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What is Multi Claim Protection Cover (and how does it work)?

September 18 2019 6 min read Specified Illness Cover

image of a bat

You know how in Batman – the cartoon, film, or comic, you choose – the big lad himself will go toe-to-toe with a villain. Then he’ll reach into his trustee utility belt to get whatever tool he needs to save the day?

Well, the tools come in 10 pouches (I Googled this, dear internet, for I am not a nerd who automatically knows such things) and include his Batarang, napalm (as ya do), a tranq gun and smoke pellets.

Multi-claim Protection Insurance – a new type of cover from Royal London – is a bit like the Bat-belt of insurance. Mind, I wouldn’t try and use it to fight crime as throwing a policy document at The Joker won’t accomplish much.

No doubt, news of a new type of insurance is wildly exciting for all of us.

So, on the count of three: 1, 2, 3.

YAAAAAAAAY NEW INSURANCE.

The number one reason I’ll be recommending Multi-Claim Protection Cover

Before we get into the nuts and bolts of how it works, here’s why I think it’s an excellent idea.

It’s more inclusive than some other types of protection cover.

For instance,  say you have diabetes, cancer or heart issues, you can still get Multi Claim Protection cover with relevant exclusions. Those conditions will disqualify you from run of the mill serious illness cover and income protection.

Unfortunately, some conditions will still rule you out. I have yet to get a client with HIV covered, also a client with a benign brain tumour was declined.

As we specialise in helping clients with a pre-existing condition, I know how relieved they will be to have this option.

Before now, all we could offer clients with pre-existing conditions was Cancer Only Cover.

What is Multi-Claim Protection Insurance

Or: ‘oh God, do we really need another one?’

Multi-claim Protection Insurance (MCPC) is very much the new kid on the block and is currently only offered by Royal London Ireland.

Straight from the horse’s mouth in Royal London:

MCPC is, “is a unique, severity-based policy aligned with the progression of modern medicine and health.

So what does that mean, exactly?

With MCPC, Royal London is moving away from paying out only when you meet the definition of a specific illness. Instead, MCPC will pay claims based on:

  • The impact caused by a medical condition or treatment
  • How severe that impact is

It protects you from a broad range of possible health setbacks that may impact you and your lifestyle. It is designed to be easy to understand and to potentially payout multiple times over the lifetime of your policy

An easy-to-understand policy that’s designed to pay out multiple times over the lifetime of your policy?

Call me a cynical old fart, but that’s a first for insurance.

What makes Multi-claim Protection Insurance different from Serious Illness Cover?

The words ‘severity’ and ‘multi-claim’ are significant differences. Namely, you can make multiple claims (up to the value of your cover) for a range of things covered in your policy (known as claim events – see table below)

Multi-claim Protection Insurance claim events

For example, you might get ill and have to stay in the hospital for five weeks. If this happens you make a claim against your policy for 10 per cent of your cover.

Later on, you might become reliant on medical devices (let’s not get into the specifics and jinx your actual life) so make a claim for 75 per cent.

Later again, when you’re much older, you’ll have a touch of angioplasty (just a touch now – we’re not about to kill you off just yet), and you can claim another 5 per cent of your cover.

And the beautiful thing is even if you make a claim, your premium won’t increase!

Just remember that you can’t exceed the maximum amount of cover you’re insured for – for example, €100,000.

For those of you who love bullet points, here’s what makes MCPC different from serious illness cover.

  • Payouts depend on the impact of a medical condition or treatment.
  • You can make multiple claims.
  • Claims can be paid for medical conditions (like MS), treatment (such as chemotherapy) and the inability to perform specific day to day tasks without help.
  • It’s easier to know when you can make a claim. For example, if you need chemo, you can make a claim, you don’t have to prove your illness meets the strict definition of cancer found in a serious illness policy.
  • Unfortunately people who have had cancer are at a higher risk of getting a second cancer, similarly, people who have had a stroke have a higher risk of a cancer diagnosis. MCPC continues after your first claim allowing you to make multiple claims for various conditions.

Why would an insurer give you the option to make multiple claims?

If you take off the cynical specs, it looks like this could be a good deal for you and that you actually stand to benefit.

 

According to the folks at Royal London, the motive here is that because medicine has improved, people are getting earlier diagnoses, faster treatment, and recovering quicker so illnesses are having less of an impact on people’s lives. Following treatment, many people return to life and work as normal in a short space of time. Therefore there isn’t such a need for a product that pays out 100% of the claim in one go.

You could say that Multi-claim Protection Insurance is an insurance company finally stepping up to the plate with an illness cover policy that actually reflects modern life.

Of course, you could also say it’s a marketing-driven move to win market share.

But sure look it, you didn’t hear that here first.

Let’s look at an example of how it might work in real life.

Jim is 50 and has a policy for €100,000. He’s been working on Brexit negotiations and the backstop for the last seventeen thousand years (what, it’s topical?) and suffers a heart attack.

He makes a claim for 20 per cent of his cover, netting himself €20,000 while the political world continues to spin into havoc around him.

Six months later he loses his hand in a tragic non-Brexit related accident and makes a claim for 25 per cent.

Finally, several years later (a Jammy Dodger hasn’t been seen in Britain for at least a decade), Jim has heart failure and requires heart surgery. However, the one-two punch of MCPC is another 70 per cent of his policy which pushes him over the 100 per cent.

He’ll get the remaining 55 per cent, or €55,000 to cover his costs.

A family who insurances together…stays together?👪👨‍👨‍👦👩‍👩‍👦

For the pragmatists and family (wo)men out there, Royal London’s Multi-claim Protection Insurance does have one really great feature.

If your child gets seriously ill, Royal London will make a payment (completely separate to your policy) of up to €25,000 to help you out. Your kids are covered up until they turn 18/25 if in full-time education i.e when they officially become adults (and become professional leeches, instead of unpaid leeches).

There’s also a death payment of €7,000 if they die, which honestly doesn’t bear thinking about – but it’s good to know it’s in there too.

Royal London  also includes an additional benefit of €5,000 if you have a premature baby who is born before the end of the 32nd week of pregnancy.

I don’t actually have anything snarky to say about this, as it’s actually just a bit sound.

It’s hard to talk about children’s cover, but if you want to learn more, here’s an article I wrote.

https://lion.ie/life-insurance/childrens-life-serious-illness-cover/

If you’re not a fan of bullet points but love a list, you’re in for a treat.

Seven reasons you should at least consider Multi-Claim Protection Cover

  1. It’s an improved form of serious illness cover mixing the old; pays out should you meet the definition of an illness like MS) and the new; pays out for treatment (e.g chemotherapy) and the impact of an illness (e.g. if you can’t dress without help for six months or more)
  2. It can payout multiple times so you can retain some level of cover even after making a claim. For the most severe health events such as death and terminal illness, the full amount is paid out.
  3. It’s easier to understand what’s covered (see Claims Trigger table above)
  4. It covers the illnesses that give rise to the majority of serious illness claims (cancer, heart failure, stroke, MS).
  5. The scope for making a claim is broader so it’s more likely to payout even if that payout is smaller. If you like to hedge your bets, prefer an each-way bet to an on the nose, it’s for you.
  6. It’s more affordable than serious illness cover.
  7. You automatically qualify for access to Royal London’s Helping Hand service which includes unlimited one to one telephone access to your personal nurse advisor as well as more practical support services if recommended by your nurse advisor. The service is available to you, your spouse or partner and children as soon as your policy starts.

1 reason you shouldn’t

Multi Claim Protection Cover. Seriously, could they not have chosen a snazzier name. I’ve known about this product for months and still get the name wrong. MPCC, MPCP, MCPP.

Over to you…

Your best bet is still Income Protection, but if that’s not an option, you can’t go too far wrong with Multi-Claim Protection Insurance – just make sure you know what’s actually covered in your policy. And buy it with indexation if it’s offered.

If you need any help working any of the particulars out, you can catch me on 057 9320836. Wondering if MPCC, MPCP, MCPC is for you? Complete this questionnaire and I’ll make a recommendation for you based on where you are in life. It’s free!

Right, that’s enough from me, I’m outta here.

 

 

Specified Illness Cover
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What's the Difference between Additional and Accelerated Serious Illness Cover?

Remember being 14 or 15 in maths class in school? Your teacher, probably a bit of a gowl, would spend ages explaining the complicated maths on the board and then he’d ask you if you understood. You probably didn’t, but you said ‘yes’ anyway because you didn’t want to look like an eejit.

Next thing you know, Mr McGowl has asked you to come up to the board to solve an equation for ‘x’. You couldn’t find that ‘x’ if it was inscribed onto your forehead.

And all you can do is go up there and write some crap on the board while Mc Gowl tuts away.

The insurers quite often play this game when they name and explain things. Even with the best of intentions (I’ll let you consider how true that might be), they have a way of explaining things so that you can’t actually figure it out.
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