| Question: | Should we resell the new critical illness cover contract to an existing critical illness client? |
| Answer: | The definitions have been reworded in order to make it clear what is, and is not, covered and to make sure that that future advances in medical techniques have been taken into account. This should reduce the need for changes in the future and create more certainty for customers. The new contract also includes new critical illnesses that our current critical illness contracts do not cover. Therefore for the above reasons, there is no simple or straightforward answer to this question; each case will need to be considered individually. |
If advisers do decide to rebroke an existing critical illness policy, they will need to ensure that their clients consider the following, for example, before replacing their existing contracts with a new critical illness cover contract:
- changes in their medical history, occupation and lifestyle
- their older age and
- the impact these factors might have on their premiums
These changes in circumstances may result in their clients being rated, excluded or even declined for conditions previously covered at no extra cost. The client will need to fully understand the difference in cover between their existing policy and the new contract.
Therefore, an adviser could be left open to complaints if existing critical illness business is resold and the clients are then subject to claims that would have paid out on previous terms and conditions.
Existing policies should not be cancelled until new acceptance has been received and understood by the customer and they are happy to go on risk.
| Question: | Are premiums increasing to cover the extra critical illnesses included? |
| Answer: | Legal & General will be absorbing the extra changes/improvements, meaning that there will be no increase in premiums as a result of these changes. |
