Protection from Bright Grey
Provider: Bright Grey
Product: Protection from Bright Grey
Maximum acceptable age at commencement: The maximum age attained at outset varies depending on the risk, as outlined below:
Benefit Maximum age attained
Life cover 65
Critical illness cover 65
Life or critical illness 65
These limits apply to the oldest life.
Cover ceases at age 75 for life cover, critical illness, life or critical illness and 83 for payment cover for sickness.
Maximum term: Maximum term for any critical illness cover (includes life or critical illness cover) limited to 25 years. The maximum is 40 years for life cover, income cover for sickness and income cover for employment.
Maximum sum assured: Where a plan includes critical illness the maximum sum assured is £350,000.
Plan can include level life assurance benefit: Life cover can be on a level, increasing or decreasing basis.
Plan can include decreasing life assurance benefit: There are two options by which the sum assured can decrease:
1. By a selected rate in line with the mortgage 0-15%
2. By opting for the mortgage guarantee option
The mortgage guarantee will apply provided that: The cover was taken out in connection with a capital and interest loan or mortgage; the term of the loan or mortgage is the same as the term of the cover at the date the cover started; the amount of the loan or mortgage was the same as the amount of the cover shown on the cover summary on the date the cover started; and any changes to the size or term of the mortgage have been matched by changes to the product.
Plan can provide life assurance benefit paid as income: Benefit can be paid as either a lump sum or income. The person covered can change between lump sum and income or vice versa if they wish.
Waiver of premium available: Two types of cover are available. Payment cover for sickness - if the life or lives assured are unable to work because of an illness or injury, Bright Grey will pay the plan payments for them. Plan payments will commence once they have been sick for longer than the deferred period either four, 13, 26 or 52 weeks. If selected, payment cover for sickness will apply to all covers and is automatically included if they choose income cover for sickness.
A choice of three definitions of disability can apply:
• Own occupation
• Working tasks definition
• Living tasks definition
Does the plan offer income protection as a rider benefit?
Income cover for sickness: Available as an option at any time. This is an income protection insurance rider providing cover up to a maximum of 55% of pre-tax earnings (overall max £6,250 pm).
Income cover - care cover option: At the date the insured's income cover for sickness finishes, they will have the option to convert this into care cover. Bright Grey will tell the planholder the amount of cover that will apply following the conversion and send a new cover summary when they are told that converting the cover is required. Following conversion the payment for care cover will be payable until the person covered is 80 and will be reviewable each year. After the person covered reaches 80, the insured won't need to make any further payments to us.
The care cover will include the same additional features, increase in payments or exclusions as the original cover except the deferred period will be 13 weeks. Bright Grey will pay this cover if the person covered becomes incapacitated for longer than the deferred period at any time.
Cover can be arranged up to 55% of their salary to a maximum of £2,000 per month. State benefits are not taken into account, however any similar income or pensions payments being received will be deducted.
Does the plan offer the option to buy back life cover after a claim: Life cover reinstatement option - this only applies to life or critical illness cover policies. 12 months after a claim is paid as a result of a critical illness or total permanent disability, the planholder may take out a new life cover policy only on the life of the person covered who the claim was made for. If no cover remains under the original plan a new plan may be taken out.
The new cover will be on the terms and conditions at that time; have a term no longer than the remaining term of the original cover; include the same additional features, increase in payments or exclusions as the original cover; and have an amount of cover no more than the amount on the original cover subject to a maximum of £500,000.
The payment for the new cover will be based on the terms for the relevant person covered which applied at the date the original cover started or at any subsequent restart. The age of the person covered at the date the new cover starts; and the payment rates Bright Grey charge at the date the new cover starts.
Automatic sum assured indexation available:
Increasing cover - this only applies to any cover that is payable as an increasing lump sum or increasing regular payments. On each anniversary of the date the plan started, the amount of cover will increase by either:
• The Retail Price Index (RPI), this means the percentage increase in the United Kingdom Government's RPI (or such other index as Bright Grey shall determine) over the 12 month period ending three months before the anniversary of the date the plan started, subject to a minimum of 2% and a maximum of 10%.
• A selected rate of between 2% and 10%.
If the date cover started is not the same day in the year as the date the plan started, the first increase will take place on the first anniversary of the date the plan started after this cover has been in force for 12 months.
Clients will be notified at least one month before the increase takes place to advise how much the increase will be. If they do not want the amount of cover to increase, they must advise Bright Grey at least five days before the increase is due to take place. If five consecutive increases are cancelled no further increases will be offered.
Guaranteed insurability option: Cover increase options apply to life cover, life or critical illness cover, critical illness cover or income cover for sickness provided the plan was accepted on standard terms.
The person covered must be under 55 at the time of the increase. If there is more than one person covered, both of them must be under 55.
They must exercise these options within three months of the event happening. Bright Grey does not need any further medical evidence, but it will need to see evidence of the event.
It does not apply to any cover or plan which was taken out under a cover increase option. The cover cannot be increased using this option if they are currently paying a claim or considering a claim.
The cover can be increased following any of these events:
• Marriage
• Increasing mortgage
• An increase in salary
• The birth or adoption of a child
Cover can be increased on more than one occasion but the overall increase is limited to whichever of the following amounts is lower - half the original amount of cover; or £125,000 for all covers payable as a lump sum; or £8,000 a year for all covers payable as regular payments.
These limits apply across all covers included within the plan.
Guaranteed rates available: Rates are always guaranteed throughout term for life cover and income cover for sickness. Critical illness cover, life or critical illness cover and income cover for unemployment are available but only on a reviewable basis.
Reviewable rate option available: Reviewable payments available for critical illness, life or critical illness and income cover for unemployment. Bright Grey guarantee that payments for critical illness, life or critical illness will not change for at least five years from the date cover started. At the end of this period they will review the payment for this cover each year.
Free cover during underwriting: Instant cover is available on the following covers.
• Life cover
• Critical illness cover
• Life or critical illness cover
• Income cover for sickness
This means that the people covered will be covered from the time Bright Grey receive their application and a method of making payments until:
• For mortgage-related cases the first of the loan being completed, three months after acceptance or commencement of the plan.
• For non-mortgage-related cases, cover will continue for as long as necessary provided the proposer agrees for it to commence on acceptance. If this is longer than three months, instant cover may be withdrawn.
Instant cover is only available if resident in the UK - limited to £500,000 (lump sum) or £15,000 (income) - and will cease if the case is deferred, declined or accepted on non-standard terms or medical information is not received within 30 days of a request being issued.
Number of core critical conditions as defined by ABI/IFAA: There are seven core conditions covered - cancer, coronary artery bypass surgery, heart attack, kidney failure, major organ transplant, multiple sclerosis and stroke.
Number of ABI/IFAA additional conditions covered: There are 13 ABI additionals covered - aorta graft surgery, 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 and third-degree burns.
Number of other conditions covered: There are 12 other conditions covered - AIDS blood transfusion, AIDS occupation, Alzheimer's disease, aplastic anaemia, bacterial meningitis, cardiomyopathy, Creutzfeldt-Jakob disease, liver failure, loss of independence, open heart surgery and pre-senile dementia.
Children's benefit: For any main critical illness cover in force at the time, children's critical illness cover becomes payable, Bright Grey will pay whichever of the following amounts is lower:
• If the main cover is payable as a lump sum, 50% of the amount of cover shown on the cover summary
• If the main cover is payable as regular payments, 50% of the amount of cover shown on the cover summary, multiplied by the term of the cover.
• £25,000.
