View more on these topics

Axa PPP bids to fill gap between PMI and critical cover

Axa PPP is piloting a medical protection scheme to IFAs which aims to bridge the gap between private medical insurance and critical-illness cover.

The plan is described as a lower-cost alternative to traditional medical insurance. It offers cover on cancer, stroke and heart conditions to a benefit value of 250,000 for two years following diagnosis and cover of up to 250,000 for one year of treatment following injury in a road traffic accident.

Cancer, heart conditions and stroke are the UK’s three most life-threatening medical conditions, according to the Office for National Statistics.

The Essential Medical Protection plan is designed to protect during a client’s working life and expires at 65. It is designed to be significantly cheaper than PMI so it will appeal to a younger market and those who want benefits but find traditional products too expensive.

Premiums are based on the client’s age when they take out the policy and are reviewed every 10 years. Commission is on a flexible basis to cater for IFAs from the protection market used to up-front commission and low renewals and intermediaries from the PMI market accustomed to higher renewals.

The company is hoping to launch the product early next year.
Head of intermediary development Nye Jones says: “This is plugging the gap between the traditional critical-illness cover proposition and PMI. With regulation crossing over the two products from January, this is a great opportunity for the industry. Our challenge has been to create a new market within an established one.”

Recommended

Savings at stake

Has the Government learned from the stakeholder pension debacle or is it repeating its mistakes?

Close calls for short-term opportunities

Close Property Investment is raising up to 10m for the sixth special opportunities fund, an exempt unit trust providing self-invested personal pension and small self-administered scheme investors with exposure to short-term UK property projects.

A bull case for US equities?

Neptune video: a bull case for US equities?

Watch Felix Wintle, head of US equities at Neptune, discuss why he believes US equities are in a structural bull market and the key factors that can drive the S&P 500 higher.

In the video, Wintle addresses the following:

• The US market and why — despite equities rising from 2009 — he believes the structural bull market only started in 2013
• Key economic and corporate factors that can drive the S&P 500 higher
• Investment themes and sectors offering exposure to the domestic recovery

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment