To provide clients with more control and ability to tailor their product, in 2020 we released Crisis Extension which can help clients reduce their premiums while maintaining their level of cover for claims which are of a degree of severity. By providing more control, clients have a more personalised and flexible long-term cover allowing for multiple claims and keeping them covered even after a claim.
A traditional insurance product can be tailored to a certain extent. Changes tend to impact the premiums and cover amount, for example, when considering reducing the cost of a policy, generally the cover amount is reduced.
As your client’s life changes, so too should their life insurance
Crisis Extension is taken out in conjunction with our Crisis Recovery benefit but is treated independently, meaning your clients get to choose the sum insured for both types of cover. These are like levers that can be pulled in either direction delivering flexibility that best suits their needs.
This means they can choose to add as much or as little toward their Crisis Extension sum insured. This flexibility allows them to get more cover for the most serious events, at lower premium rates, as Crisis Extension premiums are lower than Crisis Recovery premiums.
If your client meets the definition of both a Crisis Event (under Crisis Recovery) and a Crisis Extension Event, both benefits are payable. Alternatively, the client may first meet the definition of a Crisis Event (under Crisis Recovery) and receive a Crisis Recovery claim. Should the condition progress or deteriorate, they may then later meet the definition of the Crisis Extension Event, receiving an additional payout.
The great thing about Crisis Extension is that it covers major Crisis Events that generally require additional care – and additional financial support – to lessen the burden on your clients.
It’s important to remember that not all events create financial losses to the same degree, and so as an adviser you’ll always have to recommend cover on the worst possible scenario. Crisis Extension helps by determining which illness will have a more significant financial impact on your client while giving options on what levels of cover are held in each benefit.
To see how Crisis Extension works in conjunction with Crisis Recovery, click the button below.