Protection Choices is designed to allow the planholder to change their protection during the term to...
Protection Choices is designed to allow the planholder to change their protection during the term to cater for changes in their lifestyle. The plan can include the following benefits:
n Term life cover (level or decreasing, including terminal illness cover)
n Term critical illness (CI) cover (level or decreasing, including total permanent disability benefit (TPD) and children's cover)
n Family income benefit
n Mortgage payment protection insurance
n Unemployment cover (only available with payment insurance)
n Waiver of payment benefit
n Indexation (not available with stand-alone CI cover)
n SmoothMove moving day rescue service
Minimum acceptable age attained at commencement: 17 years
Maximum age at commencement for accelerated CI:
59 years
Maximum expiry age for accelerated CI: 64 years
Maximum term for accelerated CI (reviewable): 35 years
Maximum term for accelerated CI (guaranteed): 25 years
Maximum sum assured where accelerated CI is included:
£500,000 for reviewable premiums and £250,000 for guaranteed premiums.
CI cover as a percentage of life cover:
Any percentage up to 100% accelerated. The plan allows different levels of life cover, accelerated CI and stand-alone CI within the menu of options.
Additional CI cover:
This plan can be taken out as a stand-alone CI plan.
Minimum acceptable monthly premium: £10
Guaranteed premium rates:
Rates can be guaranteed throughout term.
Guaranteed premium rates for accelerated CI:
For plans where life and CI cover is chosen, the rates can be reviewable or guaranteed.
Reviewable premium rates:
CI cover rates are reviewable.
Number of years before the first premium review:
Premiums are reviewed after five years.
Indexation option:
If the planholder has chosen to add the indexation option to their plan, the sum assured together with the premiums they pay will increase each year in line with inflation. The amount of the increase will be decided by Legal & General, which will calculate the increase with reference to the change in the retail price index (RPI).
Sum assured indexation in line with RPI:
The amount of cover and premium increase will be subject to a maximum of 10% a year.
Basis on which indexation increases are costed:
The indexation option can only be chosen at outset, at an additional cost, provided the insured is accepted at ordinary rates.
Joint life first death plan available: Yes
Joint life with 2x cover basis available:
The plan allows different levels of life cover, accelerated CI and stand-alone CI within the menu of options.
Plan available on a life of another basis: Yes
Waiver of premium (WOP) available:
WOP is available as an optional benefit at outset, provided:
n The life assured is under the age of 55 at outset, and
n Is accepted on standard terms
The benefit will become payable six months after the insured becomes totally incapacitated from following their normal occupation by reason of sickness or accident necessitating in medical or surgical treatment and are not following any other occupation.
Maximum age at entry to include waiver benefit: 54 years
Age waiver cover ceases: 60 years
Plan offers an own occupation definiton of disability:
The "own occupation" definition is the default definition for WOP. It is as follows: "Totally incapacitated from following their normal occupation by reason of illness or accident, necessitating medical or surgical treatment.
Plan allows inclusion of income protection benefit: Yes
Unemployment cover: Yes
Plan offers the option to buy back life cover after a claim:
Not available
Plan offers the option to buy back CI cover after a claim:
Not available
Guaranteed insurability option (GIO):
Guaranteed insurability entitles the policyholder to increase the level of cover without the need for further medical evidence of health, upon the occurrence of certain events:
n Marriage or entering into a civil partnership.
n The birth or adoption of a child.
n Changing a mortgage because of moving or improving an existing home.
Maximum age to exercise GIO: 49 attained
Number of months to qualify as a non-smoker: 12 months
2006 model ABI CI definitions adopted:
This product now uses the 2006 ABI model CI definitions.
Children's CI cover (included where CI cover is selected):
Children's CI cover is included at no extra cost. If a child is diagnosed as suffering from a defined critical illness during the term of the plan, and survives for 28 days from the date of diagnosis, then a lump sum will be paid.
n The amount of the lump sum will be up to £15,000 or 50% of the guaranteed sum assured, whichever is the lower. This is an additional benefit and does not affect the guaranteed sum assured under the plan.
n To be covered the child must be aged over 26 weeks and under 18.
n The 28-day survival period may extend beyond the 18th birthday.
n Only one claim can be made for each child covered and when two claims have been accepted the cover will cease.
n The illnesses covered by the children's cover are those illnesses covered by the main plan but excluding TPD and including bacterial meningitis.
Bacterial meningitis is defined as:
n Bacterial meningitis causing inflammation of the membranes of the brain or spinal cord resulting in permanent neurological effect. An unequivocal diagnosis by a consultant at a major hospital in the UK.
Child maximum benefit:
Children's CI cover would be:
n Up to £15,000, or
n 50% of the guaranteed sum assured, whichever is the lower.
Minimum age for children's benefit:
To be covered, a child must be aged over 26 weeks and less than 18 years.
Basis for inclusion of TPD:
The plan will pay out if the policyholder is totally and permanently disabled. There are two types of cover:
n Own occupation definition
n Functional assessment test definition
Number of exclusions applicable to CI cover:
There are four CI cover exclusions:
n Drug abuse
n Self-inflicted injury
n War and civil commotion
n HIV/Aids (except for named groups, blood transfusion or through assault)
