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June 2018 Guardian: Term

Guardian is a new insurer (but an old insurance brand) that has soft launched in May 2018, with a view to rolling out its proposition to other advisers during 2018. Its first two products are:

Life Protection. A term insurance policy available to age 90 that also pays out on terminal illness.
Critical Illness Protection. Conventional CI cover that  pays the sum insured on diagnosis of a specified critical illness, on terminal illness or on undergoing specified surgery and can run to age 70.

CI and life cover are not offered combined, as Guardian says that can mean life cover ceases after a CI claim is made. So instead, a multi-policy discount applies.

Policies are available to UK residents aged between 18 and 65. Cover can be level, decreasing  (in line with a 5% repayment mortgage), or increasing in line with inflation. Instead of a lump sum, benefits can be paid as a family income benefit, with annual payments until the end of the term.

In addition, customers can add Children’s Critical Illness Protection and Fracture Plus Protection too.

Main features of the products include:

No general exclusions are applied. Instead, they are applied on a case by case basis.
Instead of long medico-legal definitions for stroke, heart attack and multiple sclerosis, Guardian pays out if a UK consultant says that event has occurred.
The cancer definition includes all malignant skin cancers – with no exceptions.
Terminal illness benefit applies the normal 12 month rule but also pays out on diagnosis of stage 4 cancer, motor neurone disease, Parkinson-plus syndromes and CJD, regardless of life expectancy.
Joint life cover is not available – again that could give rise to having no cover after the first death/event. Instead a multi-cover discount applies.
Every customer automatically gets premium waiver benefit at no extra cost – and with just a one month deferred period.
Reserved cover. Guardian underwrites for the full level of cover it can offer. The difference between that and what the customer has applied for is then available just on answering few simple health questions for 27 months.
Payout planner. This enables clients to contractually gift the life insurance benefit by nominating beneficiaries. Guardian records this so it can pay out benefits fast on death.
Children’s CI cover is a separate policy (so non –parents do not pay for cover they don’t get anyway). Cover can be from £10K to £100K and the cover can be added or removed at any time.
If Guardian improves its CI definitions, clients can have the new improved definition. In some cases that may incur a higher premium.
Decreasing mortgage cover uses a standard 5% interest rate plus a guarantee that the death benefit will repay the client’s outstanding mortgage.
Most rated clients still get guaranteed insurability.
When a claim is made a HALO service allows Guardian’s claims team to access a network of medical, legal and financial experts to help people who need it  - in most cases at no cost to the client.
Guardian Anytime offers up to four virtual GP appointments a year, plus physiotherapy, a second medical opinion and mental health support.

Comment: It’s good to welcome a new protection insurer but new insurers need to offer something different as well as attractive and keenly priced.

Guardian achieves this by taking a  different view in some very important areas. For example, its heart attack, stroke and MS definitions are a model of clarity and common sense, just requiring a UK consultant to confirm the event has happened.

There are no standard exclusions, so any that apply are set out and drawn to the customer’s attention. It’s the fine detail that appeals too – for example, premium waiver has long been a poor relation in protection. Insurers have priced it, underwritten it, excluded many and applied a(too long) six month deferred period. Guardian’s approach has been to include it free for everyone and to have just a one month deferred period.

The products bristle with such attention to detail – more than were have space to mention here. Some advisers and clients may still prefer not to pay for children’s CI cover or to insist on having joint life cover or life/CI combined, but Guardian’s stance on these issues will make sense for a great many more.

Plus points: A different approach – and especially on some small but important details; Individual life and CI cover with multi-policy discount; Higher children’s CI cover limit; Premium waiver free for all with just a one month deferred period; Simple key CI definitions;  Terminal illness benefit also pays in other situations; Reserved Cover; Payout Planner; Future improved CI definitions can apply retrospectively; HALO and other claims help.

Not so plus points: Guardian is a new company so has yet to prove itself; Not available to older customers; Some may prefer a more traditional approach e.g. having a joint policy; The CI definitions still run to many pages.

Website: www.guardian1821.com.

Rating (max 10): Innovation:  9. Overall: 9.5. Platinum

Tags: Life; Guardian