Changes elevate the HSBC Critical Illness Plus plan into the top echelon of quality, writes Alan Lakey
Occasionally we relate a series of changes that have minimal impact to the value of a policy, a deckchairs on the Titanic arrangement which can prove dispiriting. So it is pleasing to report on a what is effectively a complete contract redesign by HSBC which provides extensive enhancements.
HSBC has retained its two-pronged approach with a Core Critical Illness product and the superior Critical Illness Plus, but has engineered numerous changes. The majority of these changes relate to the Critical Illness Plus version which has been substantially enhanced in value, thereby enabling it to compete against those quality offerings in the market.
The Core plan has 38 named 100% conditions and includes two additional payment conditions (less advanced cancer of the breast or prostate) and pays the lower of £25,000 or 25% of the sum insured.
The Critical Illness Plus has an additional 11 named 100% conditions plus 37 specified additional payment conditions paying the lower of £50,000 or 50% of the sum insured. Full details of condition wordings can be found in the tables below.
Child cover has also been augmented in terms of conditions included and payment levels, as below;
Core Critical illness
Lower of £25,000 or 50% for full payment conditions and lower of £25,000/25% for additional payment conditions
Critical Illness Plus
Lower of £50,000 or 50% for full payment conditions and lower of £30,000/50% for additional payment conditions
CIExpert Verdict
HSBC entered the intermediated critical illness arena in 2019 with a solid middle of the road plan that failed to excite advisers. Despite some over-the-top reviews it was lacking in USPs or redeeming features and as a result failed to ignite interest within the adviser community.
Today's changes elevate the HSBC critical illness plus plan into the top echelon of quality plans and it's gratifying to see insurers increasingly competing on quality rather than the tried and trusted methods of adding yet more (and sometimes pointless) conditions or chasing premiums to the floor.
The impact of these changes is to elevate the Critical Illness Plus plan towards the top of the quality tables and advisers who focus on quality need to give due consideration to the plan.
In conjunction with the high quality benefits courtesy of Square Health, the Plus version is showing as one of the highest three plans within the CIExpert website.
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New 100% conditions added to the Core critical illness plan
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Cardiomyopathy Liver Failure |
Definite diagnosis requiring one of three qualifying triggers Chronic liver failure due to cirrhosis requiring all three of the qualifying triggers |
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Changes to both the Core critical illness and Critical Illness Plus plans
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Benign Brain Tumour Benign Spinal Cord Tumour Deafness Motor Neurone Disease Third Degree Burns |
Treatment by radiotherapy or chemotherapy is now included Treatment by radiotherapy or chemotherapy is now included The claim requirement has been improved from 95db to 70db in the better ear All six of the main Motor Neurone Diseases are now included Coverage has been extended to include 20% of the face or head
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New 100% payment conditions within the Critical Illness Plus plan |
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Systemic Lupus Erythematosus |
A definite diagnosis with persisting clinical symptoms or permanent impairment of kidney function
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New additional payment conditions within the Critical Illness Plus plan - lower of £50,000 or 50% of sum insured |
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Crohn's disease Lobectomy Non-malignant pituitary adenoma |
Requiring one surgical resection The removal of one or more lobes of the lung Surgical removal or radiotherapy treatment of the tumour
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Conditions Removed |
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Significant Hearing Loss
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This additional payment condition has been removed from the Critical Illness Plus plan because the Deafness wording has been upgraded to mirror this condition's 70 decibel claim requirement.
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Children's Critical Illness Cover -
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The Core Critical Illness plan covers children from 30 days until the 21st birthday whereas the Critical Illness Plus plan extends from in utero to the 23rd birthday. No other insurer provides children's cover for all conditions throughout the entire pregnancy term. Additionally, the Plus plan pays the lower of £50,000 or 50% of the sum insured for full-payment conditions and the lower of £30,000 or 50% for the additional payment conditions.
Eight new child-specific conditions have been added to the Plus plan - Atrial/Ventricular Septal Defects, Cerebral Palsy, Cystic Fibrosis, Diabetes Type 1, Down's Syndrome, Hydrocephalus, Muscular Dystrophy, Spina Bifida. HSBC is the first insurer to extend child-specific cover for the full duration of a pregnancy, albeit with the caveat that the policy must have been in force for 9 months prior to a claim.
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Other Changes
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Bladder Removal
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This has been deleted from the conditions roster as it is already covered under the Less Advanced Cancer of the Urinary Bladder heading.
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Additional Benefits |
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Square Health is providing a range of online health services, 2nd medical opinion and a remote GP service for plan-holders and family. For the Critical Illness Plus plan this is augmented by a remote GP service, physiotherapy, mental health counselling and a free biennial health MOT for the plan-holder. The Core Critical Illness plan will offer the 2nd medical opinion and the remote GP service. This is the first time that a free health MOT has been included within an individual critical illness plan and is a valuable adjunct enabling an earlier diagnosis of conditions. The Critical Illness Plus plan also includes a children's hospital benefit whereby, after 7 consecutive nights, A payment of £100 per night is given to help defray costs and expenses incurred by the parents. |
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