Friends Life Protect+
In its latest round of updates to its critical illness insurance (CI) plans, Friends Life (now part of Aviva) has added a first to market benefit called Extra Care Cover.
Extra Care Cover pays a cash lump sum of £50,000 and is in addition to the plan’s main sum insured. The benefit pays out where the customer either:
Meets the CI definition for loss of independence (or is diagnosed with dementia; Parkinson’s disease or motor neurone disease under age 50), or
Is diagnosed with locked in syndrome, permanent vegetative state or minimally conscious state before the first anniversary of meeting the definition for a critical illness or total permanent disability, or
On the first anniversary of meeting the definition for a critical illness or total permanent disability suffers from:
−permanent severe heart failure; or
- permanent loss of independence and the total and permanent loss of the ability to perform routinely at least three activities of daily living.
Comment: Extra Care Cover is a sort of super TPD in that it is only paid in the most serious of circumstances. It pays a fixed sum regardless of need, at a time when the customer’s family or friends are likely to be facing very difficult times and where extra money is likely to be more than just helpful.
Should or could it be more or less? Yes, it could, but we think Friends’ approach of keeping it simple has great merit in the same way that children’s benefits should also be kept as simple as possible.
The benefit is also another example of CI insurers now looking to present a warmer more caring face to their customers – this benefit is being paid to people whose quality of life has been most severely hit and who will get their plan’s full sum insured anyway. It suggests that insurers care and that’s an important change now underway in the CI sector. Most CI benefits are ‘cold’ – you suffer x we pay £y. But both third party benefits and benefits such as Extra Care Cover are showing a more compassionate side too. Given the general mistrust of insurers on claims, that has to be a good thing.
Plus points: Additional ‘warm’ benefit that gives additional money to those likely to be in most need; Simple to understand, with no choices to have to make; Another benefit on what is already a well-regarded plan; Should help raise trust in insurers.
Not so plus points: Some may prefer a larger or smaller sum and/or for it to be paid out in different circumstances – but that would add to the complexity and could actually put off potential customers;
Website: www.friendslife.co.uk.
Rating (max 10): Innovation: 9. Overall: 8.5. Gold