What do a 25-year-old male suffering from Crohn's disease, a 35-year-old female diagnosed with a pulmonary embolism and a 32-year-old male who experience a detached retina all have in common? Simple. They all received a Serious Illness Cover payment for a condition that isn't paid by any other provider in the market.
As verified by Defaqto, Vitality SIC covers all heart attacks, strokes and more cancers[1] - and significantly more conditions3 - than any other insurer. Here, we unpack five facts about a product which provides comprehensive severity-based coverage designed to stay in place for longer.
1. Your clients are more likely to receive a pay-out on Serious Illness Cover[2]
Rather than paying out an arbitrary amount, Vitality SIC pays out based on the impact each condition will have on lifestyle. Paying out appropriate amounts for less severe conditions allows Vitality to offer more comprehensive coverage over time, rather than just a full lump sum for a more severe diagnosis later down the line.
2. One in 12 claims for SIC were for conditions only covered by Vitality
Rather than paying out a set amount for a limited number of conditions, Vitality's Serious Illness Cover pays out a severity-based payment across a broader set of conditions allowing more comprehensive cover and increased likelihood of claim. One in 12 of all claims paid last year were for conditions only covered by Vitality[3].
3. Pulmonary Embolisms was the most common unique condition last year
Pulmonary Embolisms was the most claimed upon unique condition in 2020. This was followed by moderately severe inflammatory bowel disease without the need for surgery (such as Ulcerative Colitis and Crohns Disease) and surgery for cardiac arrhythmia (irregular heartbeat)3. It wouldn't be unreasonable for most people to expect to be covered for one of these conditions. Even if they were expecting a pay-out, they would only get one if they had Vitality Serious Illness Cover
4. Almost 10% of SIC claimants had claimed previously on their plan
With SIC, any plan can be claimed on an unlimited number of times, up to three times the level of the initial cover selected. This helps ensure cover stays in place for longer, while preventing members from becoming financially vulnerable if an illness recurs or they suffer an unrelated secondary condition. Last year, one in 11 claimants had claimed previously on their plan and one in 20 were making their third claim or more2.
5. Serious Illness Cover can pay out multiple times for cancers, heart attacks and strokes
Many advisers understand the value of severity-based cover - on the basis that smaller, sequential payments over time, based on impact provide more comprehensive coverage that stays in place for longer. This is important given that one in five cancers reoccur[4] and one in four strokes[5] are repeats. One in five people who have suffered a heart attack will be hospital within a year with another one[6]. These conditions will still have a financial impact on clients and therefore should be protected against.
Why Serious Illness Cover? Find out more about the unique benefits on offer for your clients
A version of this article originally appeared on Vitality Insights Hub
This post was funded by Vitality
[1] Defaqto verified Competitor Comparisons, Nov 2019.
[2] Defaqto, Apr 2021
[3] Vitality Claims & Benefits report 2021
[4] National Cancer Institute, accessed 2021
[5] NICE guidelines, May 2019
