LV= Critical Illness Cover
Last reviewed by us In May 2014, LV= has now introduced further changes to its critical illness (CI) plan. In this latest round of changes, one new 100% condition has been added, and changes have been made to a number of existing definitions. In addition, the plan has been brought into line with the latest ABI Statement of Best Practice (SoBP) for CI.
The new condition is Parkinson Plus Syndromes. This has an ABI+ definition and also pays out 150% of the benefit if diagnosed under age 45. Changes have also been made to the definitions for:
Benign brain tumour.
Cancer.
Alzheimer’s disease (which includes dementia).
Coma.
Kidney failure.
Major organ transplant.
Motor neurone disease.
Stroke.
Traumatic brain injury.
Children’s cover.
In total the plan includes 42 conditions with 100% payment and 20 additional payments with varying payment levels and some 17 definitions are now ABI+. LV= says its plan is the only one in the market to include double accident benefit and to pay 150% of the benefit for neurological conditions.
Comment: According to CIExpert (http://www.ciexpert.co.uk) LV= is the last of the major insurers to bring its CI policy into line with the requirements of the 2014 ABI SoBP on CI. LV+ remains a leading CI provider, although these changes are relatively minor on their own.
That said, LV= is likely to remain a major CO player, even though competition is rising both from existing players and from new providers too. As with all CI policies, we have concerns over the complexity of the plans and look forward to the time when the market moves to a simpler and more comprehensive structure for CI. That still does not look to be imminent though, so in the meantime, this plan remains a major competitor in the sector.
Plus points: One new 100% condition added, taking the total now to 42; Improvements made to other definitions; Comprehensive CI cover that also includes helplines, counselling and member benefits; Now fully compliant with the 2014 ABI SoBP; Leading CI provider .
Not so plus points: As with all CI plans, strict medico legal definitions (and lots of them…) make understanding what is and is not covered very complex; Whilst paying out 150% of the sum insured on diagnosis of six neurological conditions under age 45 will help those affected, other conditions can also give rise to the need for a higher benefit; Double accident benefit is a bit gimmicky (why would beneficiaries need double the sum insured if death is caused by an accident rather than by illness?).
Website: http://www.lv.com.
Rating (max 10): Innovation: 7. Overall: 8. Gold
Tags: CI; LV=.