and forced expiratory volume at 1 second (FEV1) below 50% of normal and forced vital capacity (FVC) below 50% of normal

 

Severe Heart Condition

Failure of the heart to function as a pump evidenced by assessment as class 3 of the NYHA classification of functional capacity or an ejection fraction of 40% or less

 

Spinal Stroke

Death of spinal cord tissue due to inadequate blood supply causing permanent neurological deficit with persisting clinical symptoms.

 

Stroke

Death of brain tissue due to inadequate blood supply causing permanent neurological deficit with persisting clinical symptoms.

 

Systemic Lupus Erythematosus

Definite diagnosis resulting in permanent neurological deficit with persisting clinical symptoms and permanent impairment of kidney function with GFR below 30ml/min

 

Third Degree Burns

Covering 20% of the body or 20% of the surface area of head/face

 

Traumatic Brain Injury

Death of brain tissue due to traumatic injury causing permanent neurological deficit with persisting clinical symptoms.

 

Total & Permanent Disability

There are two claim definitions, dependent on occupational risk. Own occupation and activities of daily work. This benefit ceases at age 70.

 

 

 

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