Provider: Lincoln Product: Financial Foundations Overview: The plan acts as a wrapper allowing c...
Provider: Lincoln
Product: Financial Foundations
Overview: The plan acts as a wrapper allowing clients to combine a number of protection needs within one bundle.
Benefits include:
• Life cover
• Critical illness cover
• Permanent disability cover
• Elderly care cover
• Income protection cover (including houseperson's benefits)
• Waiver of premium
Qualifying status of plan: Non-qualifying
Minimum acceptable age at commencement: Minimum age attained is 17, 18 next birthday.
Maximum acceptable age at commencement: Maximum age attained is 64, 65 next birthday.
Maximum policy term and/or expiry age: No maximum term is specified.
Minimum sum assured: £5,000
Maximum sum assured: £1,000,000 for life cover and £500,000 for critical illness cover
Minimum acceptable monthly premium: £20
Minimum acceptable single premium: £250
Monthly policy fee: There is a policy fee of £2.50
Policy fee indexed automatically: The monthly administration charge will, in normal circumstances, increase each year in line with inflation.
One-off setting up fee charged: There is an initial charge which is spread evenly over the first two years. The amount will depend on the age of the life assured and the level of premium.
Initial charge (bid/offer spread): There is a 5% bid to offer spread plus rounding of up to 1%.
Annual management charge: The annual management charge for the Lincoln Balanced Managed Fund is 0.55%.
Allocation range for regular premiums: Allocation rate is 100%
Allocation range for single premiums: Allocation rate is 97%
Number of unit-linked fund links available: There are 12 unitised funds available.
Ethical/environmental fund links available: Jupiter Asset Management Green fund is available, investing in UK and international equities with socially responsible policies.
Max number of fund links: Clients can select up to four funds at any one time.
Number of free switches allowed per year: Clients are entitled to unlimited fund switches.
Increase premium amount during policy term: Increases in payments are allowed at any time.
Decrease premium amount during policy term: Payments can be reduced (after two years payments have been made) down to the minimum amount then acceptable by Lincoln.
Increase sum assured subject to underwriting: The policyholder can apply to increase the amount of their insurance protection and add new benefits to the policy. This will normally result in a premium increase.
Decrease sum assured subject to underwriting: The benefit can be reduced or removed completely.
Change lives assured after start date: There is an option to change the life assured.
Waiver of premium available: Optional benefit, although automatically included if income protection benefit is chosen.
Waiver with 26 weeks/six month deferred period: A 26 week deferred period on the waiver of premium is available.
Maximum age at entry to include waiver benefit: Maximum age at entry is 55 next birthday.
Age waiver cover ceases: Benefit expires at policy anniversary prior to age 60.
Waiver definition of disability: Life insured must be unable to follow own occupation or any other for which they are reasonably suited.
Waiver benefit amount indexed: If the policy benefits and premiums are indexed then the waiver of premium will be indexed.
Cost of including waiver benefit: 3% of total premium for single plans, 6% for joint plans
Waiver benefit covers both lives: Joint waiver cover is available.
Joint life first claim basis available: Joint life available with independent benefits on each life.
Joint life second claim basis available: Joint life with benefits payable on second death is available with a life only policy.
Joint life with benefit payable on both first and second claim: Joint life with independent benefits on each life available with stand alone critical Illness only.
Plan includes full life cover as an option: This policy provides full life cover, although it is also possible to have it with income protection or critical illness.
Plan available without life cover if required: The plan is available without life cover.
Critical illness cover as a % of the life cover: Life cover is available as an option within the menu. Life cover is independent of critical illness benefit.
Automatic sum assured indexation available: Benefits can be linked to the Retail Price Index.
Guaranteed insurability option: Benefit increase option is automatically included.
On marriage cover can be increased by the lower of £60,000 and 50% of the initial sum assured.
On the birth of a child or adoption, the benefit can be increased by the lower of £30,000 and 25% of the initial sum assured.
On moving house/increase in mortgage, the sum assured can be increased by the lower of £60,000 and 100% of the initial sum assured.
Number of years before the first premium review: For clients under the age of 65 at entry, policies will be initially reviewed 10 years after policy inception then every five years.
For clients under the age of 70 at entry, policies will be initially reviewed 10 years after policy inception then every five years. Over the age of 76 premium reviews will be conducted annually.
ABI core critical illness conditions listed:
• Cancer
• Coronary artery bypass surgery
• Heart attack
• Kidney failure
• Major organ transplant
• Multiple sclerosis
• Stroke
Additional critical conditions as defined by ABI:
• Benign brain tumour
• Blindness
• Coma
• Deafness
• Heart valve replacement or repair
• Loss of limb
• Loss of speech
• Motor neurone disease
• Paralysis/paraplegia
• Parkinson's disease
• Terminal illness – available on a life cover contract but not for standalone critical illness.
• Third degree burns
Other conditions:
• AIDS occupation
• Alzheimer's disease
• Angioplasty
For a claim in respect of angioplasty the amount payable is the lesser of:
• 5% of the amount of critical illness stated in the schedule
• £25,000
Only one angioplasty claim can be made and there will be a resulting reduction in cover for other conditions following an angioplasty claim.
• Children's benefit
• Loss of independence
Survival period for critical illness claims (days):
Where standalone critical illness cover is selected benefits will not be paid until 28 days after illness has been diagnosed.
