Provider: Legal & General Product: Term Assurance and Mortgage Term Assurance with Critical Illn...
Provider: Legal & General
Product: Term Assurance and Mortgage Term Assurance with Critical Illness Cover. The plan is a level term assurance plan with the option to add critical illness cover. SmoothMove is is an additional benefit of Mortgage Term Assurance designed to give extra reassurance on the day the assured moves home. SmoothMove service provides free 'rescue insurance' to help cope with unexpected problems and hitches such as the removal van failing to arrive or a burst pipe. A 24-hour helpline is available.
Minimum age at commencement: 17
Maximum age at commencement 62
Minimum policy term: A term of two years if critical illness (CI) cover is included, up to a maximum of 25 years but the plan must end before the assured's 65th birthday (older life for joint life plans) and no earlier than their 29th birthday (younger life for joint life plans).
Maximum expiry age: 25 years or to age 65
(40 years or to age 80 without critical illness).
Maximum term (years): 25
Minimum sum assured: None
Maximum sum assured: None
Minimum acceptable monthly premium: The minimum starting premium is currently £10 per month or £100 per annum.
Minimum acceptable annual premium: £100
Premiums paid by direct debit: Monthly or yearly.
Premiums paid by cheque: Yearly
Monthly policy fee: Policy charge is implicit within the premiums. A discount is applied for multiple benefit sales.
Life cover included automatically: The guaranteed sum assured would be payable on first death, if a critical illness claim has not already been made.
Life cover offered as an option: No
Plan available without full death cover: No
Amount paid on death: Sum assured.
Level critical illness benefit: Yes
Decreasing critical illness benefit: No
Increase term after start date: Yes, Protection Choices allows the planholder flexibility at any time, subject to standard underwriting where relevant.
Decrease term after start date: Yes, Protection Choices allows the planholder the following flexibility at any time, subject to standard underwriting where relevant.
Increase sum assured subject to underwriting: Yes, Protection Choices allows the planholder the following flexibility at any time, subject to standard underwriting where relevant.
Decrease sum assured subject to underwriting:
Yes
Change lives assured after start date: Yes
Waiver of premium (WOP) available: Available on level term, mortgage term, pension term and mortgage decreasing term where the assured is under the age of 55 at outset and accepted on standard terms. They will be eligible to apply for wop to protect their premiums if they are totally incapacitated from following their normal occupation by reason of illness or accident necessitating medical or surgical treatment. As long as premiums have been paid up to date, then, after six months' incapacity and provided they are not following any other occupation, Legal & General will pay the premiums until they return to work, their 60th birthday, or their death whichever is the earliest. In the case of a joint life plan, either (or both) of the lives assured will be eligible to apply for wop. Waiver will cease to apply when they reach 60th birthday.
Waiver with 13 week/three month deferred period: No
Waiver with 26 weeks/six month deferred period: The deferred period is six months. The deferred period will not begin until Legal & General has been notified by the policyholder that they wish to make a waiver claim.
Minimum age at entry to include waiver benefit: 17
Maximum age at entry to include waiver benefit:
Cost of including waiver benefit %: Varies
Waiver definition of disability: Totally incapacitated from following their normal occupation by reason of illness or accident necessitating medical or surgical treatment.
Mortgage interest waiver option: There are two options of cover:
1. Mortgage Payment Insurance
If the life assured is unable to work due to illness or accident, the benefit will be paid after the chosen deferred period. Cover is available on a single or joint life basis.
The benefit will be adjusted in line with the Woolwich PLC standard variable rate (this will be done by establishing a stabilised rate,which will change if it differs by 1% or more from the Woolwich rate).
2. Mortgage Payment Protection Insurance
The cover is available if the planholder is taking out a new mortgage, a further advance on an existing mortgage or re-mortgaging. L&G will pay a monthly benefit, after the chosen deferred period, if the planholder is unable to work because of sickness or accident or if made unemployed through no fault of their own. L&G will pay the benefit for up to 12 months or when the planholder returns to work whichever happens first.
The planholder can choose a deferred period of 30, 60 or 180 days for accident and sickness cover and 30 or 60 days for unemployment cover. Premiums must continue to be paid while L&G is paying the benefit for this cover, and cover may be continued after the planholder has returned to work in case they claim again in the future. The chosen benefit must not be more than 125% of the mortgage repayment or 65% of their gross monthly earnings (whichever is less).
Joint life first claim basis available: Single life, joint life first claim, joint life same sex and Keyperson and Partnership plans are also available.
Joint life second claim basis available: No
Joint life with 2x cover basis available: Yes
Plan can be used for keyperson protection: Yes
Plan can be used for partnership/shareholder protection: Yes
Split trust wording available: Yes
Automatic sum assured indexation available: Yes
Regular income facility available: No
Guaranteed rates available: The premiums are guaranteed to remain level throughout the term of the plan, unless there is a change in occupation or an increase in the level of cover using the guaranteed insurability option.
Number of years before the first premium review: Guaranteed ' no reviews.
Non-smoker rates offered: A smoker is defined as someone who has taken nicotine products within the last 12 months.
Own doctor medical available: Subject to underwriting.
Insurer pays for cost of claims evidence: No
Notify change in occupation/pastimes after start date: Yes, but only in the first year.
Number of core critical conditions as defined by ABI/IFAA: Seven
Number of ABI/IFAA additional conditions covered: 13
Maximum age for own definition TPD: 65
Total permanent disability linked to any occupation: If the life assured is engaged in a gainful occupation immediately before the onset of disability and is, by reason of sickness or accident, totally unable to perform any occupation, and also in the opinion of the chief medical officer of Legal & General is likely to remain so permanently. Such a decision will be based on all medical evidence available.
Total permanent disability linked to activities of daily living: If the life assured is not in any gainful occupation immediately before the onset of disability, and suffers through illness or accident, a mental or physical irreversible disability, which in the opinion of the chief medical officer of Legal & General results in the life assured being permanently unable to perform, without the direct assistance of a third part, four or more of the following functions: mobility, continence, dressing or undressing, washing and bathing, toileting or eating.
Hazardous sports and pastimes excluded: No
HIV/AIDS excluded: Excluded from ci, wop or ptd if the claim is caused directly or indirectly from infection with Human Immunodeficiency Virus (HIV) or conditions due to any Acquired Immune Deficiency Syndrome (AIDS). This exclusion will not apply to any claims under the third degree burns or loss of limbs definition.
