If a week is a long time in politics, the month of January proved to be an absolute age in the world...
If a week is a long time in politics, the month of January proved to be an absolute age in the world of protection. Virgin Money's launch of its cancer-only plan, The Big V, has created such a stir that ripples are still pervading through the sector.
Needless to say, the comments have been far from complimentary, mainly due to the lack of clarity regarding the marketing of the product.
While advisers have slammed the fact that the product is cheaper than critical illness (CI) because it only covers cancer, Virgin and Scottish Widows have hit back at the criticism by pointing out that it was never meant to be a CI plan and is, in fact, a new proposition to the market.
While this may be the case, Virgin has brought the barrage of abuse on itself. In its official press release, Virgin is quoted as saying: "The launch of Virgin Money Cancer Cover will see customers save up to 45% compared to an average critical illness quote."
If the launch company compared the Big V to CI, then why on earth should advisers not do the same? The comparison may well have originally been intended to highlight the low cost of the cover, but the manner in which it has tried to achieve this has been a grave mistake.
The fact is, despite its good intentions, the launch has gone against the grain of what the industry has been struggling so hard to achieve - clarity. Instead, it has gone for the easy option of price. And in this day and age, cheap and cheerful is a winning formula, but it doesn't necessarily mean it's worth the price.
