PruProtect Serious Illness Cover plan
PruProtect announced the latest evolution of its Serious Illness Cover plan on 21 October.
The main changes are adding eight new conditions, seven of which are unique in the UK market. They are:
• Lumpectomy for ductal carcinoma in situ of the breast (DCIS).
• Carcinoma in situ of the oesophagus—requiring surgery.
• Severe inflammatory Crohn’s disease.
• Encephalitis.
• Craniotomy.
• Guillain-Barré syndrome.
• Spinal tumours.
• Pemphigus vulgaris.
PruProtect says that it now covers over 100 conditions with its Primary Cover and 161 conditions under its Comprehensive Cover version. Seventeen of its definitions also now exceed the ABI (Association of British Insurers) standard definition. Indeed, as part of its changes it has also introduced a number of enhancements to some of its other conditions, including heart attack.
Where a cancer exclusion is applied, the premium rate will be reduced accordingly, reflecting the fact that the customer’s cover is not as wide as it would otherwise be.
As well as applying to all new plans, the changes are also being applied to existing plans. The changes took effect from 23 October.
The plan itself is effectively a critical illness plan that pays out on the severity of the condition and offers Vitality points to actively encourage customers to adopt healthy lifestyles. The company reports that sales in the first half of this year were, at APE of £11m, up 98% on the same period of 2009. It now has around 36,000 policies.
Plus points: The new changes mean even wider cover than before, and all changes are also being introduced to improve existing plans too; Reducing premiums where an exclusion applies (e.g. on cancer) is a very positive step.
Not so plus points: Although PruProtect can claim to cover more conditions than any other critical illness insurer, its plans are also, by definition, more complex; That is not so much a criticism as a recognition that intermediaries need to take the plan seriously (sorry about the pun...) and ensure they are familiar with its complexities before they recommend it; There is also still no overall ‘catch-all’ benefit, although the philosophy of making improvements retrospective is in itself a very positive development.
Website: http://www.pruprotect.co.uk.
Rating (max 10): Innovation: 8. Overall: 8. Gold.