24th January 2008

CI Definitions Made Clearer

It is clear from mails received that the range of conditions under CI cover continues to cause confusion and uncertainty.

A mail from Tim Rainey raises some very good points.

From: Tim Rainey [mailto:trainey@avoncourt.co.uk]
Subject: Critical Illness Definitions

It seems to me a mine field deciding which provider offers the most cost effective CIC definitions, be that the largest coverage or the best definitions; some clients would prefer to have a more general coverage than whilst others would prefer better definitions within what is covered. Is there anywhere that provides this specific up to date information?

Secondly, when will the protection market get together and simplify the application process; by this I mean one application form generalised across the market. If as an adviser you correctly recommend company A for their PHI, company B for their CIC and company N for their Life Cover, this means 3 data capture forms with differing questions etc. Given the relatively small number of re-insurers compared to insurers I would have thought this possible if not sensible.

Tim Rainey Cert PFS, Cert CII (MP)

Aegon have commented that by asking slightly different questions in an application form, Providers can drive out small differences in the underwriting elements. This is why some providers are able to offer different underwriting limits than others, different prices, product features etc. Providers created menu style plans that allow clients to select a number of benefits as you suggest below by only filling in one application form, one direct debit, one declaration etc.

Click here to see a useful comparison chart regarding who provides what types of CI cover.  (Link opens in a new window)

Scottish Widows observe that with regards to the common application form, this has been discussed on a number of occasions at various industry forums (FTRC and ORIGO). It is constantly under review by the key players within this market sector.

This link provides details of Scottish Widows CIC coverage.  (Link opens in a new window)

These links to Scottish Widows Policy Provisions gives more specific information on the coverage of CIC Protection Cover (Link opens in a new window)

Mortgage and Business Cover (Link opens in a new window)

More information can be located on Scottish Widows Adviser Extranet

Valerie Bruce: MSc E-Business
E-Business Manager, E-Business, Customer and Brand