Guardian said the percentage of sum insured payable has gone up from the lower of £50,000 or 25% of the sum insured to the lower of £50,000 or 50% of the sum instead.

The firm said that this is equal to a doubling of the additional amounts paid for sums assured by up to £200,000.

The company said that this was a “sizeable increase” and bolsters its position.

For a low-risk non-melanoma skin cancer, it is the same as the lower of £50,000 of the sum insured, and surgery cover stays at the lower of £50,000 or 25% of the amount insured.

The additional payment conditions are not being backdated to existing policyholders.

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‘Much-needed financial breathing space’

Jacqui Gillies, marketing and proposition director at Guardian, said: “Additional payouts offer much-needed financial breathing space and the ability to make lifestyle modifications or help fund additional treatment to those people who’re diagnosed with something critical, but not critical enough to meet a full payout definition.

“We know advisers like our crystal-clear definitions and our approach to claims, however some partners were telling us that their clients would value a higher additional payout amount.

“This was also a theme that was echoed in CIExpert’s Critical Thinking Report. Listening to that feedback, and after consulting with the team at CIExpert to assess the level of positive impact these changes would have on consumer outcomes, we’re delighted to be able to introduce them for new customers with immediate effect.”

Alan Lakey, director at CIExpert, said: “Our Critical Thinking 2024 survey of 5,000 consumers showed that the majority did not recognise that additional payment conditions were included in most plans; 81% of consumers didn’t think it was possible to make multiple claims for either adults or their children for less critical conditions. Interestingly, once that was explained, 36% said they’d be more likely to consider CIC in the future, which rose to 70% of Gen Z.

“This indicates that as an industry we too often assume that consumers understand our complex terminology, and whilst this change is material to a client when making a claim, you have to wonder how many advisers would recognise the impact of this percentage change.

“Our comparison analysis takes these payment levels into account, which is particularly important for comparison of decreasing plans, where the amount paid out will vary for each year of the term and requires an accurate reflection of the overall difference in value for the client.

“This Consumer Duty requirement highlights the importance of advisers explaining the valuable benefits of critical illness plans, since it’s unlikely that most consumers would comprehend the difference.”

Guardian recently updated its underwriting process for people living with HIV.