L&G adds illnesses to critical illness cover

Legal & General is launching a new critical illness product covering three additional illnesses.

The new policy now incorporates the mandatory changes to definitions of critical illness, as set out by the Association of British Insurers.

It also includes wider definitions for some illnesses, which are intended to improve clarity for consumers.

The three illnesses now covered are encephalitis, systematic lupus and primary pulmonary hypertension.

The new ABI statement of best practice 2006 for critical illness cover helps protect consumers by making providers use a common format and generic terms for describing critical illness cover.

Bonnie Burns, protection marketing director at Legal & General, says: We set out to raise the bar for critical illness cover and at the same time we have taken the opportunity to incorporate the ABIs new guidelines.

I believe we have successfully created the market-leading critical illness product whilst refining the definitions for the types of critical illness that we cover and adding three new illnesses to the policy.”

She adds: When people take out critical illness they want to know exactly what they are covered for and they want confidence that their policy is going to pay out if they have an eligible claim.

We already have a strong reputation for paying claims and paid out over 92m on critical illness last year.

Legal & Generals research showed that 76% of financial advisers say that a providers reputation for paying claims is vital to their clients.

The new critical illness definitions are designed to highlight when a policy will and wont pay out, helping to reduce the disappointment of declined claims.