For years, advisers have had to tolerate critical-illness plans where the aim of insurers was to impress by the sheer quantity of conditions. This may seem harmless but the issue was one of honesty and potential deception.
Think of an insurer claiming to include dementia and Alzheimer’s disease. Alzheimer’s is a form of dementia and need not be shown as a separate condition.
A few years ago, Royal Liver stated it covered emphysema and severe lung disease but, as emphysema is a severe lung disease, this too was mendacious.
Fortunately, it seems this game is coming to an end. Both Old Mutual and Friends Life have removed Alzheimer’s as a named condition while Old Mutual and Scottish Widows have removed progressive supranuclear palsy and multiple system atrophy as stated conditions and included them within an overarching designation of Parkinsonism conditions.
We need to cut through the chaff and find the value. One day, some firm will design a simpler, yet fully comprehensive, plan that hits all the targets. Until then, we have to tread carefully to ensure that what we see is what we think it is.