Multi-claim protection cover is a unique form of life insurance available from Royal London.
Multi-claim protection cover (MCPC) is a relatively new, innovative type of life insurance policy.
It covers you for a broad range of possible health setbacks or medical conditions that may impact you and your lifestyle.
Here’s all you need to know about multi-claim protection cover.
What is multi-claim protection cover?
Multi-claim protection cover is a cost-effective life and illness protection policy available from insurer Royal London. Launched in 2019, this cover was the first of its kind in Ireland.
It is a severity-based policy, which means that payouts are linked to the potential impact of certain health events and the severity caused by a medical condition or treatment.
Unlike other insurance products on the market, MCPC can pay out multiple times for different illnesses over the term of the policy and can trigger multiple claims for one illness.
Its purpose is to provide a lump sum payment to help offset the impact caused by events that occur during the lifetime of the policy.
Is multi-claim protection cover the same as serious illness cover?
No, MCPC is not the same as serious illness cover.
Multi-claim protection cover tends to be more flexible than serious illness cover. It's also easier to make a successful claim.
Serious illness cover, also known as specified illness cover, covers particular illnesses, such as a heart attack. It provides a one-off lump sum payment, and you usually need to be quite sick or have a very serious condition to make a successful claim. And once you've received a payout your policy ends.
Contrastingly, MCPC provides cover for a range of conditions, some less serious, with the potential for multiple claims. Due to receiving partial payments if a claim is made, MCPC will work out cheaper than serious illness cover.
Also, with serious illness cover, you could be denied cover if you have had health issues in the past, e.g. a heart attack. However, with MCPC, you could still be eligible for cover.
You can learn more about serious illness cover in this guide.
How does multi-claim protection cover work?
Multi-claim protection cover can pay out anywhere from 5% to 100% of your cover, depending on the illness or condition. The payouts made are tax-free.
Claims can be made until 100% of the policyholder’s sum assured has fully been used up. Alternatively, MCPC can pay out the remaining sum assured should you pass away during the policy term, or if you’re diagnosed with a terminal illness.
Policy payouts can be used however the policyholder likes, e.g. taking time off work to recover, taking a holiday to recuperate, adapting their home to cope with the impact of their illness.
With modern medical and technological advancements, illnesses can now be detected earlier and treated more effectively. However, there is still a high chance of later redeveloping the same illness, or a different illness altogether. MCPC is designed to provide you with cover that will pay out multiple times if needed.
You should note that there’s no payment if you survive until the end of the term.
There are eight levels of severity, which determine how much money is paid out when you make a claim. The levels reflect the general impact that the condition or treatment may have on your lifestyle.
The percentage of cover paid out ranges from 5%, which is the least severe, to 100%, which is the most severe.
For illnesses or treatments that have a more serious impact, a higher amount is paid out. Whereas for less serious illnesses or treatments, less than 100% will be paid out, meaning that you can keep the rest of your cover in place for any future.
An illustrative example
How multi-claim protection works is best illustrated with an example:
Jane is a single, 35-year old woman. She does not smoke and currently has no children.
She takes out a single life multi-claim protection policy for the amount of €80,000, with a term of 20 years. Her monthly premium payments amount to €23.68.
Unfortunately, Jane is diagnosed with cancer in situ (this is when abnormal cells have formed, but have not spread) and is referred for surgery to remove the tumour.
As a result, Jane receives a 10% payout, as this is classified as an intermediate surgery. The payout amounts to €8,000 and Jane can spend it how she wishes.
Once the payout is taken into account, Jane now has €72,000 remaining on her cover for any future illnesses or health setbacks.
At the age of 50, Jane is then diagnosed with breast cancer. While survival rates for cancer are higher than ever, unfortunately, there's an increased risk of survivors developing a second cancer. This is the case for Jane, and she is referred for chemotherapy, radiotherapy and a mastectomy.
As she still has MCPC in place, the following is paid out:
- 20% paid out as a result of needing chemotherapy - €16,000
- 20% paid out as a result of needing radiotherapy - €16,000
- 20% paid out as a result of needing major surgery - €16,000
In this case, Jane has received a payout of 60% of her cover, amounting to €48,000.
Combined with her previous payout, she has received a total of €56,000 (70%), which leaves €24,000 (30%) left, should she experience any other health setbacks.
What are the benefits associated with multi-claim protection cover?
There's an abundance of benefits to this unique insurance cover:
- More inclusive: MCPC is more inclusive than some other types of protection insurance. If you have survived a heart attack, a stroke, or a form of cancer, you can still be eligible for cover, with relevant exclusions.
- Easy to understand: Knowing when you can make a claim is easy.
- Make multiple claims: It’s possible to make multiple claims over the term of your policy, for different medical conditions. You can retain some level of cover for the future, even after making a claim.
- Claim for a variety of reasons: You can claim for being diagnosed with a medical condition, undergoing treatment, and not being able to perform daily tasks without assistance.
- Set monthly payments: After a claim, your monthly payments will not change.
- Helping Hand Service: With MCPC, you automatically qualify for access to Royal London’s Helping Hand service. This includes one-to-one phone access to a nurse advisor for yourself, your spouse, and your children.
What illnesses are covered?
Fortunately, there are many illnesses covered by multi-claim protection cover, which will be outlined clearly in your policy documents.
You’ll be able to see the severity of each type of claim, so you will know how much money you will receive, should you make a claim.
- Intensive Care Unit (ICU) admission - 10% will be paid out
- Heart attack - 20% will be paid out
- Stroke - 30% will be paid out
- Multiple Sclerosis diagnosis - 50% will be paid out
- Major organ transplant - 100% will be paid out
- A terminal illness diagnosis - 100% will be paid out
How can I apply for multi-claim protection cover?
You can easily apply for multi-claim protection cover through bonkers.ie. You have two options of how to go about this:
1. Add it to a life insurance policy
If you’re taking out a life insurance policy on bonkers.ie, you’ll receive a callback from one of our insurance advisors once you apply for your preferred policy.
During this callback, you’ll have the opportunity to add MCPC to your insurance policy as an additional benefit.
2. Purchase it as a stand-alone product
It’s also possible to purchase MCPC as a stand-alone product. To do this, get in touch with us at (01) 256 0500 and our insurance team will guide you through the application process.
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Need any help?
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