Provider: MGM Assurance Product: Lifestyle Solutions This is a life and critical ill...
Provider: MGM Assurance
Product: Lifestyle Solutions
This is a life and critical illness (CI) policy with the option of accident, sickness and unemployment protection and family income benefit (FIB) cover.
Does the provider provide access to online literature: Yes
Does the plan allow life cover with accelerated critical illness cover: Yes
Is accident sickness unemployment benefit offered as part of the plan: Yes
Minimum policy term: Minimum term for level plans is one year, five years for decreasing mortgage plans.
Maximum term: 35 years
Minimum sum assured: None ' subject to minimum premium.
Maximum sum assured: Sum assureds over £2m must be referred to the reinsurers.
Cover basis: Automatic life cover. Cover provided on a level or decreasing basis
Plan can provide critical illness benefit paid as income: Yes ' FIB benefit available.
Waiver of premium available: Available as an option from outset.
Waiver with 26 weeks/six month deferred period:
Six month deferred period.
Does the plan offer an own occupation definition of disability: For the purpose of this benefit, the term incapacity means:
• If the life assured is following a paid occupation at the time the incapacity occurs; that the life assured is totally unable by reason of sickness or accident to follow his own occupation or occupations and is not following any other occupation.
• If the life assured is not following a paid occupation or normally carries out household duties at the time incapacity occurs; that the life assured is: confined to the home under qualified medical supervision; or confined to a recognised medical institution; or totally unable by reason of sickness or accident to perform least four of the following activities of daily living without the assistance form another person:
• Dressing and undressing
• Washing and bathing
• Preparing food
• Eating
• Shopping
• Climbing stairs
• General household duties such as cleaning and laundry
Waiver benefit covers both lives: For joint life plans one or both lives can be covered for this benefit.
Unemployment cover option: Accident, sickness and unemployment protection is available as an option. This benefit will provide monthly payments of the amount selected to protect:
• Mortgage commitments
• Pension contributions
• A proportion of income
If the life assured's income reduces or stops as a result of being unable to work as a result of accident or sickness, additional protection is also available should the life assured become involuntarily unemployed during the agreed term of the plan.
Accident and sickness insurance: This benefit covers incapacity as a result of an accident or sickness and is provided by MGM Assurance.
The maximum monthly benefit for which can be applied for is:
• 60% of annual gross income up to £40,000 less basic state sickness benefit plus 25% of earned income between £40,000 and £200,000.
Unemployment insurance: This benefit is provided by St. Andrew's Insurance plc.
The maximum monthly benefit for which can be applied for is:
• 60% of the life assured's annual gross income up to £40,000 less.
• Basic state sickness benefit plus.
• 25% of earned income between £40,000 and £200,000.
If involuntary unemployment has caused the life assured to be off work for at least 30 consecutive days, St Andrew's Insurance plc will pay 1/30th of the monthly benefit for each day off work. This will be paid monthly in arrears at the end of each month but backdated to the first day of employment.
Benefit will continue to be paid until the life assured has returned to work or have received 12 monthly payments, whichever occurs first. Once the life assured has received 12 monthly payments the life assured will not be able to claim for unemployment benefit again until they have worked for a further six consecutive months.
Change lives assured after start date: Yes ' there is an option to add or remove a life assured.
Variations to plan by endorsement to policy: Yes
Guaranteed insurability option: There are three options:
• Guaranteed insurability on marriage This option allows the insured to increase the amount of cover on their marriage by the lesser of £100,000 or 50% of the original level of life cover benefit. There is an overall limit of £100,000 to the total of all increases made using this option. MGM Assurance must be notified before the marriage date that the insured intends to use this option and the increase must be made within three months of the marriage. MGM Assurance will require evidence of the marriage before they process the increase.
• Guaranteed insurability on childbirth or adoption. This allows the insured to increase the amount of cover if the life assured becomes a parent of a child whether by birth or by legal adoption, by the lesser of £30,000 for each child or 25% of the original level of life cover benefit.
• Guaranteed insurability on moving house / increase in mortgage/loan. This option allows the insured to increase the amount of cover they have if they are granted an increase in the amount of a loan used to purchase a new home or make improvements to their existing home. MGM Assurance must be notified before the completion date that the insured wishes to use the option and then the amount of the increase in the loan must be made by the lender within three months of completion.
Reviewable rate option available: The premiums are reviewed every five years.
Non smoker rates offered: Yes
Total permanent disability linked to any occupation: Total, permanent and irreversible disability as a result of sickness or accident and therefore totally incapable of being employed or engaging in any paid occupation at all, such condition having persisted for a continuous period of at least six months.
Survival period for CIC claims (days): None
A critical illness claim will not be paid when the claim arises directly or indirectly from:
• Aviation, other than as a passenger in a commercially licensed aircraft.
•Criminal acts
•Failure to follow medical advice
•Hazardous sports and pastimes
•HIV/AIDS
•Alcohol abuse
•Drug/solvent abuse
•Self inflicted injury
•War and civil commotion
•While the insured is living abroad in certain countries
