Legal & General Critical Illness Cover
L&G has introduced a number of changes to its existing CI plan. These include:
A new condition, spinal stroke, has been added. This takes the total number of full payment definitions up to 42.
The motor neurone definition is now classed as ABI+.
The plan has been updated to meet the latest ABI Statement of Best Practice on CI requirements. L&G now has 17 definitions which are ABI+.
L&G’s interactive online tool, AnatoME, has been updated to give advisers useful facts about the different illnesses the plan covers. L&G says this tool makes it easier for advisers to review its CI definitions, thereby ‘helping them to suggest the most appropriate product to their clients’.
In total, the plan now includes 42 full payment definitions.
Comment: L&G is the largest provider of CI policies in the UK, and in 2014 paid out £161m on CI claims, which is 16% of the total figure reported that year by the ABI. These latest changes are not earth shattering, to some extent bringing the plan into line with the latest ABI SoBP is more of a housekeeping exercise. However, L&G has gone further, adding one new condition and making another ABI+.
Many people will probably buy this plan confident they are buying from the market leader, which is a known household brand, and that they are comfortable that it will pay out of they need to claim. The plan doesn’t have to technically be the best or offer the widest cover – such issues can be academic and even subjective.
Plus points: Fully ABI SoBP compliant now; One new condition added; One definition improved to ABI+; Some marketing improvements too; The L&G brand is powerful and it is a deserved market leader.
Not so plus points: These are all relatively minor changes – little more than a housekeeping exercise; Some other providers may offer wider cover or a ‘better’ plan; As with all CI plans covers most but not all critical illnesses.
Website: http://www.legalandgeneral.com.
Rating (max 10): Innovation: 7. Overall: 8. Gold
Tags: CI; L&G