Zurich has also extended the age range on its total and permanent disability option, ending prior to age 71, and available to add on until reaching age 66.
It has also added a work task based definition of disability. Previously Zurich offered an ‘own occupation’ version, and those occupations that failed to qualify were denied total and permanent disability (TPD) cover.
It will now offer an alternative, where a claim is met upon failing three of six tasks. These TPD changes apply to all of the plan variations.
A spokesperson for Zurich said: “One might think that there are few reasons for an adviser to recommend a stand-alone critical illness plan – compared to an accelerated life plan.
“However, many advisers are now using these within a menu to create a bespoke protection package for their clients.
“The Swiss Re Term & Health Watch 2021 advised that stand-alone CIC sales grew by 31.3% during 2020 although it is clear that the majority of these purchases were not via advisers but via D2C firms.
“Zurich considers terminal illness cover to be a critical illness condition so whilst the standalone plan will not pay out on death it will pay out if the client is deemed likely to die within the next twelve months.
“The introduction of a work-task based TPD will offer a degree of comfort to those in higher-risk occupations although statistics show that around 70% of work-task claims are declined due to the onerous requirement to fail three of the six tasks.
“All in all this is a worthwhile move which enables advisers greater choice and flexibility when assisting their clients.”
