LV= has made changes to its critical illness plan meaning it is the final insurer to make adjustments in accordance with the 2014 ABI Statement of Best Practice (SOBP).
The CI plan now includes 42 100% payment conditions and 20 additional payment conditions which have payment limits varying between 12.5%/£12,500 and 25%/£25,000.
A statement from LV said: "Following the ABI's update to the Statement of Best Practice, we took the opportunity to make some changes to our critical illness proposition, which we believe provides customers with the best all-round protection in the market.
"The key changes we've made are significant enhancements to our children's cover by removing the requirement for the child to survive 14 days before paying a claim, and adding our existing unique enhanced claim payment feature - double accident benefit, to the children's policy.
"We cover 64 conditions including 44 full payment, 20 additional payment conditions and 17 ABI+ definitions providing wider coverage (and so a greater chance a claim will be paid) then the standard ABI definitions."
CIExpert analysis:
The changes
New 100% Condition Added
• Parkinson Plus Syndromes - this term encompasses three progressive neurological conditions that generally result in some form of permanent deficit.
Multiple System Atrophy and Progressive Supranuclear Palsy, which are often included within the Parkinson Plus Syndrome heading, are already covered as separate conditions.
In line with existing practice LV= will enhance the payment for those diagnosed before age 45 up to a maximum £150,000.
Claim Wording Adjustments for 100% Payment Conditions
• Benign Brain Tumour - in line with the SOBP the wording and exclusions have been altered with no real impact.
• Cancer - the definition has been widened to accommodate any non-melanoma skin cancer which has infiltrated the lymph nodes or distant organs.
• Alzheimer's Disease or other forms of dementia - unlike other companies which have chosen to incorporate Alzheimer's within the Dementia heading, LV= has opted to remove Dementia as a named condition and then add other forms of dementia (organic brain disease) to the amended heading.
• Coma - The SOBP exclusion for medically induced coma has not been added.
• Kidney Failure - a small adjustment to the wording which has no impact on claims.
• Major Organ Transplant - a clarification that the transplanted organ must originate from another person.
• Motor Neurone Disease - definition broadened to include spinal muscular atrophy (Kennedy's disease).
• Multiple Sclerosis - the requirement for 3 months of symptoms has been removed.
• Stroke - now excludes eye strokes
• Traumatic Brain Injury - merely a name change from the previous Traumatic Head Injury title
Claim Improvements for Additional Payment Conditions
• Children's Cover - the 14-day survival period has been abolished and the previous claim limit of two children per policy has been removed.
Additionally, LV= has added a ‘double accident benefit'.
CIExpert Verdict
Alan Lakey, director at CIExpert said: "The changes from LV= are relatively modest in that they are primarily responses to the ABI SOBP changes.
"LV= remains a leading critical illness provider but is being pressured by newer entrants, Canada Life and Scottish Widows, as well as by the substantial improvements introduced by AIG last December.
"The changes to the Alzheimer's/dementia cover may slightly confuse some advisers as will the continuation of different payment levels for the additional payment conditions."
Further reading
