AXA PPP healthcare Cancer CashCover
AXA PPP’s new plan pays a cash lump sum if diagnosed with a defined cancer. It also gives customers access to a 24/7 telephone support service from AXA’s dedicated cancer nurses. Children under 18 are also covered free under the plan.
Three benefit levels are available, with the plan paying out £15K, £30K or £60K on diagnosis, with a three month initial qualifying period. If the customer has a family history of cancer at the time of application, the main cash benefit of the plan is cut by 50%. Early stage cancers and benign tumours (including benign brain tumours) are excluded.
The plan also pays in full for licenced cancer drugs that are not funded by the NHS, where that is recommended by the customer’s cancer specialist. Where appropriate the drugs can be administered at the customer’s home. AXA says this benefit could be worth up to £90,000. However, the effect of the drug must be to shrink the cancer, stabilise it or slow the spread of the disease.
The plan also pays out £1,000 on first diagnosis of non-melanoma skin cancer.
Diagnosis must be made before death, but there is no minimum survival period, unlike on some standalone critical illness policies.
The plan is available from age 18 to age 73, with renewal being offered up to the customer’s 80th birthday.
Someone age 30 at outset would pay £5.99 a month for £15K of cover, £7.99 for £30K and £9.99 for £60K of cover.
Comment: One of the big plusses of this plan is that it is simple to buy, with no medical questions or questions about family history. Instead, pre-existing conditions are excluded and there is an initial 90 day waiting period before benefits become payable. In addition, the plan pays for necessary licensed cancer drugs that the NHS does not finance.
Unlike many standalone critical illness policies, there is no survival period, although the customer must be alive when the diagnosis of cancer is made. And children are covered free.
That’s pretty much it so far as the good news goes though. The plan does not cover any of the other illnesses a critical illness policy would normally cover – even benign brain tumours. There is a choice of just three sums insured and no mention of using trusts in the literature we read. Premiums are subject to IPT and, being an annually renewable plan, subject to IPT. If you have a family history of cancer, the main cash benefit is halved too. Moreover, if you already have PMI cover, that may well pay for non-NHS funded licenced cancer drugs too.
In conclusions, we can see how this plan will appeal to people scared of the C word (OK, that’s probably most people) and, in some circumstances, the plan’s cover and simplicity will have appeal. But the downsides are just too great and why would anyone only want to be paid out only if they get cancer and not some other equally serious life-threatening condition?
Online information is generally good – even if AXA PPP does not know what NICE stands for!
Plus points: Simple to buy and understand; Benefits payable after just a 90 day initial waiting period; Smaller payment on skin cancer; Also pays for non-NHS funded licenced cancer drugs; Good support services; No medical questions; Children covered free; No post-diagnosis minimum survival period.
Not so plus points: Only covers cancers and not other, equally life-threatening critical illnesses; Sum insured halved if family history of cancer; Terms can be changed at renewal; Premiums increase with age and are subject to IPT; Only three sum insured levels available with a maximum benefit of £60,000 – below many people’s mortgage liability; No mention of trusts in the literature.
Website: http://www.axappphealthcare.co.uk.
Rating (max 10): Innovation: 8. Overall: 5. Bronze
Tags: Other; AXA PPP healthcare