Cirencester combines CI and IP plans

Michael Lloyd

October 23, 2019

The Cirencester Friendly Society will include children’s critical illness cover within its income protection plans.

This is a first for the industry. Should a plan-holder’s natural, adopted or step-child be diagnosed with one of 10 named critical illnesses a fixed sum of £2,500 will be paid out.

The benefit is provided at no cost for both new and existing members.

Alan Lakey, director at CIExpert, said: “Historically income protection and critical illness have been separate plans catering for different outcomes.

“IP is essentially sick pay and is designed to provide tax-free income during periods of sickness, whereas critical illness usually provides a tax-free lump sum, often designed around the mortgage commitment.

“Cirencester has recognised that when a child is critically ill the parents will spend all their time at the hospital and as a result their finances suffer, particularly if they are self-employed.

“The idea of providing a worthwhile sum to the policyholder reflects back to their friendly society ethos of trying to help their members and is to be congratulated.”

The 10 illnesses include: bacterial meningitis, cancer, loss of hand or foot, kidney failure, heart valve repair or replacement, benign brain tumour, major organ transplant, open-heart surgery, third degree burns and traumatic brain injury.

The child must be under age 21 and must survive 14 days from the date of diagnosis.

Claimants can also apply for a grant from Cirencester’s 125 Foundation which assists with property modifications or mobility aids.

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