Minimum acceptable age: Anyone aged between 18 and 59 can apply. Maximum term: The maximum policy ...
Minimum acceptable age: Anyone aged between 18 and 59 can apply.
Maximum term: The maximum policy term is 40 years
Maximum sum assured where critical illness (CI) is included: Applications for benefits in excess of £300,000 will be considered at the sole discretion of BUPA on the basis of financial evidence of income or assets.
Guaranteed premium rates for stand-alone CI: Yes
Renewable rate option under the plan: Renewable term cover is a fixed lump-sum cover which is subject to renewal every five or 10 years. Subscriptions will increase at each renewal, based on the age of the person covered and subscription rates at that time.
Automatic sum assured indexation available: Policyholders can help protect the value of lump-sum benefit by selecting an indexation option when they join.
Sum assured indexation in line with a fixed percentage: The 5% option - on the anniversary of the commencement date the benefit will increase by 5%.
The 3% option - on the anniversary of the commencement date the benefit will increase by 3%.
Basis on which indexation increases are costed: Indexation increases are costed on an age attained basis.
Joint life first death plan available: A joint life contract, which pays out on the first claim, is available. Life cover does not apply on a stand-alone CI contract.
Keyperson plan available:
Cover is available for single, joint and second lives.
Monthly policy fee: £3.30
Waiver of premium available: As an option.
Maximum age at entry to include waiver benefit: 59
Age waiver cover ceases: A subscription waiver option is available when cover is applied for on any of those covered.
Default waiver definition of disability: If the member the option relates to is in a paid occupation, and was on the commencement date, BUPA will waive subscriptions for the period the member is unable to do their normal paid occupation, as a result of illness and injury, provided the member is not doing any other paid occupation.
Waiver benefit covers both lives: Waiver can cover any of those people covered under the plan.
Does the plan offer the option to buy back CI after a claim: A reinstatement option is available.
Guaranteed insurability option: The policyholder may want to increase the critical event benefit when the member, or either member if more than one:
• gets married
• has a child, adopts or becomes the leg al guardian
• moves house and takes out larger mortgage
• is promoted by their current employer or starts a better-paid job.
Length of time to qualify as a non-smoker: 12 months
Best Doctors Service: Clients who make claims under their BUPA CI cover will also have access to Best Doctors, an independent service that can locate and contact the specialists qualified to treat the condition for which the claim has been made.
Red Arc Service: Gives access to qualified nurses who can offer up-to-date health information and guidance.
Total number of CI conditions covered: 36 - Aids/HIV from occupation; Aids/HIV from blood transfusion; Aids/HIV from assault; Alzheimer's disease and presenile dementia; aorta graft surgery; aplastic anaemia; bacterial meningitis; benign brain tumour; blindness; cancer; cardiomyopathy; chronic rheumatoid arthritis; coma; coronary angioplasty; coronary artery by-pass surgery and open heart surgery; Creutzfeldt-Jakob disease:
deafness; heart attack; heart valve replacement or repair; insulin dependant diabetes; kidney failure; liver failure; loss of independent existence; loss of limbs; loss of speech; major organ transplant; motor neurone disease; multiple sclerosis; paralysis/ paraplegia; Parkinson's disease; progressive supranuclear palsy; respiratory failure; stroke; third degree burns.
Number of core critical conditions as defined by ABI/IFAA:
Seven
Number of ABI/IFAA additional conditions covered: 13
Number of other conditions covered: 16
Fracture Cover: If selected the following benefits will be payable should the insured suffer one of the following:
Fracture of the skull (closed) £1,200
skull (open) £2,100
vertebra £900
shoulder blade £900
jaw £900
sternum £900
pelvis £1,200
wrist £900
upper leg £2,100
lower leg £1,200
arm £1,200
cheekbone £900
foot £900
ribs £600
collar bone £600
Survival period for CI claims: BUPA will not pay the benefit where the claim is for CI unless the member or child survives for 14 days after undergoing that critical illness or being diagnosed with that critical illness (unless the benefit is claimed under a CI with life cover membership.
Children's benefit: For any natural or adopted child of policyholders or their spouse - or any child of which either policyholders or their spouse is the legal guardian.
Number of conditions covered for children's cover: 33
Child maximum benefit:
The child benefit is limited to 25% of the initial level of cover or £20,000, whichever is lower. Children can choose to take out a critical illness scheme when they are 18 without further underwriting - the maximum benefit is 200% of the original child cover with a maximum of £40,000.
Minimum age for children's benefit: Three months.
Child maximum age: 18
Basis for inclusion of total permanent disability (TPD): TPD benefit can be included as an option on either life where critical illness cover is selected.
Number of TPD definitions: Three - members can elect to take cover for permanent TPD cover on any person covered. If this is option is taken the benefit will be paid if the person the option applies to suffers a TPD as defined under the scheme. TPD will have different meanings for different people. it will relate to whether they can carry out their own occupation, if they can carry out any occupation to which they are suited or are able to carry out three of the activities of daily working.
Exclusions applicable to critical illness, waiver of premium, TPD and child cover:
• Failure to follow medical advice
• HIV/AIDS
• Self-inflicted injury
• Pre-existing conditions (child cover only)
Analyst's comment
The recent publication by the Association of British Insurers (ABI) of its latest statement of best practice for critical illness cover is to be welcomed and will hopefully re-energise the industry by improving consumer perception and encouraging product development.
BUPA is firmly established as a leading provider of health insurance solutions in the UK market.
Its Critical Illness Cover policy offers one of the most comprehensive stand-alone propositions currently available both in terms of the number of conditions covered and the flexibility it affords.
The plan offers cover on a conventional term basis with the alternative of either full term guaranteed, rolling five yearly reviewable or five or 10 yearly renewable premium rates.
It includes a full range of guaranteed insurability options for personal events and cover can be arranged on a level, decreasing or index-linked basis using either retail prices index, average earnings index or a fixed percentage.
The ABI definitions are complemented by an extensive range of conditions including coronary angioplasty, insulin dependent diabetes, chronic rheumatoid arthritis and respiratory failure. In addition, fracture cover is offered, which provides cash payments of between £600 and £2,100 depending on the nature of the fracture.
The plan extends the client benefit away from merely the issue of a cheque by including both the Best Doctors Service and access to various helplines. Cover is further enhanced by the inclusion of a buy-back option following a claim.
In an era when many buying decisions are driven by price a proposition based on quality, such as BUPA's Critical Illness Cover, is an essential tool to intermediaries who advise their clients rather than just provide them with the cheapest cover.
Nick Telfer, head of life and protection, Defaqto
