HSBC has unveiled a series of enhancements to its critical illness policies, extending cover to address concerns over NHS delays and strengthening benefits for younger claimants.

The changes, announced as the bank transfers its protection arm to Chesnara, apply across both its Core and Plus critical illness plans, with the latter receiving the most substantial improvements. They follow warnings that post-Covid waiting lists for NHS operations have stretched to a record 7.4 million.

CI Plus now includes NHS waiting list protection for 38 full and additional payment conditions, up from six previously.

This means claims will be paid for a wide range of illnesses if a patient is added to an NHS waiting list, including Crohn’s disease, less advanced cancers, pituitary tumour and ulcerative colitis.

ENHANCED PAYOUT

Nine conditions, among them blindness, heart failure, kidney failure and motor neurone disease, will now qualify for an enhanced 100% payout – up to £200,000 – if diagnosed before age 60. The plan also increases the benefit for accidental hospitalisation from £5,000 to as much as £50,000 or 50% of the sum insured.

For both Core and Plus policies, wording has been updated to improve clarity and broaden coverage. Notable changes include reduced qualifying periods for intensive care, additional coverage for less advanced prostate cancer treatment, and refined definitions for blindness and traumatic brain injury.

Children’s critical illness cover has also been extended to include NHS waiting list triggers for congenital heart disease.

New to the Plus plan is a fixed £5,000 payment for pregnancy complications, also available to the partner of the life insured, with a nine-month qualifying period.

MEANINGFUL SHIFT

Alan Lakey, director of CIExpert, said the reforms mark a meaningful shift in the quality of cover. “These improvements are significant in that they extend the claim potential due to the NHS waiting list coverage and they also reflect the long-term financial impact of suffering certain conditions prior to age 60,” he said.

He added: “Our Critical Thinking research identified concerns amongst consumers about delay in treatment from the NHS, and the introduction of accelerated payments for less advanced cancers is an innovation that will provide significant value for clients going forward as individuals are increasingly considering private treatment to avoid long delays and the potential for their health to deteriorate further whilst they are waiting.

“An impressive and well-thought-out series of improvements which will push both plans up the quality table.”