Zurich UK has expanded its critical illness cover to give policyholders more flexibility at different stages of life, with one commentator saying it takes CI to ‘a whole new level’.
As part of its ‘modular’ approach, Zurich has added a new layer of critical illness cover and de-coupled child cover from adult cover. In addition, it has introduced an optional pregnancy and early-childhood cover.
The insurance giant said its enhanced proposition will allow advisers to craft individual solutions to suit customers, with packages of cover that can be added or removed.
As part of its transformation, Zurich has introduced a third level of cover ‘Critical Illness Enhanced+’, designed for clients who want maximum cover and pay-out levels. The maximum payment for additional payment conditions has doubled from £25,000 to £50,000 cover, while the maximum payment for the most severe conditions has jumped from £100,000 to £200,000.
The new proposition is in addition to Zurich’s Critical Illness cover and Critical Illness Enhanced cover, formerly known as ‘Select.’
Zurich is also providing policyholders the option to add children’s cover to their Personal Protection Policy. This comes in two forms; Children’s Cover, which includes children’s critical illness and a new hospital stay benefit, and ‘Children’s Enhanced Cover’ for those who want more comprehensive protection. The latter builds upon Children’s Cover by providing the same critical illness cover for children as Zurich’s Critical Illness Enhanced option and includes a new child permanent dependence benefit.
Finally, the insurer is offering customers an optional ‘Pregnancy and Early Childhood Cover’, providing critical illness protection for conditions such as cerebral palsy, craniosynostosis, cystic fibrosis, Down’s syndrome, Edward’s syndrome, hydrocephalus, muscular dystrophy and spina bifida amongst others. It also covers for pregnancy complications including late-stage miscarriage, still births and birth defects.
Louise Colley, director of retail protection at Zurich, said: “Our enhanced approach to critical illness will allow advisers to offer crafted cover to customers at any stage in life. The FCA’s new Consumer Duty regime focuses the mind on creating solutions that meet customers’ needs more than ever before, rather than off-the-shelf products that may not always be suitable.
“With the ability for customers to add and remove elements of cover throughout the life of the policy, this is the only critical illness product that policyholders will ever need. The peace of mind this will offer customers, combined with the simplicity it offers to advisers, makes this an offering we are incredibly proud to share with the market.”
Commenting on the launch, Adam Higgs, head of Products at Protection Guru, says: “Zurich have taken flexibility to a whole new level with this new launch. We have seen insurers offer children’s critical illness as a standalone policy previously, however having cover for congenital conditions, pregnancy complications and birth defects as an option and separate from adult or child cover is unique.
“The changes offer advisers the ability to provide their clients with cover that fits their situation and budget and to flex this as their life changes. As such clients only need to pay for the protection they need without having to pay for the elements they cannot claim on.”
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