Provider: Liverpool Victoria
Product: MIMI ' Income Protection
Minimum acceptable age at entry: 17
Maximum age at entry for males and females: 59
Minimum policy term: Five years
Retirement age 50 and 65 available: Yes
Maximum annual benefit available: If Liverpool Victoria accept a claim the total monthly benefit payable will be worked out the following way:
(a) If the life assured is working in their normal occupation when incapacity starts Liverpool Victoria will pay the lower of: the full amount of income protection benefit at the time, or the maximum monthly benefit as defined below.
(b) If the life assured is unemployed when incapacity starts
Liverpool Victoria will pay the lower of: the full amount of income protection at the time, or £1,000 a month less the monthly equivalent of the benefit of any other sickness or accident insurance that the life assured has.
Liverpool Victoria may increase the limit of £1,000 in the future. The policyholder is not entitled to any refund of premium if Liverpool Victoria deso not pay the full amount of income protection benefit. Liverpool Victoria will work out the maximum monthly benefit referred to above in the following way. First 50% of the life assured's income before incapacity is taken and divided by 12 to obtain the monthly equivalent. Then Liverpool Victoria deducts the monthly equivalent before tax of any of the following payments that the life assured receives or is entitled to receive, which relate to the period for which benefit is paid:
• The benefit from any other sickness or accident insurance on the life assured's life, including any mortgage payment protection.
• Health policies.
• 60% of ill-health or retirement benefits from any source.
• 60% of any continuing income excluding income earned before the start of incapacity.
Finally, if the life assured does not qualify for any State benefits in respect of their sickness or accident, Liverpool Victoria adds the basic State Long-term Incapacity Benefit (or its equivalent) at the time. The result is the maximum monthly benefit referred to above. Liverpool Victoria may alter the way in which works out the maximum benefit if any of the following change:
• The rules for determining State benefits paid in the event of incapacity.
• The way income protection benefit is taxed.
• The way any of the payments Liverpool Victoria takes into account in working out the maximum benefit are taxed.
Minimum acceptable monthly premium: There is a minimum premium of £7 per month for the plan, but no minimum on the premiums for individual covers.
Minimum acceptable annual premium: Not applicable, premiums must be paid monthly by direct debit.
Monthly policy fee: £2 for one cover, £1 for subsequent cover.
Female premium loading: Separate rates apply.
Increase term after start date: No
Decrease term after start date: Yes
Increase benefit subject to underwriting: No increase options are available, other than index-linking of benefits.
Decrease benefit subject to underwriting: Yes
Waiver of premium available: Yes, waiver of premium is optional. Premiums will be waived if the life insured has been incapacitated longer than the deferred period selected. Premiums will continue to be waived as long as the life insured remains incapacitated or (if longer) while any rehabilitation or proportionate benefits are being paid under any income protection cover for that insured under the plan.
Waiver of premium cover will stop when the insured reaches 65. If waiver of premium is taken out, then this will apply to the total plan premium. As new covers are added or existing covers increased or altered, Liverpool Victoria will normally extend waiver to cover the new plan premium. However, Liverpool Victoria will reserve the right to decline waiver on any new, increased or altered cover if the insured's health has deteriorated in the meantime. Waiver of premium will always be extended to cover index-linked increases.
Waiver of premium deferred period: The deferred period will be the same as the benefits deferred period, either one, two, three, six, 12 or 24 months.
Waiver definition same as policy: Yes
Waiver benefit amount indexed: Yes for index linked policies only.
Benefit amount index linked: Index-linked cover will increase on each anniversary of the commencement date of the plan in proportion to the increase in the General Index of Retail Prices for the 12-month period ending three months earlier. If the first such anniversary falls within three months after the start date of cover, no increase will apply at that date. During the claim, any increase will be limited to 12% per annum.
Benefit amount and payments remain level at all times: Yes, benefit may be level or index-linked.
Guaranteed premium rates: The policyholder has a choice of guaranteed or reviewable rates.
Critical illness (CI) benefit available: Yes. The types of cover available under MIMI are:
• Full CI plus TPD.
• Full CI but not TPD.
• TPD only.
• Combined life and CI with buy-back option.
• Mortgage payment protection ' health.
• Mortgage payment protection ' integrated health (cover ceases when a CI claim is paid.)
• Mortgage payment protection ' unemployment.
• Waiver of premium.
Terminal illness benefit available: Yes, automatically included if death benefits are included in the plan.
Proportionate benefit available: Yes, if the life assured recovers from sickness or accident but is not fit enough to go back to work in their normal occupation Liverpool Victoria will pay proportionate benefit provided:
• Due to sickness or accident the life assured is totally unable to carry out the essential duties of their normal occupation.
• The life assured takes up a different occupation.
• The life assured's income in their new occupation is lower than their income before incapacity.
Rehabilitation benefit available: Yes, if once Liverpool Victoria has started to pay benefit for a claim, the life assured goes back to work in their normal occupation but only on a part-time basis, Liverpool Victoria will pay rehabilitation benefit provided:
• The life assured has been incapacitated for an unbroken period of at least three months.
• The life assured goes back to work for less than 30 hours a week.
• The life assured worked for more than 30 hours a week immediately before their incapacity.
• The life assured's income from part-time work is less than their income before incapacity.
Relapse benefit available: Yes, if within six months of returning to work and incapacitated from the same cause.
Unemployment cover available: Yes, available under separate contract.
Cover operates world-wide: Yes, Liverpool Victoria covers the life assured if they suffer sickness or accident anywhere in the world.
Death benefit available: Option to include as a separate benefit.
Maximum % of income insurable: Benefits in claim will be limited to 50% of the insured's income. All other sickness and accident insurances will be taken into account, including any mortgage repayment benefits payable under the plan.
State benefits deducted from benefit amount: No
Standard definition of disability: By incapacity (or incapacitated) Liverpool Victoria means that due to sickness or accident the insured is totally unable to carry out the essential duties of their normal occupation and are not doing any other work. Essential duties are those duties which cannot reasonably be omitted without affecting their ability to carry out their normal occupation.
Own occupation definition of disability: By incapacity (or incapacitated) Liverpool Victoria means that due to sickness or accident the insured is totally unable to carry out the essential duties of their normal occupation
and are not doing any other work.
Deferred periods available: Yes, periods of one, two, three, six, 12 or 24 months will be available.
Two deferred periods in one plan: Yes
