Risk Clinic: Lump sum vs severity-based CI

Alan Lakey, Highclere Financial Services Only PruProtect offers a severity-based plan, although many providers are dipping their toes in the water by identifying areas where they can add value using partial payments. The major problem with the severity-based approach is that it frequently involves the use of activities of daily living (ADLs) to determine the level of disability. This in itself provides fodder for a two-day conference, but let’s consider the drawbacks as a client might view them. If the client suffers a stroke his standard CI plan pays 100% of the sum assured. His sever...