ProtectionSep 23 2014

L&G upgrades critical illness to remain ‘competitive’

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Legal and General has upgraded its critical illness policy in a bid to remain “competitive”, as it has not been looked at in 17 months, according to CI Expert.

According to Alan Lakey, director of CI Expert, it has been well over a year since L&G’s last set of improvements and “the market has moved considerably since then”.

The major changes relate to heart attack and stroke, which brings L&G into line with the likes of Ageas, Aviva and LV, Mr Lakey said, adding that alterations to multiple sclerosis and carcinoma in situ of the breast will also increase or accelerate claims paid.

Changes to existing critical illness for blindness mean that L&G has now followed Ageas, Friends Life, HSBC and Old Mutual Wealth in exceeding the Association of British Insurers model working by moving to a 6/60 Snellen score for visual activity.

The ABI wording is stricter than the clinical definition of ‘blind’ so this change will also result in additional claims being made, Mr Lakey said.

Carcinoma in situ of the breast, previously lobular carcinoma in situ (LCIS), was excluded, but the definition now incorporates all types of carcinoma in situ of the breast.

Consultants often offer LCIS sufferers the choice of electing to undergo mastectomy so as to reduce the prospect of future invasive cancer. The revised L&G definition would enable such clients to successfully claim, according to Mr Lakey.

For heart attack, L&G has removed the requirement for a specified level of raised enzymes or troponins. This transforms the claim paying potential back to pre-2007 days, when specific levels of troponins were not required.

For stroke L&G has, as per the industry trend to require for “persisting clinical symptons” has been lowered to “persisting clinical systems lasting at least 24 hours.” For cancer L&G has shed the exclusion of chronic lymphocytic leukaemia, unless histologically classified has having progressed to at least the earlier stage on the Binet classification system.

For deafness, like Old Mutual Wealth (formerly Skandia) and PruProtect, L&G has lowered its claim requirement from 95 decibels in the better ear, to 70 decibels. L&G has also changed its claim requirement for multiple sclerosis for “current symptons” to “where there have been symptons” which should reduce the delays associated with claiming under MS.

A spokesperson for L&G said the firm is committed to providing customers the most comprehensive cover, where it matters.

“We recognised that just under 90 per cent of all critical illness cover claims are for four conditions: cancer, heart attack, stroke and multiple sclerosis.

“Rather than imitate the current industry trend of adding rare and potentially complex conditions, we have extended the cover offered by these conditions to pay more of these claims that we receive.

“We have also made three other condition enhancements for blindness, deafness and carcinoma in situ of the breast. We have also launched AnatoME, our innovative, interactive critical illness cover definitions tool which makes it easier to understand our CIC definitions.”