HSBC Life has made changes to its critical illness products, including children’s cover, adding payment conditions and definitions of five CI conditions.
The provider has two critical illness policies, Core and Plus, with the majority of changes being made to its Plus policy.
Eight child-specific conditions have been added to the Plus plan - atrial/ventricular septal defects, cerebral palsy, cystic fibrosis, type 1 diabetes, Down’s syndrome, hydrocephalus, muscular dystrophy and spina bifida.
Further changes to the Plus product include an extension of the children’s age definition to cover from birth to age 23, and an enhanced children’s benefit amount, which pays the lower of £50,000 or 50 per cent of the policy sum insured.
The plan has an extra 11 full payment conditions, and 37 additional payment conditions that pay the lower of £50,000 or 50 per cent of the sum insured.
Changes to the Core plan include two additional payment conditions (less advanced cancer of the breast or prostate), which pay the lower of £25,000 or 25 per cent of the policy sum insured.
Mark Hussein, CEO of HSBC Life UK, said: “This is a redesign of our critical illness contract focusing on increasing the conditions and quality of the cover we provide for our customers.
“The HSBC Critical Illness Plus product is now showing as one of the highest plans within the CIExpert website and is available to our customers through IFAs and aggregators only.”
HSBC has also revised its definition wording on five conditions to make them more "inclusive".
Condition | What has changed? |
Deafness | The claim requirement has been improved from 95 decibels to 70 decibels in the better ear |
Benign Brain Tumour | Both conditions now include treatment by radiotherapy or chemotherapy |
Benign Spinal Cord Tumour | |
Motor Neurone Disease – resulting in permanent symptoms | All six of the main Motor Neurone Diseases are now included with Kennedy’s Disease and Spinal Muscular Atrophy being added |
Third Degree Burns | Coverage has been extended to include 20 per cent of the face or head |
Alan Lakey, director at comparison service CIExpert, said: “[The] changes elevate the critical illness plus plan into the top echelon of quality plans and it’s gratifying to see insurers increasingly competing on quality rather than the tried and trusted methods of adding yet more (and sometimes pointless) conditions or chasing premiums to the floor.
“The impact of these changes is to elevate the critical illness Plus plan towards the top of the quality tables and advisers who focus on quality need to give due consideration to the plan.”
Customers also receive access to HSBC Life online health services, which will provide new and existing customers with value-added health services. The benefit is free to HSBC Life policyholders who have purchased their policy through an external intermediary.
Critical illness core policyholders will have access to remote GP services and a second medical opinion. Plus policyholders will also have access to mental health support, physiotherapy and a health MOT.
chloe.cheung@ft.com
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