Aviva is reducing premiums for its critical-illness plan when policy exclusions apply.
Premiums on policies which have cancer or multiple sclerosis exclusions will be cut.
Aviva says this means customers with pre-existing conditions or family history can still get CI cover and pay only for the level of cover they receive.
Aviva chief underwriter Michael Whyte says: “Critical-illness cover offers financial support to customers during a particularly difficult time.
“This latest improvement represents another step in Aviva making our cover more accessible, affordable and relevant to our customers.”
Lifesearch senior policy adviser Matt Morris says other providers should follow Aviva’s example. He says: “They have no reason not to. It is good for consumers and good for the industry as it reduces the number of policies not taken up.
“This initiative should be included for major illness on both critical-illness and income protection products. Fortis and Aviva are the only insurers to offer it on both products at present. It is time for everyone else to move with the times.”
Highclere Financial Services partner Alan Lakey says: “This is another example of common sense and treating customers fairly. The truth is that those providers yet to incorporate premium reductions where cover is diminished are charging for a level of protection that is not being offered. I hope that all those providers sitting back and watching will follow suit.”