CIExpert on Aviva's revised Relevant Life policy

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Within the new version, critical illness cover (CIC) has been replaced by ‘employee significant illness cover', which covers only the most serious conditions - such as cancer, strokes and heart attacks - which result in retirement.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