master class: serious illness cover booster

Download Master Class: Serious Illness Cover Booster

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Serious Illness Cover BoosterEven more help coping with the long-term effects of some serious illnessesFor AdvisersEarlier diagnosis mean higher survival ratesMore people are being diagnosed with cancer earlier, but fewer cases get to an advanced stageSource: Cancer Research UK

#http://www.cancerresearchuk.org/cancer-info/cancerstats/incidence/all-cancers-combined/http://www.cancerresearchuk.org/cancer-info/cancerstats/mortality/mortality-projections/2It means a growing diagnosis gapGap between diagnosis and start of traditional critical illness cover is growingDiagnosis gapA severity based approach means we can better meet customer expectationsTraditional Critical illness payment levelTypical point of diagnosisSerious Illness Cover provides more cover from the point of diagnosis#Traditional critical illness coverCover is designed to typically pay out for critical conditions onlyPayoutConditions coveredA traditional critical illness policy pays out 100% on most conditions covered.Diagrams are only illustrative of how cover worksPartial payments of around 25% may be made on some policies on certain named conditions#Comprehensive Serious Illness CoverBroader cover with more appropriate payouts mean we can better meet customer expectationsPayoutConditions coveredUp to twice1 as likely to pay out compared to typical critical illness coverDiagrams are only illustrative of how cover works. 1 Based on analysis by Hannover Re UK Life Branch, August 2013#Comprehensive Serious Illness Cover with BoosterPayoutConditions coveredSerious Illness Cover Booster provides a 100% payment on conditions typically covered at 100% by CICFor certain long term conditions it boosts payments from 100% up to 200%, depending on age at claimFor the same long-term conditions an additional 10% boost for every child named on the policyCover for early stage illnesses with Comprehensive Serious Illness Cover Diagrams are only illustrative of how cover works#Comprehensive Serious Illness Cover with BoosterPayoutConditions coveredUp to twice the amount for certain conditions, compared to typical critical illness coverDiagrams are only illustrative of how cover works. 1 Based on analysis by Hannover Re UK Life Branch, August 2013Up to twice1 as likely to pay out compared to typical critical illness cover#What customers saidWhat cover type appeals to you most?Relative appeal of cover optionsSource: Immerse research (2013)#Ben30 years old Takes out Comprehensive Serious Illness Cover 100,000 sum assured

Unfortunately Ben is diagnosed with Multiple Sclerosis when he reaches 34. His condition is quite severe leaving him unable to do a number of activities such as washing without some assistance.He receives a payout, and because he had Serious Illness Cover Booster it is boosted 75% to 175,000. That is 75,000 more than if he just had Serious Illness Cover, and it means Ben can afford a lot more help to get on with life including modifications to his home and improved mobility.

The need for extra coverExample

#Why recommend Serious Illness Cover with BoosterGive your clients moreCover for early stage illnessesEven less severe illnesses have an impact on customers. So Comprehensive Serious Illness Cover offers cover for more early stage conditions than a typical critical illness policy. In fact your clients may be up to twice1 as likely to get a payout.100% payment for conditions typically covered by critical illness For some customers having a 100% payout may be important. Serious Illness Cover Booster increases the payments made on our Serious Illness Cover, so that you can be sure clients will get a 100% payment for the conditions that are paid out at 100% by a typical critical illness policy Boosted payments for long-term illnessesCertain conditions can have a bigger long-term financial impact, particularly if they happen when your client is younger or if they have a family. Serious Illness Cover Booster will increase the payout made for certain conditions from 100% up to 200% depending on their age at the point of claim.Additional boost for childrenIf your client receives a boost for a long-term illness, we will also pay an additional 10% for each child named on the plan (up to 25,000 each), recognising the additional costs you client may need to cover.1 Based on analysis by Hannover Re UK Life Branch, August 2013#Vitality Optimiser

A new generation of protection

Regular behavioural nudgesDouble cashback for joint PruHealth/ PruProtect membersAnnual cash backPlatinumGoldSilver5075100100150200Incentivise behavioural changes1

Integrated wellness2Immediate reward

Up to 40% premium discountIntegrated healthy living rewards programme

Fairer approach to pricing3BronzeSilverGoldPlatinumMarket premiumVitality Optimiser: A new generation of protectionCoverTotal monthly costSerious Illness Cover33.44+ SIC Booster36.23Vitality Optimiser exampleUsing Vitality Optimiser to help customers get more cover+ Vitality Optimiser33.79*Engage with Vitality to keep the premiums low and stay healthy

A cinema ticket23.79*Including the cost of Vitality Plus fee of 3 per month. Prices as at 21 July 2014With Vitality Optimiser Charlie gets more cover and pays less Charlie30 years old Takes out Comprehensive Serious Illness CoverEssentials Plan25 year term 100,000 sum assured He also goes to the cinema once a month#Serious Illness Cover Booster - AppendixFor AdvisersOriginal severity: DOriginal severity: COriginal severity: BCancerCoronary artery by-pass graftsAorta graft surgeryHeart valve replacement or repairHeart attack of specified severityBy-pass graft surgery to three or more coronary arteriesAlzheimers disease - resulting in permanent symptomsLoss of a single hand or footHeart attack ejection fraction of between 40% and 45% Benign brain tumour - resulting in permanent symptoms or surgeryLoss of use of a whole handLoss of a single limbComa - resulting in permanent symptomsSurgery for drug resistant epilepsy Any neurological disease inability to perform 3 out of 6 functional activity testsMotor neurone disease - resulting in permanent symptomsAny other cardiac condition ejection fraction of between 40% and 45%Multiple sclerosis - resulting in current symptomsBilateral hemianopia Parkinsons disease - resulting in permanent symptomsConnective tissue diseases - 3ADLsStroke resulting in permanent symptoms Cardiomyopathy ejection fraction of between 40% and 45% Traumatic head injury - resulting in permanent symptomsFibrotic lung disease with transfer factor 35% and 39% of predictedCreutzfeldt-Jakob disease - resulting in permanent symptomsGuillain-Barre syndrome Dementia - resulting in permanent symptomsHome oxygen therapy Encephalitis - resulting in permanent symptomsHypertrophic cardiomyopathy - maximal LV wall thickness between 15mm and 25mmMuscular dystrophySevere chronic renal impairmentProgressive supra-nuclear palsy - resulting in permanent symptomsStage IV chronic obstructive pulmonary disease Spinal tumourThird degree burns covering 15% of the bodys surface areaWhich conditions are boosted to 100%?#Severity A conditions boosted from 100% up to 200%:Alzheimers disease - permanent failure 4 out of 6 functional activity testsLoss of muscle power resulting in the inability to gripProgressive supra-nuclear palsy - permanent failure 4 out of 6 functional activity testsAny neurological disease - permanent failure 4 out of 6 functional activity testsLoss of speech Rheumatoid arthritis - permanent failure 4 out of 6 functional activity testsBenign brain tumour- permanent failure 4 out of 6 functional activity testsMental and behavioural disorder - persistent confusional state to age 70Severe visual impairmentBlindnessMental and behavioural disorder - total lack of social interaction to age 70Stroke with residual deficit measuring 4 or above on the modified rankin scaleCauda equinaMotor neurone disease - permanent failure 4 out of 6 functional activity testsSystemic lupus erythematosis - permanent failure 4 out of 6 functional activity testsComa causing permanent inability to perform 4 out of 6 functional activity testsMultiple sclerosis - permanent failure 4 out of 6 functional activity testsSystemic sclerosis (scleroderma) - permanent failure 4 out of 6 functional activity testsCreutzfeldt-Jakob disease- permanent failure 4 out of 6 functional activity testsMuscular dystrophy - permanent failure 4 out of 6 functional activity testsThird degree burns Dementia - permanent failure 4 out of 6 functional activity testsParalysis of limbs Total and permanent disability - unable before age 65 to do at least four work tasks ever againEncephalitis causing permanent inability to perform 4 out of 6 functional activity testsParkinsons disease - permanent failure 4 out of 6 functional activity testsTotal and permanent disability - unable before age 70 to do your own occupation ever againGiant cell arteritis - permanent failure 4 out of 6 functional activity testsPermanent faecal incontinence Total and permanent disability - unable to do at least four tasks designed to assess whether you can look after yourself ever againLoss of hands or feetPersistent vegetative stateTraumatic head injury - - permanent failure 4 out of 6 functional activity testsLoss of manual dexterityPolyarteritis nodosa - permanent failure 4 out of 6 functional activity testsWegeners granulomatos - permanent failure 4 out of 6 functional activity testsWhich long-term illnesses are boosted above 100%?#How are long-term illnesses boostedAge related boost up to 200% of coverAge attained at date of diagnosis% of Serious Illness Cover paid16 - 24200.025197.530185.035172.540160.045147.550135.055122.560110.064 and older100.0The % of cover paid will decrease by an additional 2.5% for every year they are diagnosed after the age of 24. For lives 24 or younger we will pay 200%, and for those 64 and older

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