Provider: Scottish Provident Product: Self Assurance Term Personal Benefits: The plan offers t...
Provider: Scottish Provident
Product: Self Assurance Term Personal
Benefits: The plan offers the following choice of benefits:
death benefit, death or earlier critical illness benefit, critical illness benefit, disability income benefit (sickness, accident and disability), health cash benefit and premium payment benefit (sickness, accident or disability). The planholder may select as many benefits as they require ' all within the same plan.
Additional benefits: Automatic inclusion of childrens' critical illness cover when the planholder chooses death or earlier critical illness benefit or critical illness benefit. Childrens' income benefit and the immediate cash benefit are automatically included in the plan if the life assured chooses a new disability income benefit (sickness, accident or disability) as well as either death or earlier critical illness benefit or critical illness benefit with the total benefit amount of at least £25,000 in your plan.
Minimum acceptable age at commencement: 18
Maximum acceptable age: Depends on the benefit selected:
If renewable death, death or earlier critical illness, critical illness or disability income benefit is chosen, the maximum age when benefit can be taken out is:
• The maximum age at the end of the benefit term minus twice the renewable term, or
• The maximum age when benefit taken out, as shown above, if lower.
Minimum policy term: Five years
Maximum expiry age: Depends on the benefit selected:
If renewable death, death or earlier critical illness, critical illness or disability income benefit is chosen, the maximum age when benefit can be taken out is:
• The maximum age at the end of the benefit term minus twice the renewable term, or
• The maximum age when benefit taken out, as shown above, if lower.
Life cover included automatically: The plan can be arranged to include life assurance. Life cover is offered as an option. There is a choice of the following benefits:
• Death benefit ' death or earlier critical illness benefit.
• Critical illness benefit.
• Disability income benefit.
• Health cash benefit.
• Premium payment benefit (sickness, accident or disability).
Level critical illness benefit: Yes, the amount of benefit payable will be the same as the amount chosen at the start.
Decreasing critical illness benefit: Yes, this benefit will reduce over the term chosen to fit in with a loan reducing as part of the capital is paid each month. The amount payable will be the amount left at the time of claim. The interest rate chosen by the policyholder (between 0% a year and 18% a year) is used when working out how the benefit is going to reduce over the term.
Increase term after start date: Yes, there are a number of changes which can be made at any time, subject to satisfactory financial and medical evidence.
Waiver of premium available: Yes, premium payment benefit (sickness, accident or disability). This protects premiums if, because of sickness, an accident or disability, the policyholder is, in the opinion of Scottish Provident, unable to work or do a number of work or life tasks.
Mortgage interest waiver option: Yes, disability income benefit (sickness, accident or disability).
Joint life first claim basis available: Yes, when a plan is effected to cover two people, each benefit can be written on either a single-life basis or a joint-life basis.
Automatic sum assured indexation available: Optional ' benefit will increase each year by the increase in the RPI. However, it will not increase by more than 10% each year. The premium for that benefit will increase by the increase in the RPI multiplied by 1.4. Benefit will increase on the policy anniversary after cover starts. For benefits added or increased during the year, the first increase will apply less than a year from it starting and then each year after this. Scottish Provident will work out the increase in the RPI over the year ending three months before the policy anniversary. If the rate of inflation drops below zero, the rate will be zero.
Guaranteed insurability option: If the plan has been accepted at ordinary rates there are a number of increase options which allow an increase in the amount of benefits within certain limits, without the need for medical information. The increase will be set up using the same basis as the original benefit and it will end at the same time. The premium covering the increase will be based on age and rates which apply at the time.
The planholder can increase death, death or earlier critical illness, critical illness and disability income benefits by up to 50% of the original benefit amount. However, the increase cannot be for more than £150,000 for lump sum benefits and £8,000 a year for income benefits. Increase options available until age 55 (first life to reach 55 if joint-life benefit is chosen).
If the original plan includes premium payment benefit (sickness, accident or disability) this will be automatically included in the increase as long as there is no claim either in the course of being paid or waiting to be paid.
Permanent Health Insurance option: Yes, disability income benefit (sickness, accident or disability) This will give a monthly tax-free income if, because of sickness, an accident or disability, the policyholder, in the opinion of Scottish Provident, is unable to work or do a number of work tasks. Premium payment benefit (sickness, accident or disability) will be automatically included if this benefit is chosen.
Replacement/renewal option: Instead of choosing a specific term on some benefits a planholder can choose to renew cover on a five-year or 10-year basis. At the end of the five or 10 years, cover can be renewed for a further five or 10 years without the need to provide medical evidence. Premiums will be worked out after renewal based on age and rates at the time of renewal. Cover can be renewed up until the maximum age at the end of the benefit term. Health cash benefit is only available with a level five-year renewable term.
Regular income facility available: Yes, the planholder can choose to have death or critical illness benefit paid as a tax-free income. This can be on a level or increasing basis. The income received each year is chosen at outset. After a claim is accepted benefit will be paid monthly and will continue until the end of the benefit term.
Level: The amount of benefit chosen will stay at that level for the rest of the term.
Increases: Benefits will increase each year by the increase in the Retail Price Index (RPI). Benefit will continue to increase while a claim is being paid. If, when making a claim, the planholder does not want to receive an income and would prefer to receive money up-front as a lump sum, some or all of the income can be changed to achieve this. Scottish Provident will work out the lump sum based on the terms at the time, which will allow the benefit to be paid early.
In the event of death while a critical illness income benefit is being paid, the representatives will have the choice of continuing to receive the income to the end of the benefit term or they can change the income left into a lump sum.
Number of core critical conditions as defined by ABI/IFAA: 7
• Cancer
• Coronary artery bypass surgery
• Heart attack
• Kidney failure
• Major organ transplant
• Multiple sclerosis
• Stroke
Number of ABI/IFAA additional conditions covered: 13
• Aorta graft surgery
• Benign brain tumour
• Blindness
• Coma
• Coma time limit
• Deafness
• Heart valve replacement or repair
• Loss of limb
• Loss of speech
• Motor neurone disease
• Paralysis/Paraplegia
• Parkinson's disease
• Terminal illness
• Third degree burns
Number of other conditions covered: 15
• Aids through assault
• Aids blood transfusion
• Aids occupation
• Alzheimer's disease
• Angioplasty
• Aplastic Anaemia
• Bacterial Meningitis
• Children's benefit
• Creutzfeldt-Jakob disease
• Hodgkin's disease
• Liver failure
• Loss of independence
• Major medical expenses
• Open heart surgery
• Pre-Senile Dementia
Total permanent disability benefit: Scottish Provident will pay benefit if becoming totally and permanently disabled which means, in Scottish Provident's opinion, an assured is prevented from doing their own occupation or a number of work tasks (depending on the definition chosen). Disability could be as a result of an accident or an illness (no deferred period for total permanent disability). When taking out this benefit, an assured can decide which of the following definitions to use to assess a claim. If not in paid work or a house-person only the work tasks definition can be chosen.
Survival period for CIC claims: To qualify for a claim the person covered must survive for 14 days after diagnosis with a critical illness. There is no deferred period for total permanent disability.
