BT Protection Plans: latest product updates

BT has introduced enhancements to its Protection Plans product suite, with increased life insurance cover for farmers and homemakers, reduced medical requirements for clients aged under 45, and updated medical definitions among the key features.

Kim Cohen, Head of Product, Life Insurance, said: “At BT, we’re committed to reviewing our products to ensure that our offer includes the most up-to-date and relevant features and benefits for our clients.

“To deliver even greater value, we are making life insurance simpler and more accessible, by streamlining the underwriting process so it’s easier for clients to obtain the cover that’s right for them.”

Underwriting enhancements

BT has introduced a number of underwriting enhancements including:

  • Increased sum insured limits for a wide range of occupations (such as accountants and doctors) under BT’s Professionals Package;
  • Increased the sum insured limits for total permanent disability (TPD) (any occupation) cover for farmers, from $3 million to $5 million;
  • The amount of cover that is available to ‘homemakers’ has also increased: $2.5 million for Term Life and TPD; and $1.5 million for Living insurance;
  • Medical tests are no longer required for clients who are under 45 years of age, when they apply for an income product with a monthly benefit of up to $15,000.

“The changes are aimed at providing clients with access to greater levels of protection and certainty should the unexpected happen, and also make it easier for clients to obtain cover,” Ms Cohen said.

Premium rate guarantee

From 28 August 2018, BT is applying a two-year rate guarantee for all new policies – giving advisers and clients access to the same premiums for two years from the policy commencement date, other than in relation to standard increases (such as age-based adjustments and Consumer Price Index adjustments) or customer-initiated alterations.

BT is committed to reviewing its medical definitions for Protection Plans at least every 12 months to ensure its policies reflect the latest changes to clinical terminology and medical advancements.

The new Supplementary PDS includes six updates to medical terms to give clients greater clarity at claim time. For example, the angioplasty advancement benefit no longer requires a six-month wait between procedures, allowing multiple partial Living insurance benefit claims for different angioplasty events. In addition, the severe burns definition now clearly applies regardless of the cause of the burn to reflect updated medical terminology.

A number of other enhancements will also be included in the update:

  • Streamlined waiting period requirements for income protection policies;
  • Simplified process for clients exercising the TPD Continuation Benefit – removing the requirement for clients to provide ongoing evidence of employment after the TPD Continuation has been exercised at age 65, as long as the client continues to actively work on a full-time basis; and
  • Removal of exclusions relating to Children’s Benefit and Child Support Benefit – providing better protection for clients who have children.

The Supplementary PDS will be available from 28 August on and