Critical Injury Protection

Question 1

What are the minimum conditions a policy should cover?

Answer 1

Cancer - expect less advanced
Heart attack - of specified severity
Stroke - resulting in permanent symptoms

Question 2

In order for an insurer to use predictive genetic tests, what is the amount of insurance a customer must hold?

Answer 2

Life-insurance £500,000
CIC £300,000
IP £30,000 pa

Question 3

In what ways can genetic testing not be used?

Answer 3

Predictive genetic tests to establish risk
Once in force, any subsequent tests or tests on relatives
No predictive tests from research

Question 4

What are the most common features of CIC?

Answer 4

Total and permanent disability (TDP)
Terminal illness cover - only for life and CIC. Think IHT
Benefit increases - similar to index but could be for marriage, etc.
Life buy-back
Children’s cover
Waiver of premium- 6 months
Reinstatement cover for joint policies on separation or divorce- no underwriting for new policy

Question 5

Describe Taxation on CIC

Answer 5

No tax relief on premiums
No tax on benefits
Claim will increase a person estate for IHT.

Question 6

How are group CIC policies funded?

Answer 6

Either by the employer or offered to the employee but with discounts against individual cover or reduced underwriting.

Question 7

How is group CIC paid?

Answer 7

Generally directly to the employee and tax-free.