Alan Lakey: The complexity of valuing plans

Additional payment conditions comprise a significant portion of high quality critical illness plans as proved by Zurich which includes 57 such conditions. This trend for introducing additional payment conditions started in June 2003 with Skandia. They introduced early stage prostate cancer treated by surgery and ductal carcinoma in situ treated by mastectomy. Understandably, the payment levels were less significant compared to today's plans, being limited to the lower of £10,000 or 10% of the sum insured. In recent years the standard template for additional payment conditions has been...