Standard Life is increasing premiums on new criticalillness plans by around 50 per cent, saying the rise is due to advances in diagnostic techniques and IFAs wanting guaranteed products.
The firm says research shows that IFA clients want guaranteed CI cover and it has raised premiums to continue to offer the product.
Standard says the increase returns premiums to the levels of three years ago and says existing policies are not affected.
It is writing to IFAs to explain the move, which follows Norwich Union's decision to raise guaranteed CI premiums by an average of 40 per cent. Legal & General and Skandia have also altered terms on CI contracts.
A 35-year-old non-smoking male will pay £30.96 for £100,000 sum assured over 20 years compared with £20.61 previously.
Marketing development manager Gerry Warner says: “Advances in diagnostic techniques and changes in screening are leading to more effective and earlier detection of serious medical conditions. These advances are making it increasingly difficult to predict the future levels of critical-illness claims.”
Fidelius director Mark Osland says: “People who have bought CI have got good cover and should be careful to preserve it. We do not need to go to NU and Standard. Those companies who have delayed implementing these increases will be doing a lot of business.”