The Axa Protection Account aims to bring together different protection covers in one place. Cover ma...
The Axa Protection Account aims to bring together different protection covers in one place. Cover may provide:
n A lump sum on death or upon suffering a terminal or critical illness during the length of cover;
n A regular monthly amount to protect income or mortgage outgoings if the insured becomes unable to work due to accident or sickness or becomes involuntarily unemployed;
n Cover for home and/or contents; and
n Protection for payments for selected covers.
The Axa Protection Account allows covers to be added, removed or adjusted as needs change, depending on the covers provided by Axa at the time. Premiums can be guaranteed, reviewable or renewable (life cover only), dependent upon the cover(s) selected.
The Axa Protection Account is a menu product providing:
n Life cover
n Critical illness (CI) cover
n Life or earlier CI cover
n Income protection (IP) cover
n Mortgage IP cover
n Accident and sickness cover
n Unemployment cover
n Household cover - buildings/contents
Minimum acceptable age attained at commencement:
The minimum age at entry is 18 attained.
Maximum age attained at commencement for CI cover:
The maximum age at entry is 64 attained.
Minimum policy term:
The minimum term for stand-alone CI cover or life or earlier CI cover is five years. The minimum is the same for all life cover, with the exception of stand-alone life cover, which is for one year.
Maximum expiry age: Cover must expire before age 70.
Maximum term (years) for CI cover:
The maximum term for stand-alone CI cover and for life or earlier CI cover is 40 years.
Maximum sum assured where CI cover is included:
Depends on payment basis for life or earlier CI cover. For reviewable and guaranteed payments, the maximum sum is £1m.
Guaranteed premium rates for stand-alone CI cover:
Payments may be either guaranteed or reviewable. This applies to life or earlier CI cover and stand-alone CI cover.
Reviewable premium rates:
Payments for CI cover and/or life or earlier CI cover can be guaranteed, or reviewable.
Number of years before the first premium review:
The first premium review is after five years. If the life assured
chooses reviewable payments, Axa will calculate it on the basis of assumptions that cover the whole length of the cover but which it will review after five years and then every year thereafter. At a review, payments may increase or reduce.
The stand-alone CI cover can be level, increasing or decreasing.
Maximum mortgage interest rate:
The maximum rate of interest is 12% per annum.
Plans that guarantee to repay the oustanding mortgage:
The mortgage is not guaranteed to be repaid.
Automatic sum assured indexation available:
The sum assured can increase in line with increases in retail price index (RPI) at each policy anniversary, subject to a maximum of 10% per annum.
Basis on which indexation increases are costed:
Payments will increase at 1.4 times the rate of increase in cover. For example, if RPI increases by 2.5%, payments will increase by 3.5%.
Single life plan available: Yes
Joint life first-claim plan available:
A joint life contract is available that pays out on the first claim. Life cover does not apply on a stand-alone CI contract.
Joint life with 2x cover basis available:
The individual covers available within the plan are offered on a joint life first event basis. By effecting two single life plans within the account, cover can be payable on both lives.
Monthly policy fee: Account fee of £2 a month or £24 a year.
Waiver of premium available:
Payment protection cover can be added or removed at any time. If added post commencement, it will be subject to underwriting. The deferred period options are four, eight, 13, 26, 52 and 104 weeks.
Age waiver cover ceases: The maximum age at expiry is before the 70th birthday of the life/lives assured.
Default waiver definition of disability:
The default definition for waiver of premium is an 'own occupation' definition. The occupation class of the person covered will determine which definition of incapacity will be applied.
Option to vary term after start date other than by insurability:
Covers may be adjusted at any time. Underwriting will apply to any increase outside of a guaranteed option.
Change lives assured after start date:
A life assured can be added or removed at any time.
Guaranteed insurability option (GIO):
There are several event-based GIOs. A GIO applies on marriage; on childbirth/legal adoption of a child; on moving home or making home improvements; and on making a career change or a promotion, where earnings increase by at least 10% as a result of this event.
Maximum age to exercise GIO: The maximum age for option is 55 attained.
Joint life separation:
Two new policies can be set up on a single life basis where a separation occurs - effectively a continuation of the existing cover.
New covers must begin within three months of the divorce (decree absolute). Under the divorce option, the new cover cannot be for greater than half the original amount of cover available on a joint life basis, if the original amount of cover exceeded £1m.
Original reason for cover must have been to cover a mortgage to which both persons covered are a party. New covers must begin within three months of new mortgage on new home or on a rearranged mortgage on existing home.
Benefit enhanced on accident or accidental death:
Cover is enhanced if a client is hospitalised for at least 28 consecutive days due to severe physical injury.
Accident hospitalisation cover - available with CI cover and life or earlier CI cover:
It pays a lump sum of the lower of 20% of the amount of cover and £50,000 following hospitalisation for at least 28 consecutive days due to severe physical injury.
Notification of a change in occupation required: No.
Review underwriting terms:
Axa will reconsider ratings and smoker status. Any alterations to the terms originally offered will lead to a new policy being issued, however, this will be available on a case-by-case basis.
Number of years to qualify as a non-smoker:
The person covered must not have used tobacco products in the past 12 months. Tobacco includes cigarettes, cigars, pipes and nicotine replacements.
Plan includes a counselling service:
Provided by Axa Assist, the person covered (both lives insured on joint life cases) will be able to access helplines for medical information, counselling and legal tax and a care support service.
Basis for inclusion of total permanent disability:
TPD is an extra cost option with CI cover or life or earlier CI cover.
Number of exclusions applicable to CI cover:
There are three exclusions for CI cover:
n Unreasonable failure to follow medical advice
n Intentional self-inflicted injury
n HIV/Aids (unless covered's infection results from assault, blood transfusion or duties of an eligible occupation)
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