The provider has adopted a “modular” approach which will allow different types of cover to be added or removed from a critical illness policy.
This is available in three levels, including the ‘Critical Illness’ policy which is its lower cost option and includes claims on most conditions.
It includes the updated definitions for brain injury, cardiomyopathy, pulmonary hypertension and less advanced cancer of the prostate. Zurich has also updated its cancer, heart attack and dementia cover in line with Association of British Insurers guidelines.
There is also the ‘Critical Illness Enhanced’ policy, formerly knowns as ‘Select’ which now includes cover for all neurodegenerative conditions, all bowel diseases, accidental hospitalisation, permanent pacemaker insertion and severe sepsis, and improved cover for a range of conditions including mental illness, coronary angioplasty and drug resistant epilepsy.
The ‘Critical Illness Enhanced+’ policy has been created for people who want “market leading cover and payout levels”, Zurich said.
The maximum payout for additional payment conditions has been doubled to £50,000. There are also additional uplift benefits which offer extra financial protection for severe health conditions, where the maximum payout has also been doubled from £100,000 to £200,000.
The maximum age for the uplift benefit has been raised from 50 to 55.
Other product changes
Zurich has also de-coupled child cover from adult cover so policyholders can have additional flexibility at different stages in life. Additionally, it has introduced optional pregnancy and early childhood cover which can be added or removed from a policy.
Parents can add cover for children to the personal protection policy and life cover.
The children’s cover pays the same sum for all named conditions and includes a hospital stay benefit which provides a contribution to the out-of-pocket expenses if there is a prolonged stay in hospital. The policy also includes child death.
This can be added or removed from adult cover at any time, while parents and guardians can choose their preferred level of cover.
Policyholders can also add ‘Children’s Enhanced Cover’ which includes the same protection as ‘Children’s Cover’ with a new child permanent dependence benefit which pays out if the child is deemed unable to live independently on a permanent basis.
The pregnancy and early childhood cover is an optional short-term feature for those planning to have children and can be removed once it is not needed.
It includes critical illness protection for cerebral palsy, craniosynostosis, cystic fibrosis, Down’s syndrome, Edward’s syndrome, hydrocephalus, muscular dystrophy, osteogenesis imperfecta, Patau syndrome, and spina bifida.
It can be added at any time over the term of a policy and includes improved cover for pregnancy complications including late-stage miscarriage, child death cover including cover for still births, and new cover for birth defects.
It will also provide a contribution of £50 per night to the unexpected costs of hospital stays due to premature births.
Louise Colley (pictured), director of retail protection at Zurich, said: “Our enhanced approach to critical illness will allow advisers to offer crafted cover to customers at any stage in life. The Financial Conduct Authority’s new Consumer Duty regime focuses the mind on creating solutions that meet customers’ needs more than ever before, rather than off-the-shelf products that may not always be suitable.
“With the ability for customers to add and remove elements of cover throughout the life of the policy, this is the only critical illness product that policyholders will ever need. The peace of mind this will offer customers, combined with the simplicity it offers to advisers, makes this an offering we are incredibly proud to share with the market.”
Complete redesign
Insurance comparison site provider CIExpert said the changes were more aligned with customer needs.
It said: “The concept is based around offering clients of all ages, needs and budgets a far greater choice. Being able to add to the cover or to discard those elements of the plan that are no longer required far more accurately reflects the clients’ needs both now and in the future.
“Whilst many advisers and consumers focus on simplicity, many others are focused on choice, quality and flexibility and Zurich is catering for all of these differing needs and budget with this innovative modular design.”
The firm added: “This is the first major change in policy design for some years and we anticipate that it will have a significant impact on the market going forward.”
