View more on these topics

Standard cuts critical cover term to 25 years

Standard Life is reducing the maximum term on its critical-illness policies from 35 years to 25 years and removing angioplasty from its list of covered conditions.

The firm says it would rather maintain the guarantee over a shorter term than introduce reviewable rates although rates on stand-alone plans will be reviewed every five years.

Standard says it is removing angioplasty because it is increasingly being diagnosed at a younger age and should be considered to be a condition rather than a critical illness. Heart attacks and coronary artery bypass grafts will still be covered as critical illnesses.

Standard is adding a number of conditions to its CI cover, including HIV infection from attack and blood transfusion, CJD, aplastic anaemia, bacterial meningitis in adults, liver failure and dementia.

The new rates start in mid-January.

Marketing development manager (individual protection) Gerry Warner says: “Every IFA we speak to tells us that guaranteed rates are what people need. It is difficult to justify guarantees for a longer term and very few mortgage contracts run longer than that anyway.”

John Joseph Financial Services director Steve Petrie says: “Standard are catering for their mortgage market but it is a shame that people taking out a policy in their twenties will be losing critical-illness cover in their fifties just when they may need it. Adding things like CJD is not really enhancing the policy very much because if you have that illness, you are likely to be able to claim under another condition anyway.”


Julian Gibbs

It makes sense to have an independent financial adviser at home and abroad who understands the host country&#39s rules and regulations and the investments available to you. Until now, there has been no independent analysis of commercial property partnerships and funds. However, a new publication called Property Fund Review has been launched, with research provided […]

When the going gets tough … get advising

What lessons can we learn from the events of the last 12 months? Most executives of IFA firms say it has been a very difficult year although business picked up in the second half. The reasons behind this are clear. War in Iraq contributed to a sense of uncertainty by investors. As reform of our […]

Cazalet claims Moms beat Fofs

Manager of managers should provide superior risk-managed portfolios, strategies and returns compared with fund of funds, according to a report by Cazalet Consulting. The report, commissioned by Scottish Widows to assess its tie-up with leading multi-manager Russell Investment Group, argues that Fofs are limited because they can only invest in retail funds available in the […]

Return to spender

I have recently been presenting a number of seminars on one of my favourite financial services topics – asset allocation. I will be looking here at projected returns from each of the major asset classes and sectors. Importantly, I will not resign myself to simply commenting on the appropriateness of the FSA&#39s standard illustrations for […]

Canada Life annual IHT survey results

75% of wealthy unaware of new residence nil rate band IHT allowance Just 4% were aware the new allowance will be up to £175,000 per individual Lack of awareness of IHT rules means families risk paying a bigger bill than they need 83% think the current inheritance tax rules are far too complex A remarkable […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment