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Serious Illness Cover BoosterEven more help coping with the long-term effects of some serious illnesses
For Advisers
2
Earlier diagnosis mean higher survival ratesMore people are being diagnosed with cancer earlier, but fewer cases get to an advanced stage
Source: Cancer Research UK
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It means a growing diagnosis gapGap between diagnosis and start of traditional critical illness cover is growing
Critical
Severe
Chronic
Dia
gn
os
is g
ap
A severity based approach means we can better meet customer expectations
Traditional Critical illness payment level
Typical point of diagnosis
Serious Illness Cover provides more cover from the point of diagnosis
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Traditional critical illness coverCover is designed to typically pay out for critical conditions only
Pay
out
Conditions covered
A traditional critical illness policy pays out 100% on most conditions covered….
Diagrams are only illustrative of how cover works
Partial payments of around 25% may be made on some policies on certain named conditions
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Comprehensive Serious Illness CoverBroader cover with more appropriate payouts mean we can better meet customer expectations
Pay
out
Conditions covered
Up to twice1 as likely to pay out compared to typical
critical illness cover
Diagrams are only illustrative of how cover works. 1 Based on analysis by Hannover Re UK Life Branch, August 2013
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Comprehensive Serious Illness Cover with Booster
Pay
out
Conditions covered
Serious Illness Cover Booster provides a 100% payment on conditions typically covered at 100% by CIC
For certain long term conditions it boosts payments from 100% up to 200%, depending on age at claim
For the same long-term conditions an additional 10% boost for every child named on the policy
Cover for early stage illnesses with Comprehensive Serious Illness Cover
Diagrams are only illustrative of how cover works
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Comprehensive Serious Illness Cover with Booster
Pay
out
Conditions covered
Up to twice the amount for
certain conditions,
compared to typical critical illness cover
Diagrams are only illustrative of how cover works. 1 Based on analysis by Hannover Re UK Life Branch, August 2013
Up to twice1 as likely to pay out compared to typical
critical illness cover
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What customers saidWhat cover type appeals to you most?
CIC SIC A Hybrid
+28%
+58%
Relative appeal of cover options
Source: Immerse research (2013)
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Ben– 30 years old – Takes out Comprehensive Serious Illness Cover – £100,000 sum assured
• Unfortunately Ben is diagnosed with Multiple Sclerosis when he reaches 34.
• His condition is quite severe leaving him unable to do a number of activities such as washing without some assistance.
• He receives a payout, and because he had Serious Illness Cover Booster it is boosted 75% to £175,000.
• That is £75,000 more than if he just had Serious Illness Cover, and it means Ben can afford a lot more help to get on with life including modifications to his home and improved mobility.
The need for extra coverExample
Without Serious Illness Cover Booster
With Serious Illness Cover Booster
100,00
0
175,00
0
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Why recommend Serious Illness Cover with BoosterGive your clients more
• Cover for early stage illnesses– Even less severe illnesses have an impact on customers. So Comprehensive Serious
Illness Cover offers cover for more early stage conditions than a typical critical illness policy. In fact your clients may be up to twice1 as likely to get a payout.
• 100% payment for conditions typically covered by critical illness – For some customers having a 100% payout may be important. Serious Illness Cover
Booster increases the payments made on our Serious Illness Cover, so that you can be sure clients will get a 100% payment for the conditions that are paid out at 100% by a typical critical illness policy
• Boosted payments for long-term illnesses– Certain conditions can have a bigger long-term financial impact, particularly if they
happen when your client is younger or if they have a family. Serious Illness Cover Booster will increase the payout made for certain conditions from 100% up to 200% depending on their age at the point of claim.
• Additional boost for children– If your client receives a boost for a long-term illness, we will also pay an additional
10% for each child named on the plan (up to £25,000 each), recognising the additional costs you client may need to cover.
1 Based on analysis by Hannover Re UK Life Branch, August 2013
1 2 3 4 5 6 7 8 9 10 11
Regular behavioural nudges
Double cashback for joint PruHealth/ PruProtect members
Annual cash back
PlatinumGoldSilver
£50 £75 £100
£100 £150 £200
Incentivise behavioural changes1
Integrated wellness2
Immediate reward
Up to 40% premium discount
Integrated healthy living rewards programme
Fairer approach to pricing3
Bronze Silver Gold Platinum Market premium
Vitality Optimiser: A new generation of protection
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Cover Total monthly cost
Serious Illness Cover £33.44
+ SIC Booster £36.23
Vitality Optimiser exampleUsing Vitality Optimiser to help customers get more cover
+ Vitality Optimiser £33.79*
Engage with Vitality to keep the premiums low and stay healthy
A cinema ticket £23.79
*Including the cost of Vitality Plus fee of £3 per month. Prices as at 21 July 2014
With Vitality Optimiser Charlie gets more cover
and pays less
Charlie– 30 years old – Takes out Comprehensive Serious Illness Cover– Essentials Plan– 25 year term – £100,000 sum assured – He also goes to the cinema once a month
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Original severity: D Original severity: C Original severity: B
Cancer Coronary artery by-pass grafts Aorta graft surgery
Heart valve replacement or repair Heart attack of specified severityBy-pass graft surgery to three or more coronary arteries
Alzheimer’s disease - resulting in permanent symptoms
Loss of a single hand or footHeart attack ejection fraction of between 40% and 45%
Benign brain tumour - resulting in permanent symptoms or surgery
Loss of use of a whole hand Loss of a single limb
Coma - resulting in permanent symptoms Surgery for drug resistant epilepsy Any neurological disease inability to perform 3 out of 6 functional activity tests
Motor neurone disease - resulting in permanent symptoms
Any other cardiac condition ejection fraction of between 40% and 45%
Multiple sclerosis - resulting in current symptoms Bilateral hemianopia
Parkinsons disease - resulting in permanent symptoms
Connective tissue diseases - 3ADLs
Stroke – resulting in permanent symptoms Cardiomyopathy ejection fraction of between 40% and 45%
Traumatic head injury - resulting in permanent symptoms
Fibrotic lung disease with transfer factor 35% and 39% of predicted
Creutzfeldt-Jakob disease - resulting in permanent symptoms
Guillain-Barre syndrome
Dementia - resulting in permanent symptoms Home oxygen therapy
Encephalitis - resulting in permanent symptomsHypertrophic cardiomyopathy - maximal LV wall thickness between 15mm and 25mm
Muscular dystrophy Severe chronic renal impairment
Progressive supra-nuclear palsy - resulting in permanent symptoms
Stage IV chronic obstructive pulmonary disease
Spinal tumourThird degree burns covering 15% of the body’s surface area
Which conditions are boosted to 100%?
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Severity A conditions boosted from 100% up to 200%:
Alzheimer’s disease - permanent failure 4 out of 6 functional activity tests
Loss of muscle power resulting in the inability to gripProgressive supra-nuclear palsy - permanent failure 4 out of 6 functional activity tests
Any neurological disease - permanent failure 4 out of 6 functional activity tests
Loss of speech Rheumatoid arthritis - permanent failure 4 out of 6 functional activity tests
Benign brain tumour- permanent failure 4 out of 6 functional activity tests
Mental and behavioural disorder - persistent confusional state to age 70
Severe visual impairment
BlindnessMental and behavioural disorder - total lack of social interaction to age 70
Stroke with residual deficit measuring 4 or above on the modified rankin scale
Cauda equinaMotor neurone disease - permanent failure 4 out of 6 functional activity tests
Systemic lupus erythematosis - permanent failure 4 out of 6 functional activity tests
Coma causing permanent inability to perform 4 out of 6 functional activity tests
Multiple sclerosis - permanent failure 4 out of 6 functional activity tests
Systemic sclerosis (scleroderma) - permanent failure 4 out of 6 functional activity tests
Creutzfeldt-Jakob disease- permanent failure 4 out of 6 functional activity tests
Muscular dystrophy - permanent failure 4 out of 6 functional activity tests
Third degree burns
Dementia - permanent failure 4 out of 6 functional activity tests
Paralysis of limbs Total and permanent disability - unable before age 65 to do at least four work tasks ever again
Encephalitis causing permanent inability to perform 4 out of 6 functional activity tests
Parkinson’s disease - permanent failure 4 out of 6 functional activity tests
Total and permanent disability - unable before age 70 to do your own occupation ever again
Giant cell arteritis - permanent failure 4 out of 6 functional activity tests
Permanent faecal incontinence Total and permanent disability - unable to do at least four tasks designed to assess whether you can look after yourself ever again
Loss of hands or feet Persistent vegetative stateTraumatic head injury - - permanent failure 4 out of 6 functional activity tests
Loss of manual dexterityPolyarteritis nodosa - permanent failure 4 out of 6 functional activity tests
Wegener’s granulomatos - permanent failure 4 out of 6 functional activity tests
Which long-term illnesses are boosted above 100%?
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How are long-term illnesses boostedAge related boost up to 200% of cover
Age attained at date of diagnosis % of Serious Illness Cover paid
16 - 24 200.0
25 197.5
30 185.0
35 172.5
40 160.0
45 147.5
50 135.0
55 122.5
60 110.0
64 and older 100.0
• The % of cover paid will decrease by an additional 2.5% for every year they are diagnosed after the age of 24. For lives 24 or younger we will pay 200%, and for those 64 and older we will pay 100%.