Updates to HSBC Life UK’s critical illness (CI) cover include a top-up payment feature, which is available until age 60 on its CI Plus product.
The firm said that if a claim is made for one of nine listed conditions, two of which include motor neurone disease and Parkinson’s, an additional payment is provided.
This is either £200,000 or the sum assured, whichever is lower, and aims to “recognise and support the additional costs policyholders may face following a diagnosis”.
HSBC Life UK has also enhanced critical illness definitions for both its CI Core and CI Plus deals to offer “greater clarity” on what is covered.
It is also broadening protection to offer improved cover for conditions, like less advanced prostate cancer and Parkinson’s.
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HSBC Life UK has also added cover for seven types of pregnancy complications on the CI Plus product with a payment of £5,000.
Conditions include stillbirth after 24 weeks’ gestation, disseminated intravascular coagulation (DIC) or eclampsia and ectopic pregnancy with surgery to remove a fallopian tube.
The lender will also offer accelerated payouts across CI Core and CI Plus when policyholders are placed on the NHS waiting list for qualifying surgeries.
HSBC Life UK said that the change means policyholders can claim as soon as they join the waiting list, rather than waiting for the procedure itself.
This will allow “earlier access to payouts, policyholders gain greater peace of mind and more control over their treatment and recovery plans”.
Richard Waters, head of protection distribution at HSBC Life UK, said: “We have considered feedback and insight from advisers, customers and industry experts and developed a series of enhancements that ensure we can financially assist more people who are facing difficult health diagnoses.”
He said that, according to research, 45% of advisers said their clients would be more likely to purchase critical illness cover if a payout was made as soon as they were added to the NHS waiting list.
Waters added that 60% of advisers said if additional/severity payments were paid quickly enough to pay for private treatment, their clients would be more likely to buy critical illness cover.
He continued that 67% of advisers said if their clients received a payment quickly enough to pay for private treatment for early-stage cancers, they’d be more likely to buy critical illness cover.
“Our critical illness payout rate of 94.4% last year highlights our commitment to paying claims and our latest enhancements will make customers more financially resilient,” Waters added.
Alan Lakey, director at CIExpert, said: “These improvements are significant in that they extend the claim potential due to the NHS waiting list coverage and they also reflect the long-term financial impact of suffering certain conditions prior to age 60.
“The introduction of pregnancy complications, that also extends to the life insured’s partner, reflects the impact to the family as opposed to the individual.
“Our Critical Thinking research identified concerns amongst consumers about delay in treatment from the NHS, and the introduction of accelerated payments for less advanced cancers is an innovation that will provide significant value for clients going forward as individuals are increasingly considering private treatment to avoid long delays and the potential for their health to deteriorate further whilst they are waiting.
“An impressive and well-thought-out series of improvements which will push both plans up the quality table.”
Earlier this year, Chesnara agreed to buy HSBC Life UK from HSBC for consideration of £260m.
