Provider: Norwich Union Product: Mortgage Life Insurance ' is a protection policy, which provides...
Provider: Norwich Union
Product: Mortgage Life Insurance ' is a protection policy, which provides a decreasing lump sum on death or diagnosis of a terminal illness. For an additional premium, the plan offers options to effect integrated critical illness (CI) (decreasing) and/or independent CI cover (level) and/or premium protection or mortgage payment protection.
Minimum acceptance age at commencement: 16
Maximum acceptance age at commencement: 67 (60 next birthday if either CI option is selected, 55 next birthday if premium protection is selected or mortgage payment protection is selected.)
Minimum policy term: Mortgage Protection ' three years or five years if mortgage payment protection is selected.
Maximum expiry age: 70 next birthday (70 next birthday if premium protection is selected or 65 next birthday if mortgage payment protection is selected).
Maximum term (years): 40 years.
Minimum sum assured: Determined by the minimum premium.
Maximum sum assured: No limits
Minimum acceptable monthly premium: £5pm
Minimum acceptable annual premium: £50pa
Guaranteed premium rates: The sum assured payable in the event of a claim, and the premiums, are fixed at outset and guaranteed during the term of the policy.
Reviewable premium rates: No
Maximum mortgage interest rate: The sum assured payable in the event of a claim and the premiums fixed at outset are guaranteed during the term of the policy. The sum assured is guaranteed to be sufficient to repay the outstanding mortgage in the event of a claim provided:
• The mortgage interest rate is under 10% per annum when the policy is taken out.
• The mortgage payments are up to date.
• The amount and term of the mortgage do not change.
• The initial sum assured is not less than the mortgage amount when the policy is taken out.
This guarantee applies irrespective of future increases in interest rates.
Premiums paid by direct debit: Yes
Premiums paid by cheque: Yes
Single life plan available: Yes
Joint life first death plan available: Yes
Joint life second death plan available: No
Joint life same sex plan available: Yes
Monthly policy fee: £2 per month
Annual policy fee: £23.20 per annum.
Waiver of premium available: Yes. Premium protection option available at additional cost.
Waiver of premium deferred period: The deferred period may be selected from one, three or six months
Minimum age at entry to include waiver benefit: 16 attained
Maximum age at entry to include waiver benefit: 54 attained
Age waiver cover ceases for a male policyholder: 69 attained
Age waiver cover ceases for a female policyholder: 69 attained
Waiver of premium own occupation definition of disability: Where the life assured is in gainful occupation (excluding armed forces) and is under the age of 60 immediately prior to commencement of incapacity. Incapacity will mean the life assured is totally incapacitated by illness or accident and is unable to follow their own occupation and is not following any other occupation.
Waiver of premium definition of disability linked to ADLs: Where the life assured is not in gainful employment or is in the armed forces immediately prior to commencement of incapacity, or is aged 60 or more. Incapacity will mean the life assured is unable to perform unaided three or more of the following activities of daily living;
1. Transferring: The ability to move from a bed to an upright chair or wheelchair, or to use a toilet or commode.
2. Continence: The ability to manage personal hygiene.
3.Dressing: The ability to put on, take off, secure and unfasten all necessary garments and any braces, artificial limbs or other surgical appliances.
4. Mobility: The ability to move indoors from one room to another on a level surface in the insured's place of residence.
5. Feeding: The ability to feed oneself once food and drink has been prepared and made available.
6.Washing: The ability to wash in the bath or shower (including getting into and out of the bath or shower).
Mortgage interest waiver option: Yes. The option is not available if the premium protection option is selected for that life. There is an overall maximum of 150% of the total mortgage payment amount calculated at an interest rate of 10%. A separate accident, sickness and unemployment benefit can be purchased in conjunction with the policy via IFAs only.
Unemployment cover option: No, however, a separate accident, sickness and unemployment benefit can be purchased in conjunction with the policy via IFAs only.
Convertible to critical illness plan: Not applicable, however, integrated or independent CI can be added during the policy term.
Guaranteed insurability option: If the life assured moves house or applies for a home improvement loan and advises Norwich Union within three months, a new policy may be effected to cover the sum assured required for a new mortgage. The new premium will be based on the age of the life assured at the time and the premium rates then in force.
Guaranteed insurability on moving house/ increase in mortgage: Yes
Maximum age to exercise house option: 54
Maximum increase available for house option: Following a house move or home improvement before age 55, no medical evidence will be required if the new sum assured does not exceed the lower of the amount of the total mortgage loan, twice the initial sum assured or a maximum of £150,000.
Guaranteed insurability on divorce: Yes
Maximum age to exercise divorce option: No
Maximum increase available for divorce option: Benefits cannot exceed those of the original policy.
Option to increase sum assured: Yes ' by way of an additional new policy.
Option to decrease sum assured: Yes
Terminal illness included automatically: The full sum assured will be payable if the policyholder is diagnosed, in the opinion of Norwich Union's medical officer, as suffering from a terminal illness where life expectancy is no greater than 12 months from the date the condition is notified to Norwich Union and no further payment will be paid in the event of death. Terminal illness benefit does not apply in the final 18 months of the policy term.
Critical illness benefit option: The sum assured is payable on the satisfactory diagnosis of a critical illness if this option is selected. The option is available at an extra cost. The cover can be integrated and decreases in line with the death/terminal illness benefit or independent, where it will remain at the level amount.
Permanent total disability benefit option: Available under CI option. This benefit is payable if the life assured becomes totally and permanently disabled and unable to perform their normal occupation and will continue to be unable to work. The disability must commence before the policy anniversary preceding age 60. This definition cannot be offered in all situations and an alternative of being unable to perform three of the following activities of daily living may be offered: transferring, continence, dressing, mobility, feeding and washing.
In the event of a claim, satisfactory medical evidence will be required. If a claim is made under the independent CI option, life cover will continue.
Large case discount available: Yes
Non-smoker rates offered: A non-smoker is someone who has not used any tobacco products in the last 12 months.
Free cover during underwriting: Yes, from exchange to completion ' maximum three months.
Maximum free life cover period: Three months
Free accidental death cover during underwriting: From exchange to completion ' maximum three months.
Free accidental death cover period: Three months
