Provider: Standard Life Product: Lifetime Protection Series. Overview: This series of protection...
Provider: Standard Life
Product: Lifetime Protection Series.
Overview: This series of protection plans is designed to protect against a wide range of lifetime events.
The following benefit types of are available:
1. Standalone life assurance cover (on a level, decreasing, family income benefit, renewable or convertible basis).
2. Standalone critical illness (CI) cover (on a level, decreasing or income basis).
3. Life assurance cover plus accelerated CI cover (on a level, decreasing, family income benefit, renewable or convertible basis).
4. Life assurance cover plus accelerated total permanent disability (TPD) cover (on a level, decreasing, family income benefit, renewable or convertible basis).
A mortgage income protection product, mortgage outlay cover, is also available of a standalone basis. A range of options are available. This provides long-term disability cover plus short-term unemployment cover. An Inheritance Tax (IHT) protection plan is also available.
Does the provider provide access to online literature: Yes
Minimum/maximum acceptable ages at commencement:
Minimum age attained at outset: 18 attained everywhere in the UK except in Scotland where it is 16 attained.
Maximum age attained at outset: death only - 80 next birthday; CI cover - 60 next birthday; TPD only - 60 next birthday; mortgage outlay cover - 60 next birthday; and convertible term - 55 next birthday.
Policy term: The minimum policy term is five years for regular premium policies. The minimum term for CI plans is five years. Renewable plans have a five-year fixed term. IHT plans have a seven-year fixed term. The maximum term is 25 years and the maximum age at expiry is 64 attained for CI plans. For death-only plans, the maximum term is 35 years and the maximum age at expiry is 84 attained. For renewable plans, there is a fixed term of five years or to age 59 attained.
Can the plan include level/decreasing benefits? The plan can be arranged under level/decreasing benefits, including benefit paid as an income.
Is waiver of premium available? This can, for an additional cost, be included at the start or added at a later date. This covers the future payment of premiums if illness or disability prevents the planholder from working. Waiver of premium is normally available on an 'own' occupation basis. However, depending on personal circumstances, this may be changed to a 'suited' occupation definition or an activities of daily working (ADW) definition.
The policy schedule will confirm whether cover is provided on an 'own', 'suited' or 'ADW' occupation basis. This benefit can be added to the plan at any time prior to the anniversary date preceding the life assured's 56th birthday, or plan expiry if earlier. The benefit expires immediately before the earlier of the anniversary date of the plan preceding the life assured's 65th birthday, or the expiry date of the plan. Claims for waiver of premium are subject to a deferred period of 26 weeks.
Does the plan offer income protection as a rider benefit? Yes. Mortgage outlay cover can be effected, as an option, together with other mortgage-related term assurance products from the Lifetime Protection Series range. Mortgage outlay cover is a form of mortgage payment insurance, similar to income protection, which allows a customer to combine disability cover and, where required, unemployment cover.
The amount of cover focuses on the mortgage outlay rather than the customer's salary and the benefit is payable during periods of disability or unemployment. The amount of cover can be linked to the full, or a proportion of, the monthly mortgage payments. Additional cover up to a maximum of 40% of the monthly mortgage payment, is allowed for related expenses such as buildings insurance. The unemployment cover is available through Pinnacle Insurance plc.
Flexibility: The term can be increased either with or without evidence of insurability, depending on the options selected.
Extension option: This option will allow an extension to the term of the plan every five years and expires at the same date as the increase option.
Mortgage future insurability and term extension option: These options will be available as an add-on to all mortgage related contracts. The options will allow the policyholder to increase the level of cover and extend the term in line with an increase or extension in the associated mortgage, again without evidence of insurability. The plan can be arranged on a joint life first claim basis.
Joint life package: This is two single life contracts instead of one joint life. If the surviving life requires cover to continue after the first death or CI claim, they should effect two separate contracts. This will avoid having to effect a new replacement policy at the rates then applicable to the older age.
Comprehensive cover: This is one death benefit only contract and one CI protection plan, as an alternative to one single contract payable on the earlier of death or CI claim. By effecting two contracts, life cover is guaranteed to continue following a CI claim, whereas one contract payable on the earlier event would terminate on the first claim, and the life assured would find it virtually impossible to obtain replacement cover at ordinary rates
Does the plan include a guaranteed insurability option? Yes. The Lifetime Protection series allows for a number of options to be added to plans at outset which will allow cover to be varied in the future without the need for evidence of insurability. The Business Assurance Option is included as standard (subject to underwriting) on all business assurance contracts, at no extra cost.
Lifestyle option: This can be exercised on marriage or the birth or adoption of a child.
Increase option: This allows the benefit to be increased every 5th anniversary of the plan, by up to 25% without evidence of health.
Extension option: This allows for the term under the plan to be extended every five years.
Mortgage future insurability and term extension option: This is available on mortgage related contracts only. The options will allow the level of benefit to be increased and/or the term extended in line with any increase or extension to the associated mortgage.
Mortgage assurance option: Included as standard on mortgage protection plans and decreasing critical illness plans, this option allows the underlying interest rate (and premium) to be increased without evidence of insurability where increases in mortgage interest rate have resulted in a potential shortfall between the sum assured and the outstanding loan.
Business assurance option: This is included as standard on all business assurance cases and allows the sum assured to be increased, without medical evidence, in the event of a salary increase, an increase in the value of shareholding, or an increase in business loan.
Conditions: The mortgage future insurability and term extension option cannot be selected at the same time as the lifestyle option or increase option. The business assurance option cannot be selected at the same time as the lifestyle option.
Replacement/renewal option: This allows the insured to extend the term of their plan every five years. This enables them to maintain cover if their protection needs continue for longer than originally expected. It also means that if their health deteriorates in the future they can continue to be covered. The latest date that this option can be used is the earlier of the final five yearly anniversary date of the plan before their 55th birthday and three years before the plans expiry date.
The cover can be extended to the earlier of;
oOo-#149; the 35th anniversary date of the original contract
oOo-#149; their 85th birthday (65 where CI is included and 65 where TPD is included)
Guaranteed rates: Guaranteed rates are available for plans incorporating life cover and accelerated CI benefit.
Reviewable rate option available: Premiums rates for stand alone CI benefit are guaranteed for the first five years and reviewable at five yearly intervals thereafter.
Plans also available under a renewable five-year premium.
Non-smoker rates offered: Non-smoking definition means no smoking of any kind (cigarettes, cigars, pipes) within the previous 12 months.
Does the plan offer free cover during underwriting: Yes - if plan is being used in connection with a mortgage. Cover will be available for a maximum period of 6 months.
Business plans: Plans sold on a business basis, i.e. in conjunction with a business loan will qualify for Immediate Temporary Cover.
ABI core conditions covered:
oOo-#149; Cancer
oOo-#149; Coronary Artery Bypass
oOo-#149; Heart attack
oOo-#149; Kidney failure
oOo-#149; Major organ transplant
oOo-#149; Multiple sclerosis
oOo-#149; Stroke
ABI additional conditions covered:
oOo-#149; Aorta graft surgery
oOo-#149; Benign brain tumour
oOo-#149; Blindness
oOo-#149; Coma
oOo-#149; Deafness
oOo-#149; Heart valve replacement or repair
oOo-#149; Loss of limb
oOo-#149; Loss of speech
oOo-#149; Motor neurone disease
oOo-#149; Paralysis/Paraplegia
oOo-#149; Parkinson's disease
oOo-#149; Terminal illness - included with life cover. CI-only policies do not include terminal illness cover.
oOo-#149; Third degree burns.
Other conditions covered:
oOo-#149; HIV through physical assault
oOo-#149; HIV through blood transfusion
oOo-#149; HIV occupation
oOo-#149; Alzheimer's disease
oOo-#149; Aplastic Anaemia
oOo-#149; Bacterial Meningitis
oOo-#149; Creutzfeldt-Jakob disease
oOo-#149; Liver failure
oOo-#149; Pre-Senile Dementia (before age 65)
Is children's benefit included?
Yes. Children are covered under the plan.
Web Link
www.standardlife.com
