View more on these topics

Barnard blasts Pru critical plan

Dr Marius Barnard, the architect of critical-illness cover, has slammed Prudential’s new flexible protection plan, saying it is complicated and gimmicky.

Barnard has long campaigned for the introduction of staged payouts based on the severity of a disease, which the Pru product offers, but he says these should only apply to critical diseases, not the myriad of less serious conditions also covered by the Pru product.

The Pru plan, developed with South African insurer Discovery, covers the four main conditions first included in CI policies by Barnard – heart attack, cancer, stroke and coronary bypass surgery – but it also covers many other conditions that can affect lives, such as the loss of an eye.

Barnard, who was part of the team that conducted the world’s first human heart transplant, says the number of payout permutations is difficult for him to understand, let alone a member of the public.

He says: “If you go blind in one eye, you can live a perfectly normal life. I would not class this as critical. I want to see severity based on the main conditions, not on all these 100-odd conditions.

“I think this is a very complex product. If I cannot understand it, then what chance has the average consumer got? I think this is quite gimmicky. They are very clever though.”

Prudential head of protection Paul Cowman says: “We spent a lot of time working with leading ophthalmic surgeons and if you lose the sight in one eye, your field of vision is restricted, so you might not be able to drive. We have assessed conditions based on the impact on people’s lives, which is why they are not all full payouts but we want to reassure people that if a certain condition occurs they will get a payment, preventing the lottery of existing policies that require a lot of medical knowledge to understand them.”


Treasury issues Asp warning

An insider at the Treasury accuses tax advisers of “wilful abuse” of Asps, which were introduced for religious groups, such as the Plymouth Brethren, with moral objections to annuities. The source says: “It is unfortunate that a group of tax-avoidance advisers are wil-fully seeking to abuse it in this way. We will take all the […]

Don’t block scheme pension route

Further to the article in the August 3 edition of Money Marketing, headlined, Standard complains over loophole that it revealed, scheme pensions could in the future form a very valuable option for self-invested trust-based money-purchase arrangements. Historically, scheme pensions have been paid from defined-benefit schemes, where the scheme trustees take on the onus of payment […]

Campaign group launches to educate on Reits

A new publicity campaign branded as Reita has launched in a bid to raise awareness of the impact of Reits to the UK market when they come in on January 1, 2007.The Reits and Quoted Property Group – is a collective of 30 companies including eight quoted property companies, nine fund managers, the British Property […]

A sense of place

Fidelity is to start paying 0.5 per cent renewal commission on its offshore fund range, saying IFAs are increasingly seeing offshore funds as mainstream investments.

Time to stop the salami slicing on tax relief

Steve Webb  – Director of Policy and External Communications As the Autumn Statement approaches, Steve Webb calls for the Government to stop tinkering with tax relief. Twice a year, in the run-up to the Spring Budget and the Autumn Statement, we face a torrent of speculation as to what changes the Chancellor might make to […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm