ProtectionApr 8 2016

Unum rolls out group CI plan to selected advisers

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Unum rolls out group CI plan to selected advisers

Employee benefits provider Unum has launched a critical illness plan for brokers targeting the gap in the group CI market.

Simplicity CI will initially be available through a limited number of intermediaries selected for their shared aim of working with employers who have not yet thought about such cover.

Unum said the offering is designed for workforces of 50 or more and is hassle-free to set up, avoiding complex pre-acceptance risk assessment both at the policy and member level.

It also seeks to allay employer concerns policies may not payout because of a discovery at claim of a significant medical history, something Unum said has significantly restricted CI growth over the years.

Unum’s head of proposition development Andrew Potterton said the policy covers the 10 most common reasons for claiming against CI cover.

To reduce complexity further, employers can choose the same cover amount they wants to buy for all employees (between £10,000 and £60,000), with an option for a simple flexible benefit basis for employees to top up a basic level of employer-funded cover (up to the same £60,000 ceiling).

Mr Potterton said: “Although members clearly can’t claim for a heart attack they had before joining, they’re covered if they have another one meeting the criteria once the policy is up and running.

“Cancer history, likewise, doesn’t prevent a claim for an insured event, whether it’s a recurrence of a cancer that was thought to have gone away, or a new one. With this approach, clearer expectations may be set with staff as current serious health conditions that could lead to a CI claim are more likely to be known to the employer.

“It’s not too late for intermediaries ready to grasp this new to market opportunity to get on board, although space is limited,” he added.

Sebastian van Mook, financial adviser at Abacus Associates, agreed that generally not enough people have CI cover, either because they are not aware of it or are put off by the cost.

“Anything that can be done through an employer as a default position is a positive step, however the cover is going to be limited in its options and ultimately somebody has to pay for it so it’s likely to be the employer.

“Is it really going to improve coverage of CI in the marketplace? Questionable.”