Risk Clinic: Lump sum vs severity-based CI

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My client has been reading about severity based payments for critical illness (CI) policies. I believe there is merit in polices that don't do this. In sales terms, what is the opposite side of the argument I can put to him?

Alan Lakey, Highclere Financial Services Only PruProtect offers a severity-based plan, although many providers are dipping their toes in the water by identifying areas where they can add value using partial payments. The major problem with the severity-based approach is that it frequently involves the use of activities of daily living (ADLs) to determine the level of disability. This in itself provides fodder for a two-day conference, but let’s consider the drawbacks as a client might view them. If the client suffers a stroke his standard CI plan pays 100% of the sum assured. His seve...

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