Tax change allows upgrade in CI cover

Endowment holders with a critical illness rider will be able to have their cover upgraded if their provider has improved its plan since the policy was purchased, after a change in tax rules. Under Inland Revenue regulations, if an insurer makes a significant variation to a qualifying product, its tax-free status may be affected on maturity and this has in the past prevented critical illness insurers passing on improvements to existing customers. However, after much lobbying by the ABI, the addition or revision of illnesses will no longer be viewed as significant variations as long as the ...