LV= today has relaunched its critical illness (CI) cover, with an increase in the number of conditions and partial payments covered, as it positions itself at the quality end of the market.
The move has been welcomed by IFA Alan Lakey, director of CIExpert.co.uk, who analysed the changes (see below) and pronounced them overall as positive.
He said: ""These changes have strengthened LV's reputation as a forward-thinking protection provider.
"Our analysis has confirmed that the changes have increased the likelihood of their plan paying a claim which, after all, is the whole point of these policies."
LV= now offers cover on 48 conditions (previously 38) and has increased the number of ABI+ definitions it offers by seven, taking the total to 16.
The extended definitions apply to some of the most common reasons for claiming on a CI policy, including stroke, cancer and multiple sclerosis.
Iain Clark, managing director of protection at LV=, said: "We are looking at quality as well as quality in respect to our business, I think the market understands that a higher quality product comes with a little bit of a price attached to it.
"But we believe that the quality end of the market is something our strategic relationships are looking for.
"We talked to them and to customers and listened to the feedback we believe that the proposition we have now is what the majority of the market wants."
LV='s critical illness cover now also offers seven partial payments (previously two).
LV= does not reduce the overall level of cover clients could receive by the amount paid in partial payments, so clients could receive over 200% of the original sum assured through partial and full payments.
The number of illnesses policyholders' children are covered for has also been increased to match the adult conditions (excluding Total Permanent Disability).
If a child is covered under more than one parent's policy the amount that LV= will pay out in total has doubled from £25,000 to £50,000[1].LV has upgraded its critical illness offering
CIExpert analysis:
Negative Changes
• Ductal Carcinoma in situ of the Breast - payment reduced to lower of £12,500 or 12.5% of sum assured
• Total & Permanent Disability - adoption of the ABI model wording requiring failure of 3 of 6 tasks. The previous version requiring failure of 3 of 8 was more claim-friendly
Additional Conditions
• Benign Intrameduallary Spinal Cord Tumour
• Coronary Artery Angioplasty on two arteries with 70% blockage (lower of £25,000 or 25% of sum assured)
• Partial loss of sight - better eye tests as 6/60 on a Snellen eye chart (lower of £12,500 or 12.5% of sum assured)
• Pulmonary Artery Surgery
• Removal of one lobe of the lungs (lower of £12,500 or 12.5% of sum assured)
• Severe Crohn's Disease - (lower of £12,500 or 12.5% of sum assured)
• Severe Ulcerative Colitis (lower of £12,500 or 12.5% of sum assured)
• Surgical Removal of an Eyeball
Improved Condition Wording
• Cancer - additional cover for malignant basal cell and squamous cell carcinoma
• Ductal Carcinoma in situ of the Breast - now includes segmentectomy, lumpectomy & quadrantectomy
• HIV Infection - cover extended worldwide and all occupations allowed if infection in course of duties
• Loss of Independent Existence - altered to reflect the new ABI model wordings
• Multiple Sclerosis - qualifying period reduced from 6 to 3 months
• Stroke - removal of the traumatic injury exclusion bringing clarity to consumers and advisers
