Critical illness insurance database CIExpert has released an analysis of Legal & General's alterations to its critical illness products.
Alan Lakey, director at CIExpert, said of the changes: "This confirms L&G's commitment to being a major player in the quality end of the adviser market."
Changes include:
Indexation: Now available as an option on level term and also stand-alone critical illness plans and Total & Permanent Disability is now optional having previously been included automatically.
Both changes, said CIExpet, bring the insurer in line with the majority of their competitors.
Major Organ Transplant; The ABI model claim definition has been enhanced to include transplant or waiting list approval for a lobe of liver and has also extended the waiting list to incorporate the Channel Islands and the Isle of Man.
Lakey noted that around 20% of liver transplants are lobe only so this is a worthwhile uplift.
Cardiac Arrest with defibrillator insertion; This is an additional condition and L&G joins Ageas Protect and Friends Life which already cover this treatment.
Accidental Hospitalisation Benefit; This is another new condition which pays out £5,000 if the insured spends 28 consecutive days in hospital due to a physical injury.
Lakey said: "L&G joins Bright Grey and Scottish Provident in including this form of cover although both of these companies pay the lower of £15,000 or 20% of the sum of insurance."
Children's Cover
a) Policyholder will be paid £5,000 if the child spends 28 consecutive days in hospital due to a physical injury which does not result in a critical illness claim.
b) Policyholder will receive £4,000 towards funeral costs if a child dies. This will not apply if due to a pre-existing condition or if a children's critical illness claim has been paid.
c) If a critical illness claimant uses a registered childminder whilst recovering the plan will pay up to £1,000 towards the cost.
d) Up to £100 per night (maximum £1,000) will be paid for family accommodation for each night a child spends in hospital following diagnosis of one of the critical conditions.
Lakey said: "This essential component of their plan has been dramatically improved. Approximately 4% of all claims are in respect of children so these enhancements carry great worth."
Maximum Age at Outset; Currently policies must be taken out before age 59 or 62, depending on the contract. These have been extended by 5 years to 64 and 67.
"This extends their age-range coverage beyond all their competitors bar Scottish Provident," said Lakey
