Actuarial and product director Deepak Jobanputra says the plan to axe TPD could result in a number of providers looking at severity-based products.
He says: “One of the problems with TPD is that people do not always understand total and permanent, which leads to some claims being declined. With severity-based cover, claims can be paid much earlier and this could improve the outcome for some people.”
Pru Protect is one of the few providers currently offering this type of cover.
Friends Provident protection product manager Denis Bayle says: “Severity and disability are a different way of looking at critical illness and one we would be interested to explore further.”
Zurich protection marketing manager Gerry Warner says: “We are not convinced the market is ready for such a move.”
Lifesearch senior policy adviser Matt Morris says: “While severity-based products are good, traditional CI cover still has an important role in the market.”