CIExpert Review: Royal London upgrades protection plans
Alan Lakey reviews the benefits available through Royal London's recent policy update.
ALAN LAKEY
Amazingly, this is the first critical illness upgrade of 2021. By July there have usually been five or six changes to plan designs or condition wordings.
Royal London’s changes, highlighted below, are relatively modest but nonetheless welcome. They primarily impact payments in respect of children’s critical illness but also extend the payment levels for claims on adult additional payment conditions.
Plan Changes
| Feature | Details |
|---|---|
| Additional Payment Conditions | The amount has been increased from the lower of £25,000 or 25% of the sum insured to the lower of £30,000 or 50% of the sum insured. This has a greater impact on smaller sums insured. For example on a £75,000 level term policy the payment rises from the current £18,750 to £30,000. |
| Enhanced Children’s Critical Illness | Similarly, the amount payable has been increased from the lower of £25,000 or 25% of the sum insured to the lower of £30,000 or 50% of the sum insured. This has a greater impact on smaller sums insured.
The end age has been increased from 21st birthday to 22nd birthday with 23rd birthday still used if in further education. Child death benefit has been uplifted form £5,000 to £10,000 and is extended to from birth as opposed to the previous 14 days from birth. |
| Standard Children’s Critical Illness | The maximum payment has bene increased from £25,000 to £30,000 with the maximum percentage remaining at 50%. Terminal Illness has been included as has a £5,000 death benefit. |
| Pregnancy Complications Benefit | The payment for Still Birth has also been increased from £5,000 to £10,000. |
| Guaranteed Insurability Options | Two increase options have been introduced for tenants. The first relates to rent increases and the second where a current renter takes out a first mortgage. |
CIExpert's Verdict
These improvements are welcome as they provide for increased payments for both adults and children. Royal London has been offering superior children’s cover for a number of years and these improvements serve to strengthen their position.
