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Five things you might not know about Serious Illness Cover

Published: 10/12/2021

Vitality’s Serious Illness Cover (SIC) covers significantly more conditions than any other provider and stays in place for longer. Here are five interesting facts.

What do a 25-year-old male suffering from Crohn’s disease, a 35-year-old female diagnosed with a pulmonary embolism and a 32-year-old male who experience a detached retina all have in common? Simple. They all received a Serious Illness Cover payment for a condition that isn’t paid by any other provider in the market.

As verified by Defaqto, Vitality SIC covers all heart attacks, strokes and more cancers1 - and significantly more conditions3 – than any other insurer. Here, we unpack five facts about a product which provides comprehensive severity-based coverage designed to stay in place for longer.

1. Your clients are more likely to receive a pay-out on Serious Illness Cover2

Rather than paying out an arbitrary amount, Vitality SIC pays out based on the impact each condition will have on lifestyle. Paying out appropriate amounts for less severe conditions allows Vitality to offer more comprehensive coverage over time, rather than just a full lump sum for a more severe diagnosis later down the line.

2. One in 12 claims for SIC were for conditions only covered by Vitality

Rather than paying out a set amount for a limited number of conditions, Vitality’s Serious Illness Cover pays out a severity-based payment across a broader set of conditions allowing more comprehensive cover and increased likelihood of claim. One in 12 of all claims paid last year were for conditions only covered by Vitality3.

3. Pulmonary Embolisms was the most common unique condition last year

Pulmonary Embolisms was the most claimed upon unique condition in 2020. This was followed by moderately severe inflammatory bowel disease without the need for surgery (such as Ulcerative Colitis and Crohns Disease) and surgery for cardiac arrhythmia (irregular heartbeat)3. It wouldn’t be unreasonable for most people to expect to be covered for one of these conditions. Even if they were expecting a pay-out, they would only get one if they had Vitality Serious Illness Cover.

4. Almost 10% of SIC claimants had claimed previously on their plan

With SIC, any plan can be claimed on an unlimited number of times, up to three times the level of the initial cover selected. This helps ensure cover stays in place for longer, while preventing members from becoming financially vulnerable if an illness recurs or they suffer an unrelated secondary condition. Last year, one in 11 claimants had claimed previously on their plan and one in 20 were making their third claim or more2.

5. Serious Illness Cover can pay out multiple times for cancers, heart attacks and strokes

Many advisers understand the value of severity-based cover – on the basis that smaller, sequential payments over time, based on impact provide more comprehensive coverage that stays in place for longer. This is important given that one in five cancers reoccur4 and one in four strokes5 are repeats. One in five people who have suffered a heart attack will be hospital within a year with another one6. These conditions will still have a financial impact on clients and therefore should be protected against.

Find out more about the unique benefits on offer to your clients with Serious Illness Cover.

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Where to next?

  • SIC Case Study

    Cura managing director Alan Knowles was recently able to tell his client she could claim for Rheumatoid Arthritis under her Serious Illness Cover plan through Vitality.

  • Nick Telfer: Why not SIC?

    Considering its unique coverage for a number of common conditions, shouldn’t advisers feel compelled to justify why they haven’t recommended Serious Illness Cover, rather than why they have?

  • Insights Hub

    Our Insights Hub brings you our range of adviser content - from video series to articles & blogs.

Sources:
1. Defaqto verified Competitor Comparisons, Nov 2019.
2. Defaqto, Apr 2021
3. Vitality Claims & Benefits report 2021
4. National Cancer Institute, accessed 2021
5. NICE guidelines, May 2019
6. American Heart Association, 2019