April UK Lifestyle Protector
April UK has launched a new sickness and accident plan, called Lifestyle Protector. The monthly renewable plan includes:
No medical underwriting at outset. Instead, a two-year moratorium and a simplified application process replaces the need for upfront underwriting.
No proof of earnings is required, either at point of sale, or as part of the claims process.
There are no premium age increases. So, the age at which the customer takes out the policy is the age on which the policy premium will always be based, and does not increase as they get older.
There are no exclusions linked to occupation or sporting activities. The plan is available to anyone employed for a minimum of 16 hours a week, or who are self-employed, regardless of their occupation. Age range is 18-64 at outset and customers must be resident in the UK, Isle of Man or Channel Islands.
Customers can choose an insured benefit of between £300 and £1,500 a month. This can be paid for up to 12 months, with back-to-day-one waiting period choices of either 14 or 30 days.
Hospitalisation benefit of £30 to £150 a day if hospitalised for more than 48 hours is automatically included. The benefit paid is 10% of the chosen accident and sickness monthly benefit and is payable for up to 30 days a year.
The plan includes free access to the Best Doctors service.
Optional add-ons include £10,000 of critical illness cover or life insurance. Monthly unemployment benefit can be added (unless self-employed or not having been working continuously for 12 months before the policy start date). The critical illness conditions covered are cancer; coronary artery by-pass grafts; heart attack; kidney failure; major organ transplant, and stroke.
A 60 day initial exclusion period applies for the sickness and unemployment benefits. Other exclusions include self-inflicted conditions, HIV/AIDS etc, normal pregnancy and drug addiction/alcohol abuse. Backache, whiplash and any emotional or physical condition, depression, stress or mental disorder are excluded unless there is clear medical evidence or under specialist psychiatric care. Pre-existing conditions are excluded until symptom and treatment free for two complete years.
Premiums start at £2.29 a month per £100 of monthly benefit.
Comment: Annually or monthly renewable sickness and accident cover is a popular alternative to long term income protection (IP). This plans pays benefit for up to 12 months, covers all occupations, and premiums don’t rise with age. Moreover, hospitalisation benefit is built-in and customers get access to the very useful Best Doctors service too. At extra cost, customers can add unemployment cover, to take the plan up to full ASU status, and can also add £10K each of life and/or critical illness cover. The latter is quite basic, but it’s easy to buy.
Compared to IP, such plans have two major disadvantages. The first is that cover or premiums can change at just 30 days’ notice; the second is that premiums attract Insurance Premium Tax (IPT) which, now at 9.5%, makes a difference. That said, it’s not often that insurers have increased their premiums in the past and all general insurance is subject to IPT – it’s just another cost and the bottom line anyway is always how competitive the premium is compared to the alternatives.
Overall this is a good plan of the type and if it offers what you are looking for, is certainly worth considering.
Plus points: Accident and sickness cover that’s simple to buy and understand; Includes hospitalisation benefit and access to Best Doctors; CI, life and unemployment cover can be added at extra cost; Premiums don’t go up with age; Covers all occupations.
Not so plus points: Maximum benefit period just 12 months; Cover and premiums can be changed at 30 days’ notice; Compared to long term IP, premiums are subject to IPT; Cover limits are relatively low.
Website: www.april-uk.com.
Rating (max 10): Innovation: 7.5. Overall: 7. Silver
Tags: ASU, April