AIG Life has revamped its critical illness (CI) protection, including adding severe mental health cover to its range of products.
The firm made more than 40 enhancements to its cover, also adding early stage low-level cancers, sepsis and certain pregnancy or childbirth-related conditions.
The changes are part of the insurance company’s drive to “make definitions simpler" and increase payouts to customers.
Martin Windle, head of strategy and innovation at AIG Life, said: “Our decision to include severe mental health, recognises that the human impact of mental illness is every bit as severe as the traditional physical conditions that critical illness insurance covers.”
Mr Windle said the proposition aims to offer customers the time and capacity to assess their next steps in life and is built upon AIG Life’s “start from yes” philosophy.
Emma Thomson, head of customer care at protection intermediary LifeSearch, said: “It is great to see CI covering a condition that is claimed on a lot under income protection."
But she cautioned only severe cases of mental health would be covered by the policy.
She said: “Those wanting full cover for potential mental health issues should consider taking income protection as well.”
Kevin Carr, managing director at Carr Consulting & Communications, said the gap between critical illness and income protection was closing, especially with the ongoing development of payments based on the severity of the condition.
He said: "The challenge for the industry is that conditions such as cancer, a heart attack and strokes are factual events that can be easily proved whereas mental and muscular issues are not quite the same.”
AIG Life’s critical illness cover now offers payouts in 102 listed circumstances including eight new pregnancy conditions and 10 child-specific conditions.
Sue Helmont, head of marketing at AIG Life, said the value of children’s payments has increased to the lower of £35,000 or 50 per cent of the sum insured in recognition of the difference it can make to families.
Children’s critical illness additional payments have also increased from 25 per cent £25,000 to 50 per cent £35,000 and child death benefit can now be paid out early in the event of a terminal illness diagnosis and has increased to £10,000.
AIG Life also offers critical illness customers access to the Best Doctors second medical opinion service and children’s bereavement charity Winston’s Wish at no extra charge.
Ms Helmont said: “We know critical illness insurance is an awkward customer conversation for financial advisers. We’ve designed the cover with everyone in mind so all the elements work together to deliver protection you can trust and so that clients trust advisers in return.”
rachel.addison@ft.com
