Guardian has increased the amount it will pay when a policyholder is diagnosed with a condition that meets one of its additional payout definitions from 25% to 50% of the cover amount up to a maximum of £50,000.
The exception to this is for low-risk non-melanoma cancer, which remains at 10% of the cover amount up to the same maximum.
Additional payouts are designed to give customers the financial ability to make lifestyle changes or help fund additional treatments that they may need if they’re diagnosed with a critical illness that meets one of the additional payout definitions.
Additional payouts don’t impact the policyholder’s ability to make a claim for a full payout in the future and can be payable more than once, but not for the same condition twice. The exception to this is carcinoma in situ which can be claimed multiple times so long as the site of each carcinoma in situ is different.
This product change applies to all new quotes and applications for Guardian’s Critical Illness Protection and Combined Life and Critical Illness Protection from today. As this is not a definition change, as required to fall within the scope of Guardian’s cover upgrade promise, this product change doesn’t apply to Guardian’s existing policyholders.
Jacqui Gillies, marketing and proposition director at Guardian, said: “Additional payouts offer much needed financial breathing space and the ability to make lifestyle modifications or help fund additional treatment to those people who’re diagnosed with something critical, but not critical enough to meet a full payout definition.
“We know advisers like our crystal-clear definitions and our approach to claims, however some partners were telling us that their clients would value a higher additional payout amount. We’ve listened to that feedback and it’s why we’ve announced this change today.”
Alan Lakey, co-founder and director at CIExpert, added: “We know from our Critical Thinking Report 2024 that customers value the ability to make multiple claims on a policy. This increase strengthens Guardian’s position in terms of the cover offered for customers diagnosed with a condition that meets an additional payout definition.
“While these conditions are not deemed to be critical enough by the medical profession, and hence by insurers, to trigger a full payout, they do still have a serious impact on lives. The beauty of additional payouts is that they don’t impact the ability to make a full claim in the future.”