PruProtect has launched products that bridge the gap between private medical insurance (PMI) and protection.
The Health Cover and Health Cover Optimiser products will allow PruProtect clients easier and more flexible access to PMI and could save them 25% on cover.
PruProtect policyholders can add Health Cover to their plan to pay for the cost of private medical treatment for a wide range of acute conditions including day-to-day treatment, seeing a specialist or having an operation.
Instead of buying serious illness cover and health cover separately, they can now be combined in one package including a 5% discount compared to purchasing separately.
Three levels of cover are available on the Health Cover plan, supported by PruHealth, they are: Comprehensive, Primary and Heart and Cancer Cover.
The Health Cover Optimiser is available as a bolt-on to PruProtect's Serious Illness Cover, resulting in a saving of up to 25% compared to buying Health Cover separately from PruHealth.
The Optimiser allows those existing policyholders to choose how they receive the benefit, either through cash or care.
Customers can either take the lump sum and not receive any private medical treatment, or take a smaller lump sum, and use the rest to pay for medical treatment.
This, the provider says, gives greater flexibility at the point of claim and cuts out the overlap between the covers.
As described by Deepak Jobanputra, actuarial director of PruProtect, when the latter option is chosen, if the portion of funds allocated for medical treatment is not fully utilized the excess will be returned in cash.
And if the cost of care does exceed that allocated under the policy, the customer will not be charged any more and care will continue.
For conditions that do not trigger a serious illness claim, the Health Cover would cover treatment in the normal way.
Jobanputra explained how the products aim to provide wide ranging depth and breadth of health cover to consumers.
"You don't know what cover you need when buying that product (either critical illness or PMI), so we are offering flexibility of cover and choice at a very much reduced cost," he says.
"I've often heard consumers say that PMI is a luxury product, with the cost often cited as an issue, so we're making the product more accessible to a wider range of customers - not just to one product, but a range of options underlying that product.
"We can address the needs of consumers in a much better way, removing that duplication, and making it easier for consumers, intermediaries and the industry.
The provider is also offering an introductory 10% increase in commission on the products for the next three months, and will host roadshows around the country in June and July to introduce advisers to the new products which go live on June 12.
