How Cover Continuation and Cover Re-instatement options can help ensure your clients can continue with their existing benefits, should they be unfortunate to have to claim on their policy.
If your clients have a Protect joint life first event plan, and one of them is unfortunate enough to need to claim from either their life or critical Illness benefit, it’s really important the non-claimant can continue their valuable protection benefit for the remainder of the original term without the need to start again. After all, who knows how their health may have changed since the original application and whether they’d actually be able to take out a new plan in the future.
By exercising the Cover Continuation Option that’s included at no additional cost with every Protect joint life first event plan, the non-claimant can exercise the option to continue their existing benefits with no further medical evidence and irrespective of their state of heath at the time.
Old Mutual Wealth writes to every policyholder following a claim, offering the non-claimant the option to continue their existing cover as well as giving them an indication of the premium they will be required to pay should they wish to exercise this option.
Full details about the Protect Cover Continuation Option can also be found in About Protect.
There are two important times in your client’s life when they need a critical illness plan. The first, perhaps obviously, is when they don’t have one; and the second, more importantly, is once they’ve actually made a successful critical illness claim.
However, having successfully made a claim and received their Protect payment, your client now no longer has their critical illness plan in place. They will also be unlikely to be able to buy a new one to replace it.
With a Protect policy your clients have the option to include, at a small additional cost from outset the Cover Re-instatement Option. By selecting this option, your clients have the comfort that, should they claim from their Protect Critical Illness plan, after 12 months they’ll be able to re-instate cover for 18 critical illnesses, and if their illness is one of the 18 they will be covered for a second, separate instance of this illness. The Cover Reinstatement Option is also available on life cover policies where total permanent disability is selected.
It’s also important to remember that, if your clients have a joint life first death Protect plan the non-claimant also loses their critical illness on the first claim. However, they too can also continue their critical illness cover on the same basis as before by exercising the Cover Continuation Option.
Old Mutual Wealth writes to every policyholder after a claim offering the claimant the option to re-instate their critical illness cover as well as giving them an indication of the premium they will be required to pay should they wish to exercise the option.
Full details about the Protect Cover Re-instatement Option can also be found in About Protect.