These new definitions are aimed at improving clarity for consumers and reducing claims declined for not meeting policy definition. Legal & General's new product also covers four new illnesses. One of these news illnesses is mastectomy and is the first time that Legal & General has introduced a severity based cover. An additional 25% of sum assured or £25,000 (whichever is lower) is available.
Bonnie Burns, Legal & General's protection product and technical director said: "We're raising the bar for critical illness cover yet again and at the same time we have taken the opportunity to enhance the ABI's ‘model illnesses'. We have successfully created a leading critical illness product whilst making it more flexible for consumers."
"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 a valid claim. We already have a strong reputation for paying claims and paid out on 93.6% of them last year, totalling £152 million."
Last year Legal & General declined 4.6% of critical illness claims for not meeting policy definitions. The new critical illness definitions are designed to highlight when a policy will and won't pay out, helping to improve consumer confidence in the industry.
Gemma Ledbrook, Sesame research manager, added: ''The Critical Illness market has become increasingly competitive in recent times and it is clear to see that L&G has made a concerted effort in improving its CI proposition. This comes in the form of greater product flexibility and improved features, such as now providing eleven ABI + definitions, adding four extra illnesses and substantially improving upon its children's cover. These enhancements have added real value to clients and has helped L&G achieve a Preferred status from Sesame Research.''
