HSBC Life UK is broadening its critical illness (CI) cover to include less advanced prostate cancer and Parkinson’s Disease and adding cover for seven types of pregnancy complications.
The updates form part of a raft of changes to the insurer’s CI cover which include:
- Enhanced critical illness definitions across both CI Core and CI Plus products aimed at providing greater clarity on what is covered, while also broadening protection to include improved cover for conditions such as less advanced prostate cancer and Parkinson’s Disease.
- Cover for seven types of pregnancy complications on the CI Plus product with a payment of £5,000 on seven different types of complication, including stillbirth after 24 weeks’ gestation, disseminated intravascular coagulation (DIC) or eclampsia and ectopic pregnancy with surgery to remove a fallopian tube. The insurer said this enhancement was guided by customer feedback, with 68% of those surveyed by HSBC Life saying it was important or very important to include.
- Top-up payments. Policyholders can benefit from a top-up payment feature, available until age 60 on the CI Plus product. Should a claim be made for one of nine listed conditions- including motor neurone disease and Parkinson’s – an additional payment is provided. This will be either £200,000 or the sum assured (whichever is lower), helping to recognise and support the additional costs policyholders may face following a diagnosis.
- Accelerated pay outs are available across CI Core and CI Plus products when policyholders are placed on the NHS waiting list for qualifying surgeries. This means policyholders can claim as soon as they join the waiting list, rather than waiting for the procedure itself.
In July, Chesnara entered into an agreement to acquire HSBC Life (UK) Ltd for £260m.
Completion is expected in early 2026, subject to customary regulatory approvals.
Helping more people facing difficult health diagnoses
Richard Waters, head of protection distribution at HSBC Life UK, said: “We have considered feedback and insight from advisers, customers and industry experts and developed a series of enhancements that ensure we can financially assist more people who are facing difficult health diagnoses.
“According to research, 45% of advisers said their clients would be more likely to purchase critical illness cover if a pay out was made as soon as they were added to the NHS waiting list. Furthermore, 60% of advisers said if additional/severity payments were paid quickly enough to pay for private treatment, their clients would be more likely to buy critical illness cover.
“Lastly, 67% of advisers said if their clients received a payment quickly enough to pay for private treatment for early-stage cancers, they’d be more likely to buy critical illness cover.
“Our critical illness pay out rate of 94.4% last year highlights our commitment to paying claims and our latest enhancements will make customers more financially resilient.”
Impressive series of improvements
Providing his take on the changes, Alan Lakey, director at CIExpert, said: “These improvements are significant in that they extend the claim potential due to the NHS waiting list coverage and they also reflect the long-term financial impact of suffering certain conditions prior to age 60.
“The introduction of pregnancy complications, that also extends to the life insured’s partner, reflects the impact to the family as opposed to the individual.
“Our Critical Thinking research identified concerns amongst consumers about delay in treatment from the NHS, and the introduction of accelerated payments for less advanced cancers is an innovation that will provide significant value for clients going forward as individuals are increasingly considering private treatment to avoid long delays and the potential for their health to deteriorate further whilst they are waiting.
“An impressive and well-thought-out series of improvements which will push both plans up the quality table.”