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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.”


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