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Care and share with Exeter


Shared Care Plan

Type: Budget individual private medical insurance

Minimum-maximum ages: 18 to 80

Minimum premiums: Core package £17.46 a month, option A £13.17
a month, option B £3.21

Maximum benefits: Core package £100,000, Option A £5,000, Option
B £1,500

Cover provided: Core package&#45 inpatient and day patient hospital
charges, inpatient and day patient specialist services, oncology,
cover abroad, hospice donation, GP consultations and medical
information via helpline, Go Private membership. Option A outpatient
benefits &#45 specialist consultations, diagnostic tests, diagnostic
imaging, scans, minor surgical procedures. Option B additional
benefits &#45 complementary therapy such as physiotherapy, osteopathy
and chiropody up to £300 a year, home nursing up to £500 a year,
private ambulance up to £300 a year, heath screens up to £150 a
year, travel allowance up to £50 a year

Excess: None

Options: Choice of 25% or 50% shared payment

Commission: Subject to negotiation

Tel: 08080 556575

Exeter Friendly Society&#39s shared care plan is a private medical
insurance (PMI) plan that reduces premiums for policyholders
through shared payment, where policyholders meet 25 per cent or 50
per cent of medical costs themselves.

Capital Trust Financial Management product researcher Nikki
Hassan thinks the product will fit quite easily into the market even
though she is critical of the shared payment concept. “It would not
appeal to clients who opt for excesses because they have no spare
cash to pay towards the cost of a claim. But it is still a good all round
product worth considering for any client requiring private medical

Hassan highlights the fact that premiums will not increase with age.
She says: “This is a strong selling point, especially as PMI rates
increase dramatically when you reach certain age bands. This
product would provide reassurance to all age groups who are
concerned about premium rates.”

She adds that the choice of core cover with two other options enables
the client to choose their cover to suit their family needs and budget.
She also points out the choice of payment level &#45 either 25 per cent or
50 per cent of the costs &#45 means clients with access to disposable
cash if necessary can benefit from lower monthly subscriptions. She
says: “With this product, you can join up to age 80. Compared with life
products, this is higher and therefore would appeal to IFAs with older
clients requiring PMI.”

Hassan regards the product literature as colourful, eye-catching and
modern. She says: “There is a wealth of information provided and it
seems to cover all relevant issues in a clear and concise manner,
thus making things easier for the IFA and client. The example
scenarios and Q&A section are very useful to help the IFA and the
client understand how the product works.”

However, on the down side she feels there is nothing to make you
jump at it straight away. “I think the main concern about this product
would be the fact that if the treatment or hospital is not sourced via Go
Private, the client is liable for the full costs of treatment up-front prior
to treatment being received. Exeter reimburses the clients only when
the original invoices are received. This would be acceptable for less
complicated and less expensive treatment. However, for treatment
that could cost thousands of pounds, this would not be a favourable
option for clients who may not have access to such money,”

In conclusion Hassan cites the Norwich Union medios optional plan
and executive plus plans as worthy competitors. She says: “Both
these contracts offer the no age-related increases which is the key
selling point for the shared care plan. The medios range will provide
stiff competition to Exeter&#39s shared care plan, especially as Norwich
Union is a household name.


Suitability to market : Average
Flexibility: Good
Premiums: Average
Overall 5/10


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