The Protection Menu offers: n Level life cover n Level life cover with accelerated critical illnes...
The Protection Menu offers:
n Level life cover
n Level life cover with accelerated critical illness (CI) cover
n Decreasing life cover
n Decreasing life cover with accelerated CI cover
n Family income cover
n Family income cover with accelerated CI cover
n Income protection (IP) cover with or without additional CI cover
The plan also aims to top-up income if:
n A child is diagnosed with a listed CI
n The life assured is unable to work or maintain a houseperson's role due to disability
n The life assured becomes unemployed
n The life assured takes time of work to care for a sick child, resulting in lost earnings
The plan permits changes in the level and type of cover at any time by adding, removing or amending benefits.
Minimum acceptable age attained at commencement for insured
16 (18 for unemployment cover)
Maximum age at commencement of insured for accelerated CI cover
59
Maximum expiry age for accelerated CI cover
65
Maximum term for accelerated CI cover
40 years
Maximum sum assured where accelerated CI cover is included
£500,000
CI cover as a percentage of life cover
The CI cover acts as an accelerator of the life cover.
Guaranteed premium rates
Yes
Reviewable premium rates
Not available.
Automatic sum assured indexation available
Inflation protection (escalation):
n To be selected at outset of main cover
n If chosen, the benefit of the main cover will increase in line with the declared value of the retail prices index (RPI) up to the maximum allowed under the plan
n If the declared value of the RPI decreases, the benefit and premium will not
n Premiums will automatically increase on each plan anniversary, depending on a number of factors, including the increase in cover; the age of the person; the remaining term; the rate charged at the date the cover started; and where premium rates are banded, the amount of the original benefit. In addition, the benefit increase will never exceed 10%, and this option is not available with decreasing life cover. Furthermore, an increase may be declined no more than three times during the term of the cover.
Monthly policy fee
One plan fee of £2.50 a month or £25 a year, regardless of how many covers are included.
Waiver of premium available
Yes
Inclusion of IP benefit
IP cover inclusion is not dependent on other benefits being included. This can be set up on a guaranteed or reviewable premium rate basis.
Option to include accident sickness and unemployment cover
Unemployment cover is available as an option for an extra cost with any main cover.
Buy-back life cover after a claim
Yes
Maximum age at which buy-back option can be exercised
59
Maximum sum assured allowed under life buy-back option
£500,000
Option to vary term after start date other than by guaranteed insurability option (GIO)
The term of the plan can be increased or decreased subject to a maximum overall of 40 years and underwriting. An increase in term will be a recalculation of the whole benefit premium based on the then current age, outstanding term and premium rates.
Plan permits variations to sum assured other than by GIOs
The sum assured may be increased subject to underwriting.
n Level cover - the premium will only be calculated for the increase in sum assured.
n Decreasing cover - Any increase will result in a recalculation of the entire benefit premium based on the then current age, outstanding term and premium rates.
The sum assured can be decreased at any time.
GIOs
n If the life assured is under 55, has been accepted on standard rates and was in good health when the cover was originally underwritten, the following GIOs will be included:
1. Career change or increase in salary - maximum increase allowable is five times increase in basic salary, or 50% of existing benefit to a maximum of £100,000.
2. Marriage event/civil partnership - maximum increase allowable is 50% of existing benefit to a maximum of £100,000.
3. Childbirth/adoption event - maximum increase allowable is 50% of existing benefit to a maximum of £100,000.
4. Mortgage event (purchase of a new property or increase in mortgage loan due to home improvements) - the maximum increase allowable on life cover is the lesser of the increase in the mortgage loan amount, 50% of the existing benefit or £100,000.
The above can all be exercised providing that the option is exercised prior to the 55th birthday of the life assured (or the eldest life assured if there is more than one).
Joint-life separation option
Yes
Number of CI conditions as defined by the Association of British Insurers (ABI)
There are 23 defined conditions:
n Alzheimer's disease - resulting in permanent symptoms
n Aorta graft surgery - for disease
n Benign brain tumour - resulting in permanent symptoms
n Blindness - permanent and irreversible
n Cancer - excluding less advanced cases
n Coma - resulting in permanent symptoms
n Coronary artery bypass grafts - with surgery to divide the breastbone
n Deafness - permanent and irreversible
n Heart attack - of specified severity
n Heart valve replacement or repair - with surgery to divide the breastbone
n HIV infection - caught in the UK and other specified countries from a blood transfusion, a physical assault or at work in an eligible occupation
n Kidney failure - requiring dialysis
n Loss of speech - permanent and irreversible
n Loss of hands or feet - permanent physical severance
n Major organ transplant
n Motor neurone disease - resulting in permanent symptoms
n Multiple sclerosis with persisting symptoms
n Paralysis of limbs - total and irreversible
n Parkinson's disease - resulting in permanent symptoms
n Stroke - resulting in permanent symptoms
n Terminal illness
n Third-degree burns covering 20% of the body's surface area
n Traumatic head injury - resulting in permanent symptoms
Other conditions covered
n Aplastic anaemia
n Bacterial meningitis (childrens CI only)
n Creutzfeldt-Jakob disease
n Emphysema
n Liver failure
n Loss of independent existence (childrens CI only)
n Mastectomy
n Pre-senile dementia
n Severe lung disease
Number of conditions for childrens CI cover as defined by the ABI
There are 18 conditions covered.
Childrens CI benefit
A lump sum benefit for the lesser of £25,000 or 50% of the current CI benefit will become payable if a natural or legally adopted child (between the ages of 30 days and 18 years) suffers from one of the following conditions throughout the term of the cover:
n The child must survive for 14 days after diagnosis for the benefit to become payable
n There is a limit of £25,000 per child within a single plan (for a maximum of two children)
Number of exclusions applicable to CI cover
There is one CI cover exclusion for the main benefit - unreasonable failure to follow medical advice.
