Suffering a fracture can lead to unforeseen financial stress particularly for those who have physically demanding occupations. Fractures can make it difficult or even impossible for clients to work for weeks or even months whilst they recover. In this article we look at Fracture cover amid a number of recent changes ranging from Guardian and AEGON removing the benefit altogether to other insurers apply automatic exclusions.

Those that offer Fracture Cover include it as an added value benefit which will not affect the client’s ability to claim on the core cover. Currently all providers cover the life assured only and not wider family members. The table below shows which insurers currently offer Fracture Cover and the products they are available on.

What products do providers offer fracture cover with?

Some providers offer Fracture Cover at no additional cost and automatically include this in their policy whilst others offer the benefit as an add on to their plan with an additional monthly premium applied. The table below shows each provider’s charging structure.

What do providers charge for fracture cover?

Fracture Cover can insure clients against various types of fracture, with providers specifying a different pay-out for each one. In general, the bigger an impact a fracture will have on the client’s lifestyle the bigger the amount that will be paid. The table below illustrates what providers will pay-out for different bone fractures.

The table highlights that the providers who charge for Fracture Cover separately, Aviva and Zurich, offer larger pay-outs for most fracture types. Naturally, the greater the pay-out the greater the chance the client will not encounter financial difficulties.

If a client fractures multiple bones at the same time then Aviva, Cirencester Friendly and LV= will all pay out on the fracture that offers the highest pay out. Whereas Royal London and Zurich will pay out for multiple fractures.

Zurich’s Fracture Cover takes the concept further, being the only insurer who also covers ligament tears, tendon ruptures and dislocations.

What ligament tears, tendon ruptures and dislocations do Zurich cover and how much?

In recent times, some insurers have added exclusions to their fracture cover which were not applicable when the benefit was first offered. Cirencester Friendly and Royal London do not specifically state any standard exclusions on their policy however Royal London do state that fractures as a result of intentional self inflicted injury will not qualify. Aviva, LV= and Zurich state that they will exclude claims related to certain pasttimes and the table below shows the specific pastimes they list within their policy documentation. This list, however may not be exhaustive. If an adviser has a client that takes part in a hobbie or pastime that may be considered dangerous, we would encourage them to contact the insurer to check whether a fracture due to this would be covered.

*LV= have applied these exclusions from the outset

These unique features in Zurich’s Fracture Cover make for an appealing proposition. With their generous pay outs for fractures and the fact they offer the service across their whole product range, Zurich appear to be leading the way in Fracture Cover. For those that do partake in “hazardous pursuits” the fact that Cirencester Friendly and Royal London do not automatically apply exclusions may be favourable, however we would encourage advisers to speak to their insurer if they have such a client to be safe.