Guardian has increased the amount it will pay when a policyholder is diagnosed with a condition that meets one of its additional payout definitions.
The insurer will increase its payout from 25 per cent to 50 per cent of the cover amount up to a maximum of £50,000.
The exception to this is for low-risk non-melanoma cancer, which remains at 10 per cent of the cover amount up to the same maximum.
Guardian marketing and proposition director, Jacqui Gillies, said: “Additional payments offer much needed financial breathing space and the ability to make lifestyle modifications."
She added that additional payments will also help fund additional treatment to those people who are 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,” she continued.
“We’ve listened to that feedback and it’s why we’ve announced this change.”
Guardian explained that additional payouts are designed to give customers the financial ability to make lifestyle changes or help fund additional treatments they may need if they’re diagnosed with a critical illness.
These payouts do not impact the policyholder’s ability to make a claim for a full payout in the future and can be payable more than once, but not for the same decision twice.
However, the exception to this is carcinoma in situ which can be claimed multiple times so long as the site of each carcinoma in situ is different.
CIExpert co-founder and director, Alan Lakey, said: “We know from our Critical Thinking Report 2024 that customers value the ability to make multiple claims on a policy.
“This increase strengthens Guardian’s position in terms of the cover offered for customers diagnosed with a condition that meets an additional payout definition.
“While these conditions are not deemed to be critical enough by the medical profession, and hence by insurers, to trigger a full payout, they do still have a serious impact on lives.
“The beauty of additional payouts is that they don’t impact the ability to make a full claim in the future.”
This product change applies to all new quotes and applications for Guardian’s Critical Illness Protection and Combined Life and Critical Illness Protection from yesterday (June 17).
As this is not a definition change, as required to fall within the scope of Guardian’s cover upgrade promise, this product change doesn’t apply to Guardian’s existing policyholders.
tom.dunstan@ft.com
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