ProtectionMay 18 2015

Aegon makes it easier to claim on protection policies

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Aegon makes it easier to claim on protection policies

Aegon UK has updated its multi-benefit proposition for both personal protection and business protection.

The changes include improved definitions, an increase in the level of cover and extending age limits to make sure the protection products remain flexible and competitive.

On the critical illness side, the changes include a focus on the most common claims - cancer, heart attack and multiple sclerosis - and simplifying the heart attack definition by removing the need for specified ‘troponin’ levels, making it easier to claim.

Aegon has also removed the need to see three continuous months of symptoms for multiple sclerosis and introduced a carcinoma in situ of the breast definition - an early form of breast cancer - to replace mastectomy.

This is an additional critical illness benefit which pays 25 per cent of the benefit amount, over and above the original benefit amount, up to a maximum of £25,000.

In terms of income protection, the firm has increased the age limit of cover from 65 to 70 and increased the sum assured from £130,000 to £150,000 for individual cover only.

It also introduced an income promise, to protect the customer against a drop in income after the policy has started, whilst removing all standard exclusions.

As part of the changes, a joint life separation option has been introduced and all family income benefit policies now offer guaranteed rates.

Speaking to FTAdviser Dougy Grant, protection director at Aegon UK, said: “Last year we targeted wealth advisers, who don’t traditionally offer a great deal of protection, and that resulted in a 75 per cent uplift in sales from that section of the market.

“We’re going to go out and promote these changes with adviser education videos, a full digital push and roadshows,” he added.

Aegon’s critical illness policies now provide cover for 53 illness definitions, 17 definitions exceed the ABI’s standard definitions.

Their personal and business protection menus allow customers to shape protection policies according to their needs, combining up to five main benefits in one online policy, including life protection, critical illness protection and income protection.

peter.walker@ft.com