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ScotProv caps critical sum assured

Scottish Provident is to limit the maximum sum assured on its stand-alone critical illness policies to £500,000.

Head of marketing and product development Nick Kirwan says IFAs will be getting letters telling them of the change. The company will still offer higher amounts for life cover and critical illness with life cover on a combined basis.

The change comes into effect from October 1, with pipeline applications still being accepted.

Lifesearch senior technical manager Kevin Carr says the move reflects market changes from medical developments such as earlier detection of potentially critical illnesses, which have raised premiums. He says it is a way to limit insurers&#39 exposure and risk.

ScotProv joins firms such as Norwich Union, Skandia and Scottish Widows which imposed a ceiling on sums assured.

Kirwan says: “Quite a few of our competitors have stopped offering stand-alone critical illness altogether. We believe there is still a market for it and we will continue to offer it.”

Carr says: “It does fit the trend and is more of the same, they are not the first to have a half a million limit.”

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