Critical Illness Cover (CIC)

Introduction

Critical Illness Cover (CIC) pays a lump sum if the life assured suffers one of the critical illnesses as defined in the policy document and they are eligible to claim during the term of the plan. Once a claim has been paid, the policy will end and no further premiums or benefits will be payable

For full list of current conditions and definitions refer to Legal & General’s Guide to Critical Illness Cover (PDF 55Kb) for details

Underwriting Criteria

• The maximum rating is a 100% loading (extra mortality) and/or a maximum of two exclusions per policy (not per life)
• CIC is available to a maximum age of 65
• For standalone CIC the term must be between 5 and 35 years (however must end after 29th birthday and before 65th birthday)
• For Term and CIC, with guaranteed premiums, the term must be between 2 and 25 years
• For Term and CIC, with reviewable premiums, the term must be between 2 and 35 years
• Life cover is always included and is the same level of benefit as the CIC element
• Terminal Illness Cover (TIC) is always included and is the same level of benefit as the CIC element
• On reviewable standalone CIC plans, if the CIC element is declined, the whole application will be declined
• Total and Permanent Disability (TPD) is one of the Critical Illnesses covered. For further details refer to the TPD section

Premium Reduction on Cancer Exclusion

With effect from 30 November 2009, we have introduced a premium reduction when the full cancer exclusion is applied to a Critical Illness Cover policy. This reflects the resulting reduction in risk.

• The reduction in premiums with be up to 18% (the exact reduction depends in the client’s age and gender
• Any reduction will be implemented via a manual process
• Any reduction will be picked up during the underwriting process, and a new offer letter will be sent to the client confirming the reason for the reduction in premium
• Pipeline cases where the full cancer exclusion has already been applied will not be reviewed. However, the premium reduction will be applied on such cases if requested
• The premium reduction cannot be applied to existing policies
• A full cancer exclusion is applied to about 120 cases per year