"We have considered feedback and insight from advisers, customers, and industry experts to develop a series of enhancements that ensure we can financially assist more people who are facing difficult health diagnoses."
- Richard Waters, head of protection distribution at HSBC Life UK
HSBC Life UK has announced significant enhancements to its Critical Illness Cover (CIC) proposition, across both its CI Core and CI Plus plans.
“We have considered feedback and insight from advisers, customers, and industry experts to develop a series of enhancements that ensure we can financially assist more people who are facing difficult health diagnoses,” explained Richard Waters, head of protection distribution at HSBC Life UK (pictured).
Policyholders can now benefit from a top-up payment feature, available up to the age of 60 on its CI Plus plan. Claims made for blindness, heart failure, kidney failure, liver failure, major organ transplant, motor neurone disease, open-heart surgery, Parkinson’s, and traumatic brain injury will receive an additional payment.
This payment recognises the additional costs policyholders may face following a diagnosis and will be either £200k or the sum assured - whichever is lower.
HSBC Life UK has also enhanced CI definitions across both plans (for new policyholders only) to provide greater clarity, and improved protection for conditions such as less advanced prostate cancer which is now covered for any form of treatment that removes or destroys cancer cells.
For CI Plus policyholders, the coronary angioplasty definition has been upgraded to pay when a single coronary artery has undergone angioplasty or stent insertion. The amount payable for an accidental hospitalisation claim has also been increased from a fixed £5k up to the lower of £50k – or 50% of the sum assured.
Both plans benefit from upgraded wording for blindness, paying when the visual field is reduced to 200 or less of an arc, and intensive care requiring mechanical ventilation has a reduced qualifying period from 10 to 7 consecutive days.
Anoxia/hypoxia has been removed as a named condition and added to the traumatic brain injury wording.
A fixed £5k payment for seven types of pregnancy complication, which also applies to the spouse or partner of the life insured, has been introduced – with a nine-month qualifying period applied.
Complications include stillbirth after 24 weeks’ gestation, disseminated intravascular coagulation (DIC) or eclampsia, and ectopic pregnancy with surgery to remove a fallopian tube.
Congenital heart disease is now a claimable condition with its children’s cover, offering an accelerated payment when the child is added to the NHS waiting list.
Furthermore, HSBC Life UK has increased the number of accelerated payouts available across both plans for when policyholders are placed on the NHS waiting list for qualifying surgeries.
Its CI Plus plan previously included NHS waiting list cover for six conditions, but this has risen to 38 full and additional payment conditions. Nine conditions also have a 100% enhanced payment up to £200k if diagnosed prior to age 60.
Claims for cerebral & spinal aneurysm, cerebral & spinal arteriovenous malformation, Crohn’s disease, 19 less advanced cancers, lobectomy, peripheral vascular disease, pituitary tumour, pneumonectomy, removal of the eyeball, syringomelia or syringobulbia, and ulcerative colitis on CI Plus plans will be paid after the policyholder is placed on the NHS waiting list.
Benign brain tumour and less advanced cancer of the breast claims will also be paid with either plan when policyholders join the NHS waiting list.
“45% of advisers said their customers would be more likely to purchase CIC if a payout was made as soon as they were added to the NHS waiting list. Likewise, 60% said if additional/severity payments were paid quickly enough to pay for private treatment, their customers would be more likely to buy CIC.
“67% of advisers said if their customers received a payment quickly enough to pay for private treatment for early-stage cancers, they’d be more likely to buy CIC.
“HSBC Life’s CIC payout rate of 94.4% in 2024 highlights our commitment to paying claims and our latest enhancements will make customers more financially resilient,” Richard added.
Reacting to HSBC Life’s proposition enhancements, Alan Lakey, director at CIExpert, said it’s “significant in that they extend the claim potential due to the NHS waiting list coverage and they also reflect the long-term financial impact of suffering certain conditions prior to the age of 60.”
He believes the introduction of pregnancy complications, that also extend to the life insured’s partner, “reflect the impact to the family as opposed to the individual.”
Highlighting findings from its ‘Critical Thinking’ Report, Alan noted that there are “concerns amongst consumers about delay in treatment from the NHS, and the introduction of acerated payments for less advanced cancer is an innovation that will provide significant value for customers.”
Martin O’Connell, founder of The Protection Revolution, agreed that the number of conditions for which an accelerated payment would be made when a claimant joins the NHS waiting list is “significant and comprehensive.”
“Using that payment to access private healthcare could become an attractive option to speed up the treatment and reduce the stress on the NHS. The additional payment is available on a number of conditions that aren’t age specific, making it a relevant and valuable benefit.
“Overall, a significant improvement to the HSBC Life UK CIC proposition,” he concluded.
