Aviva Critical Illness Cover
Aviva has enhanced its Critical Illness+ and Life Insurance+ with critical illness products, to cover more conditions. The enhancements all apply to the upgraded options on its products and came into effect from 14 October.
Upgraded children’s benefit (which is available as part of the critical illness policy), now covers three new conditions:
Diabetes mellitus type 1.
Brain abscess when undergoing a defined treatment.
Less severe third-degree burns meeting defined criteria.
Parents of children diagnosed with these conditions will receive a fixed £25,000 payment.
Children are now covered from birth up to their 22nd birthday, whether they are in full time education or not. Previously, children were only covered up to their 18th birthday, or 21st birthday if in full time education.
For adults, the upgraded critical illness benefit will now cover two new conditions:
Brain abscess when undergoing a defined treatment, which will be eligible for full payment.
Less severe third degree burns meeting defined criteria, which will be eligible for the lower of £25,000 or the cover amount.
Also, customers who need to stay in hospital for more than seven consecutive nights now receive a £100 Hospital Benefit per night, from the eighth night to a maximum of £3,000. The policy also now no longer covers HIV.
Comment: Aviva says the enhancements have been added in recognition of the serious impact these conditions can have on the day-to-day life of individuals and their families, as well as feedback from advisers and customers.
The changes are relatively minor, but all further enhance Aviva’s CI offering. The hospital benefit is also useful and illustrates how CI plans can go beyond just the big headline benefits.
Removing HIV will be seen as a backward step by some, but in reality few insurers have paid out on HIV anyway. CI Expert says that’s mainly because the claims requirements are severe and are seen by some as discriminatory anyway. In fact HIV is no longer on the list of ABI model definitions, so we may expect other insurers to drop HIV as a condition too.
Plus points: Further enhancements that benefit customers and their families; Children’s cover enhancements will particularly appeal to parents and the fixed £25K benefit is simple; Although HIV is no longer covered, few insurers paid out under this definition anyway.
Not so plus points: Further complication in that more conditions = more medico legal definitions in the T&Cs; HIV no longer covered.
Website: http://www.aviva.com.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: CI; Aviva