Bupa Income Protection provides a policyholder with a regular income if they are in paid work and il...
Bupa Income Protection provides a policyholder with a regular income if they are in paid work and illness or injury causes a loss of earnings. The policy can provide cover for income or mortgage payments.
It can also provide a regular income for someone not in paid work if they are unable to carry out certain activities of daily living because of illness or injury. There is a choice at outset of deferred periods (depending on occupation) of one, three, six and 12 months. Protection is provided for the duration of the cover no matter how many claims are made.
Minimum acceptable monthly premium
The minimum total premium is £8.00 a month inclusive of policy fee.
Minimum acceptable age attained at entry
The minimum age at outset is 18 attained.
Maximum age attained at entry
The maximum age at entry is 59 attained.
Maximum annual benefit available
The maximum benefit is £150,000 a year.
Minimum policy term
The minimum term is five years.
Termination age
The policy can be written to a termination age of 50, 55, 60, 65 and 70 if term to retirement cover is selected. The policy can be written to any termination age up to 70 if fixed term or mortgage outlay covers are selected.
Option for benefits to be paid for a limited period
A two year limited benefit period is available. If the member has chosen a two year benefit period option then the member is entitled to receive benefit for a maximum of 24 months. The period could either be a single continuous period or a collection of shorter periods which together add up to 24 months. All the benefits will then stop and the membership will end when benefits have been paid for 24 months. The two year limited benefit period is available on term to retirement and fixed term only.
Increase term after start date
There is an option to increase the term. This will require full underwriting and the revised premium will be based upon the client's age attained.
Decrease term after start date
There is an option to decrease the term, at Bupa's discretion.
Decrease benefit subject to underwriting
Yes.
Guaranteed insurability options (GIOs) available
A member will be eligible to exercise this option only if they are accepted at standard rates and are under 55 years of age.
The option has to be exercised within three months of the event. Each time the benefit increases, Bupa will charge an additional amount based on the premium rates at the time and the current age of the member. The new policy may not have a deferred period shorter than the original policy. This option cannot be exercised if the claim has been submitted or if the member is claiming.
This option can only be used in the following events:
n an increase in the member's share of the mortgage payment due to a home move or improvement, or the member becoming a sole owner of the mortgage following a legal separation.
n the member becoming a parent/legal guardian.
n the member receiving a salary increase.
n the member entering into a marriage/civil partnership.
The increase in benefit will be limited to the lower of 50% of the existing benefit level in the event of marriage/civil partnership, becoming a parent/legal guardian; 50% of the salary increase; or £9,000 a year. These benefits can be taken twice but are limited with reference to the initial benefit amount, meaning members will not be able to take a 50% increase twice.
Plan available without indexation
The plan is available with level benefits.
Benefit amount index linked
There is an option available to index-link the benefit. Indexation can be added up to 12 months from inception.
Index-linked benefit
Index-linked benefit is an additional option and is available with term to retirement and fixed term cover. It is not available with mortgage outlay cover.
If Bupa has provided this benefit, on each anniversary of the commencement date it will increase the benefit as shown on the client's registration certificate by the same percentage as the percentage increase in the retail prices index during the first 12 months of the 15 month period immediately before the anniversary of the commencement date. The maximum increase on any anniversary will be 10%.
Policyholders will have to pay an increased premium for any increase in the benefit. The increase in the premium will be the cost for the increase in the benefit based on their age and Bupa's premium rates at the time of the increase. If Bupa is paying benefit to a policyholder at the time of the increase, it will use the increased amount to calculate the benefit if appropriate.
Indexation throughout the term of the policy (and claim) is available if the indexation option is chosen.
Age used when costing indexation increases
The member's age attained at policy anniversary is used for the incremental part of the benefit only.
Waiver of premium available
Bupa will waive premiums for any period while the member is receiving benefit. Premiums during the deferred period will not be waived. The waiver of a premium is deferred the same as the main benefit. The maximum age at entry for premium waiver is 59 attained. Waiver terminates at age 70 attained.
Guaranteed premium rates available
Guaranteed premiums are fixed for the duration of the policy term and can change only if the indexation option has been chosen.
Reviewable premium rates
Reviewable premiums are available with term to retirement cover option.
Career Break available
Yes
Houseperson cover available
If the member is not in paid occupation when they become incapacitated, the amount of benefit Bupa will pay each month will be the lower of the amount shown on the registration certificate as the agreed benefit, or housepersons' benefit (less benefit reduction). The maximum benefit payable while the policyholder is not in a paid occupation is £15,600 a year. If not in paid work when becoming incapacitated, the deferred period will be three months regardless of the deferred period chosen at outset.
Carers Benefit
The policy will pay a lump sum equal to four times the life assured's monthly IP benefit if a child (including an adopted child) of the life assured suffers one of the following defined illnesses, providing that the child survives for 14 days following diagnosis.
Relapse benefit available
After a claim has ended, if the member subsequently suffers from the same cause within 12 months, the deferred period will not be re-applied.
Disability counsellors used
Bupa Healthline is available to all members.
Maximum % of income insurable
If the member is in paid occupation or self-employed when they become incapacitated, the amount of benefit Bupa will pay each month will be the lower of the amount shown on the registration certificate as the agreed benefit or the maximum insurable benefit as calculated below.
n 70% of the first £10,000 a year of gross pre-incapacity earnings, plus
n 50% of the next £50,000 a year of gross pre-incapacity earnings, plus
n 40% of gross pre-incapacity earnings over of £60,000.
Continuing income is deducted from the benefit amount, while the State Long Term Incapacity Benefit is only deducted if the member is in receipt of it.
The benefit is payable from the end of the deferred period monthly in arrears until the first to occur of: termination of incapacity, termination age, end of term, or death.
Standard definition of disability
If the illness or injury to which a claim relates occurred while a member was in paid occupation and if the suited definition does not apply, Bupa will treat a member as being incapacitated if, and for as long as, they are unable, because of illness or injury, to perform the material and substantial duties of their own occupation and they are not carrying out any other occupation, resulting in a loss of earnings.
Deferred Period
The deferred periods available are one month, three months, six months and 12 months. Limitations are imposed for certain occupations.
Two deferred periods in one plan
Two separate deferred periods can be chosen.
Number of exclusions applying to the plan
There is one exclusion, namely, riot, strike, civil commotion, insurrection, war (whether declared or not), invasion or any activity in any way connected with such activities.
