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November 2019 Cignpost: Term

Cignpost is a new provider offering three types of term insurance:

Level.

Increasing. Cover increases by 3% a year, while premiums rise by 3.75% pa.
Decreasing.  Designed to pay off an outstanding mortgage or loan with an interest rate of 8%.

Age range is 18 to 54 at entry and the maximum expiry age is 64, with terms available from five years to 40 years. The sum insured is paid on death or diagnosis of a terminal illness during the policy term. Death due to suicide is not covered during the first 12 months of the policy.

Customers can also add critical illness cover. This pays out on:

Dementia including Alzheimer's disease - resulting in permanent symptoms.

Blindness – permanent and irreversible.
Cancer – excluding less advanced cases.
Heart attack – of specified severity.
Stroke – resulting in permanent symptoms.
Third degree burns – of specified severity.
Traumatic brain injury – resulting in permanent symptoms.

In addition, CI cover pays out the lower of £25K and 25% of the full CI sum insured for low-grade prostate cancer or carcinoma in situ of the breast.

CI cover can only be added up to age 49 at outset and the maximum expiry age is 59.

Comment: Term insurance is the simplest of protection products, often being bought on price alone. Cignpost’s plan maintains that simplicity, also paying out on terminal illness.

In addition, customers can also add CI cover – albeit it just covers seven medical conditions.   

In practice, Cignpost’s price competitiveness will be a key determinant of sales success.

Plus points: Simple term cover; Optional CI cover.

Not so plus points: Maximum expiry age is below State pension age; Limited range of terms; Optional CI cover just includes seven conditions.

Website: http://www.cignpost.com.

Rating (max 10): Overall: 7.5. Silver

Tags: Term; Cignpost