Advisers should consider breadth of coverage, pay out amounts, gender specific risks and children’s cover when determining whether critical illness policies offer fair value.
This is according to Natalie Mayne, creative director at CIExpert (pictured), in her address to an online audience at ProtectX9 yesterday morning, who explained when considering fair value, there are a few key aspects that can make a real difference.
Breadth of coverage
“Firstly, how broad is the condition coverage?” Mayne said.
“Some policies cover the basics while others go much further – offering a wider range of full payment conditions as well as additional severity payments.
“Helping clients understand the extra value they get with a quality policy can make all the difference.”
Pay out amounts
But Mayne added it is just as important to understand how much they will actually get paid out.
“The amount paid out for additional severity payments varies considerably across policies – making it an important factor in assessing value,” Mayne continued.
“Understanding these differences helps clients see how much financial support they could receive depending on their diagnosis.”
Gender specific risk
A further important area to consider, Mayne maintained, is gender specific risk.
“Aligning their choice of policy with gender specific risk – some conditions are more common in men, others in women,” Mayne continued.
“Yet policies vary in how well they cover those risks.
“Taking a gender specific approach can help ensure that your client gets the most relevant protection for their needs.”
Children’s cover
The final consideration is children’s cover, Mayne said.
“What about children’s cover?” Mayne added.
“Well, for many clients protecting their children is just as important as protecting themselves.
“A quality policy can provide significantly better pay outs and broader condition coverage which could make all the difference if they ever need to take time off to care for them.
“Sometimes that’s the deciding factor in whether a policy feels truly valuable to them.”
