Legal & General Children’s Critical Illness Extra
Legal & General’s new Children’s Critical Illness Extra (CCIx) cover is a paid for, non-underwritten option that provides enhanced features for parents who want wider CI cover for their children. CCIx pays 50% of the basic parent’s cover, up to £25,000, for a valid claim. Children are covered from birth until the age of 22, irrespective of whether they are in full-time education. There is no limit to the number of children a parent can claim for.
In addition to all the original benefits included in its Children’s Critical Illness Cover, CCIx also includes a new children’s terminal illness benefit. This provides cover of £10,000 if the child is diagnosed with an advanced or rapidly progressing incurable condition, with a life expectancy of less than 12 months as determined by the hospital consultant and L&G’s medical officer. Twelve additional illnesses are covered under CCIx, and these include cystic fibrosis, Crohn’s disease, spina bifida, Down’s syndrome and Type 1 diabetes. In total, CCIx covers 51 conditions, up from 37 on standard cover.
L&G has also enhanced its standard Children’s Critical Illness Cover, with new services:
• Children are now covered from age 30 days and the maximum age of cover is extended from 18 (or 21 in full-time education) to a blanket age 22.
• The survival period is reduced from 14 to 10 days.
• The Child Funeral Benefit is increased from £4,000 to £5,000.
Standard Children’s Critical Illness Cover continues to be included when a customer takes out a Life with Critical Illness Cover policy. Also included in children’s cover is a £5,000 Child Accident Hospitalisation Benefit, Childcare Benefit of up to £1,000 if the main policyholder suffers from a specified critical illness, and Family Accommodation Benefit of up to £1,000 in the first three months following diagnosis.
Comment: Children’s CI claims are now the fourth most common CI claim and, to any parent, having cover for their children is one of the big benefits of CI cover.
L&G’s approach has been to offer the option of wider cover for just a small premium increase, and we think that will be popular with many parents. For non-parents, there is no option to delete the benefit, which is disappointing, as they can never benefit from it.
Plus points: An option to widen children’s cover at just a small extra cost; No additional underwriting; Enhancements to the standard children’s cover too.
Not so plus points: More expensive if added (albeit not by much); Non-parents still have to pay for basic children’s cover they can never benefit from.
Website: http://www.legalandgeneral.com.
Rating (max 10): Innovation: 8. Overall: 8. Gold
Tags: CI; L&G