Minimum acceptable age at entry: Income protection is usually available to anyone aged between 19 next birthday and 55 next birthday who is in full-time employment, either self-employed or as an employee.
Provider: Friends Provident
Product: Select Protection ' income protection and houseperson's cover.
Houseperson's cover is available to those not in employment or who work, on average, less than 16 hours per week.
Maximum age at entry: 55
Minimum policy term: Five years.
Retirement ages available: All ages 50 to 65 inclusive.
Maximum annual benefit available: £124,800 ' the maximum benefit is currently £2,400 per week for all income protection policies including those with other insurers. For class four occupations, £600 per week of the above may be on a deferred four week basis.
In addition pension contribution protection benefit is available up to the life assured's contribution limit.
Friends Provident will consider cases over these limits on an individual basis.
Minimum acceptable monthly premium: £10 pm, (including a £3 policy charge). Where two policies with different deferred periods are required the minimum is £5 pm per policy (including a £2 pm policy charge per policy).
Premiums paid by direct debit: Yes ' premiums may also be paid annually.
Monthly policy fee: £3 pm/£30 pa (£2 pm, £2 pa for split policies).
Increase/decrease premium amount during policy term: Yes ' in accordance with automatic sum assured increases if increasing cover is selected.
Increase/decrease term after start date: On request, subject to underwriting.
Increase benefit subject to underwriting: Increasable Insurance Option ' available at outset at an additional cost of 20% of the basic premium (before addition of plan charges) to those acceptable at unqualified ordinary rates on level cover contracts.
Decrease benefit subject to underwriting: On request.
Waiver of premium available: Yes ' any premium falling while income protection benefit, proportionate benefit, houseperson's benefit or rehabilitation benefit is being paid will be waived.
Friends Provident must be notified within four weeks (two weeks for four-week deferred) of the date of illness. If not informed within four weeks, the deferred period will not begin until notification is received from the policyholder, unless disability prevents notification.
Waiver benefit amount indexed: Yes ' if policy includes indexation option.
Benefit amount indexed by a fixed percentage: Increasing Cover. In this option, the level of income insured rises each year. It automatically increases by 5% pa compound to help offset rising prices; regardless of any changes in the life assured's state of health. Premium payments will also rise at the same rate.
Benefit amount and payments indexed: Yes ' Increasing Cover plan ' in this option, the level of income rises every year. It automatically increases by 5% pa to help offset rising prices; regardless of any changes in the insured's state of health. Premium payments will also rise at the same rate.
Benefit amount and payments remain level at all times: Level income ' benefit and premiums remain level throughout. Provided the life assured remains in good health, they can increase the level of income benefit by taking out more policies, subject to underwriting.
Guaranteed premium rates: Yes ' premium rates are guaranteed throughout the term of the income protection cover irrespective of any change of occupation or pursuits or of Friends Provident claims experience.
Conversion option: Income protection cover contains an option to replace it with an Executive Income Protection plan without further underwriting, subject to the sum insured being no greater than that current and appropriate to the level of salary and subject to the deferred period being no shorter and the expiry date no later. The Executive Plan written under this option will not be part of the Select Protection Plan.
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Career break available: The option is available if the life assured ceases full-time employment, to take out a temporary substitute policy containing houseperson's and hospitalisation benefits without further evidence of insurability. The benefit will be reduced from the amount insured at outset to the maximum benefit allowed for housepersons (currently £300pw). The premium will be amended to reflect such changes and will be based upon the then current age of the insured. The original policy is suspended during the career break.
This alternative policy may be kept in force up to the selected ceasing age or the life assured may within five years restore, without further evidence of insurability, and on its original terms and conditions including any indexation due, the policy(s) suspended as a result of effecting the option.
Replacement option available: Yes
Houseperson cover available: Housepersons cover is available to those not working or who work less than an average of 16 hours per week on a regular basis. It provides a regular income to cover the cost of child care, invalid care, or household help, if the life assured is normally and routinely unable, due to illness or accidental injury.
Unemployment cover available: Yes, choice of 12 or 24-month maximum benefit payment period with immediate cover on new mortgages and 90 days on existing mortgages.
Hospitalisation benefit available: Hospitalisation benefit is included at no extra cost. The income protection benefit or houseperson's benefit is available after the seventh day if the life assured has been confined to hospital following an illness or accidental injury. This valuable cover is included free and continues for up until the thirteenth week while the life assured remains in hospital.
The hospitalisation benefit will be payable commencing after the seventh day in hospital and provides cover right up until the ninety-first complete day of confinement to hospital (or to the end of the deferred period if this is earlier). The benefit is payable at a rate of one-seventh of the life assured's weekly benefit for each day of hospital confinement.
The income protection benefit will become payable at the end of the deferred period in the normal way. The benefit is subject to a limit of £150 per day including the hospitalisation benefit under existing policies.
Permanent total disability benefit available: Yes ' with all types of critical illness cover within the Select Protection menu.
Disability counsellors used: Yes ' Friends Provident use the services of disability counsellors who visit claimants in their own homes and give advice on all aspects of illness and incapacity.
Cover operates worldwide: Yes ' although the insured may travel or reside anywhere in the world, payment of benefit is restricted to 26 weeks in any period of one year, with an overall limit of 52 weeks, while travelling or residing outside of the following countries: Andorra, Australia, Austria, Belgium, Canada, Channel Islands, Cyprus, Denmark, Finland, France, Germany, Gibraltar, Greece, Iceland, Isle of Man, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, New Zealand, Norway, Portugal, Republic of Ireland, San Marino, Spain, Sweden, Switzerland, United Kingdom, United States and the Vatican State.
Cover operates in Europe: Yes ' although the insured may travel or reside anywhere in the world, payment of benefit is restricted to 26 weeks in any period of one year, with an overall limit of 52 weeks, while travelling or residing outside of the following countries: Andorra, Australia, Austria, Belgium, Canada, Channel Islands, Cyprus, Denmark, Finland, France, Germany, Gibraltar, Greece, Iceland, Isle of Man, Italy, Liechtenstein, Luxembourg, Malta, Monaco, Netherlands, New Zealand, Norway, Portugal, Republic of Ireland, San Marino, Spain, Sweden, Switzerland, United Kingdom, United States and the Vatican State.
Guaranteed insurability options available: Yes ' Increasable Insurance option ' under level cover the life assured can usually include an option to increase the cover without further medical evidence. They can then increase the cover by up to 30% of the original income benefit chosen, subject to the minimum premium rules current when the option is exercised.
Benefit percentage limit based on total income: Yes
State benefits deducted from benefit amount: Yes ' but only if the limitation clause applies at the time of claim.
Continuing income deducted from benefit amount: Yes ' but only if the limitation clause applies at the time of claim.
Other insurances deducted from benefit amount: Yes ' however, premiums waived due to incapacity under policies of life assurance are only deducted to the extent that those premiums exceed £60 per month in total. Insurances that waive contributions made by the life assured into statutory approved or exempt approved pension arrangements are not deducted.
Pension income deducted from the benefit amount: Pension income will only be deducted if it was not being received prior to disability and only if the limitation clause applies at the time of claim.
Number of occupation classes ' four:
• Class one ' professional, clerical or similar non-hazardous occupations.
• Class two ' slight extra risk is involved, administrative occupations in an industrial environment, sales occupations or occupations involving above average driving.
• Class three ' occupations involving some manual work, but no appreciable hazard or with a noticeably increased sickness risk, such as teachers or dentists.
• Class four ' occupations involving mainly manual work, or with a noticeably increased accident risk, such as builders.
Standard definition of disability: Own occupation means a period throughout which the life assured is totally unable, because of illness or accidental injury, to perform the material and substantial duties of their employment and is not engaged in a remunerative occupation.
Employment means each and every remunerative occupation in which the life assured has engaged during the period of 52 weeks immediately prior to the period of incapacity.
Own occupation definition of disability. Own occupation means a period throughout which the life assured is totally unable because of illness or accidental injury to perform the material and substantial duties of their employment and is not engaged in a remunerative occupation.
Two deferred periods in one plan: Yes ' where a person has more than one job or a tiered sick pay arrangement, so that two or more policies are effected with different deferred periods at the same time, the minimum premium and policy charge are reduced to £5pm and £2pm respectively.
Non-smoker rates available: A non-smoker is someone who has not used tobacco or nicotine products in the last 12 months.
