Skandia

Skandia Protect (fixed term)Maximum age at start of insured critical illness (CI): 60

Minimum policy term:

For CI cover, the term must be between five to 25 years. Fixed term is available for life cover and CI cover.

Maximum expiry age: For a fixed term, 70.

Maximum term for CI cover: Between five and 25 years

Maximum sum assured where CI is included:

For CI cover with a fixed term:

- £1.25m for terms of 10 years or less or rolling term policies

- £500,000 for terms of over 10 years

- No maximum sum assured for life cover

Minimum acceptable monthly premium: £25

Guaranteed premium rates for standalone CI: Yes

Automatic sum assured indexation available:

Skandia Protect offers two inflation options to policyholders. When the policy is taken out, the policyholder can use the inflation option automatically or on request. The automatic inflation option routinely increases the sum assured each year. Under the inflation option on request, Skandia will offer to increase the sum assured each year.

Joint life with 2x cover basis available:

The policyholder can set up two single policies within one plan.

Plan available on a life of another basis:

The policyholder can apply for insurance for one or two people not including themselves providing they have an insurable interest.

Waiver of premium available:

Premium protection benefit option is available for life cover and CI cover.

- If the policyholder includes this benefit Skandia will waive their commitment to pay premiums if they cannot work because of an illness or disability.

- To claim, the policyholder must be unable to perform:

- Their "insured occupation" as shown in their policy schedule or

- Three out of eight activities of daily working and not be in any gainful occupation

- Skandia will waive any commitment to pay premiums after they have been unable to work for six months and continue to pay them until the earliest of:

- The relevant life assured's 65th birthday

- The relevant life assured's recovery

- The relevant life assured's return to any form of gainful occupation

- The death of the relevant life assured

- Payment of the full sum assured

- The end of the policy term

Option to buy-back CI after a claim: Yes - cover reinstatement option. Skandia Protect offers the opportunity to apply for after-claim cover following a claim using the cover reinstatement option.

It is available at an extra cost and only when applying for Skandia Protect. This option is available for CI cover and life cover with total permanent disability (TPD) benefit.

Option to vary term after start date other than by insurability: No

Plan permits variations to sum assured other than guaranteed insurability options (GIOs):

Future flexibility - clients can increase their cover by using the GIOs at any time.

They can also choose to inflation-proof the sum assured at any policy review date.

Alternatively, if a client's need for cover reduces, they can reduce the cover at any time. If they need a different type of cover in the future, they can apply for a new policy and add it to the original plan.

An application for a new policy is subject to underwriting.

Variations to plan by endorsement to policy:

Plan variations are dealt with by endorsement to the policy.

GIOs on marriage: Yes

GIOs on childbirth or adoption: Yes

Other GIOs offered: Yes

GIOs on promotion or salary increase: Yes

GIOS on increase in business liabilities: Yes

GIOs on moving house, increasing mortgage or taking out a loan: Yes

Joint life separation: Yes

Sum assured in instalments:

Policyholders can choose to have a life or CI claim paid in one lump sum, or in four equal yearly payments.

Time to qualify as a non-smoker:

12 months - the premiums for life cover and CI cover take into account whether the life assured smokes. Skandia considers those who use tobacco or any tobacco based-product (including nicotine patches etc) to be smokers.

Period within which a claim must be notified:

Three months (13 weeks)

Best Doctors service:

If the plan includes CI cover, the policyholder will automatically have access to the Best Doctors service (see access to support helplines below) to make sure they get the best possible treatment should they need it.

Red Arc service: No

CI conditions covered:

The plan covers the following CI conditions - Alzheimer's disease, aorta graft surgery, bacterial meningitis, benign brain tumour, blindness, cancer, cardiomyopathy, coma, coronary artery bypass surgery, deafness, heart attack, heart valve replacement or repair, HIV/Aids (occupational accident, assault, blood transfusion), kidney failure, loss of independant existence, loss of limbs, loss of speech, mastectomy benefit, major organ transplant, motor neurone disease, multiple sclerosis, paralysis/paraplegia, Parkinson's disease, pre-senile dementia, progressive supranuclear palsy, stroke, terminal illness, third degree burns, two-vessel angioplasty, low grade prostate cancer benefit.

Does the product offer access to support helplines:

Best Doctors - Skandia offers CI claimants the independent support service best doctors. Best doctors provides help and advice for second opinions and fast access to treatment.

Grace Consulting:

Grace Consulting is an independent organisation specialising in helping those who need long-term care.

If a client needs long-term care, Skandia will ask one of the Grace care advisers to see them. The adviser will be able to help, for example, by recommending suitable assistive devices or in finding suitable domiciliary or residential care.

The Skandia claims department can give more information about how this service may be able to help a client when they pay the claim.

Basis for inclusion of TPD:

This option is available with life and CI cover. If this is included Skandia will pay the guaranteed lump sum if the policyholder becomes totally, permanently and irreversibly disabled.

To claim, the policyholder must be unable to perform:

- Their insured occupation shown on the policy schedule or

- Three out of the eight activities of daily work

ABI/IFAA exclusions:

- Drug, alcohol and solvent abuse

- Unreasonable failure to follow medical advice

Insurance requirements the plan allows clients to tailor:

The plan can include the following benefits:

- Life cover - can be arranged on a fixed term, rolling term or whole of life basis

- CI - can be arranged on either a stand alone basis or as an accelerated death benefit. This cover can be on a fixed term or rolling term.

- Optional benefits at extra cost

- Total permanent disability benefit

- Premium protection benefit

- Cover reinstatement option

- Optional benefits at no cost

- Continuing cover option

- Inflation-proofing

- GIO

- Advice services

- Installment option for claim payments

- The plan provides flexibility to add, remove and vary benefits

ANALYST'S COMMENT

In an era when the credibility of critical illness (CI) insurance is being questioned by consumers it is essential that products are judged on their quality of cover rather than just price.

Although not a new entry to the protection arena, Skandia Protect offers one of the most comprehensive CI propositions available.

The plan offers guaranteed premium rates for CI cover on a conventional term or rolling term basis.

The rolling term option provides cover for 10 years with the option to renew at the end of the period.

In addition life cover can also be included on a non-profit whole of life basis.

Flexibility is very much at the centre of the proposition.

It includes a full range of guaranteed insurability options for personal and business events together with indexation.

The plan takes an innovative and flexible approach to indexation by offering "automatic" annual increases based on retail price index (RPI) capped at 5% or 10%, or alternatively on an "on request" basis.

Under the second option the client is offered the opportunity to increase cover by an amount up to the level of RPI, subject to a maximum of 10%.

In both cases Skandia, unusually, will allow the client to decline the increases without losing the right to future invitations.

The normal range of critical illnesses is complemented with the inclusion of mastectomy benefit, two-vessel angioplasty, low grade prostate cancer benefit and serious accident benefit.

The plan also extends the client benefit away from merely the issue of a cheque with the inclusion of surgery benefit.

This provides the funding, out of the sum assured, for coronary artery bypass surgery to be carried out on a private basis.

The cost of Skandia Protect may be higher than other CI policies - but this is merely a reflection of the quality of cover provided.

Nick Telfer, head of life and protection, Defaqto.