A new Statement of Best Practice for critical illness cover, which aims to improve consumer understanding and lower the number of declined claims, has been issued by the Association of British Insurers.
The Statement follows consultation and consumer research, and is designed to bring clarity on what critical illness (CI) covers and how it differs from income protection (IP) insurance. It includes a new standard description of CI to help ensure consumers see a consistent explanation of the product. The wording is: “Life and critical illness cover pays out a lump sum if you either die or are diagnosed with a critical illness that meets our policy definition. We only cover the critical illnesses we define in our policy and no others.” As part of the clarity, the ABI has produced more...
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