At this year's COVER Protection Forum, calls were made for a critical illness product offering built-in retirement cover as a way of addressing the cost of long term care. What are the pros and cons of developing such a product?
Market views Eugene McCormack, UnumProvident Critical illness (CI) products are unlikely to provide the solution to the issue of long term care (LTC). A recent suggestion has been made to create a conversion option on CI policies, which would pay out when the claimant is over 65 years of age. The claim would be based on the person's ability to perform certain activities of daily living (ADLs), rather than on the diagnosis of a specific illness. But what the client needs in this situation is an income to meet the cost of care, rather than capital. In this case, income protection (IP) ...
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