Fidelity Life, in an industry first, has launched a critical care product that allows policyholders to have ongoing cover once a claim has already been made.
Normally a trauma or critical care policy expires after a claim is made and a lump sum payment is paid out. With Fidelity's Life Care Benefit the policy stays in force and future claims can be made.
However, instead of having the total amount of cover paid first up, just 20% of the sum assured is paid when a claim occurs with the remaining cover left intact for the eventuality of further critical illnesses.
Fidelity has developed the product because people still need to have critical care cover, even if they have claimed before.
Statistics from the Swiss Re Underwriting manual indicate that a person who has suffered one of the four main critical illnesses has an increased likelihood of suffering further critical health incidents.
Two of the issues with standard products are that once a person has claimed they are unlikely to get cover again, also costs become prohibitive for people aged over 55.
Fidelity marketing executive Roseanne Zigliani says people can get cover and claim up to five times with the Fidelity policy even if they have previous conditions.
"People can claim for the same illness provided there is a period of six months between diagnosis," she says.
Also, she says the Life Care policy is significantly cheaper than a traditional trauma product and it appeals to older people.
She says premiums on the policy are about 21% of standard critical care products.
Fidelity Life is confident this cost-effective benefit will appeal to a broad market, in particular those who wish to retain the benefits of critical illness insurance in later years when the cost of standard cover may prohibitive. It offers the security of ongoing financial protection for continued health crises for up to 34 conditions.
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