Skandia

Provider: Skandia

Product: Skandia protect fixed-term

The plan allows clients to tailor their insurance requirements. It can be arranged to include the following benefits:

Life cover – can be arranged on a fixed-term, rolling term or whole of life (WOL) basis.

Critical illness (CI) – can be arranged on a standalone basis or as an accelerated death benefit on a fixed-term or rolling term basis.

Long term care (LTC) – can be arranged on a single premium or regular premium basis with deferred period of three or 12 months on a WOL basis.

Optional benefits at extra cost:

Total permanent disability (TPD) benefit

Premium protection benefit

Cover reinstatement option

Optional benefits at no cost:

Continuing cover option

Inflation proofing

Guaranteed insurability option (GIO)

Advice services

Instalment option for claim payments

The plan provides flexibility to add, remove and vary benefits.

Minimum acceptable age attained at commencement: The policyholder must be 18 or over.

Maximum expiry age: Life cover 100 attained, CI cover 70 attained (applies to older life for joint life assurance).

Maximum term in years: Plans which include CI – maximum term of 25 years (35 years for life cover).

Maximum sum assured: For CI cover with a fixed term:

n £1m for terms of ten years or less or rolling term policies

n £500,000 for terms of over ten years

n No maximum sum assured for life cover

CI cover as a % of life cover: By setting up a number of policies within one plan, it is possible to select differing amounts of CI cover. For combined CI and life policies, Skandia will pay the sum assured on the earlier of death CI. For a CI claim, this means the life cover would end on such policies, unless the cover reinstatement option was included in the policy and was exercised.

Level CI benefit: Yes

Decreasing CI benefit: No

The plan can provide CI benefit paid as income. The client can choose whether the benefit is paid as a single lump sum or in instalments. Under the instalment option, 25% of the benefit is paid each year for the four years following a claim, without interest. If the plan is arranged for personal protection the instalment option can be chosen at any time. For key employee cover, if the company wants the sum assured to be paid in instalments, it must decide at the outset.

Waiver of premium available: Yes, premium protection benefit. This optional benefit is available at an extra cost with life cover, CI and LTC cover. Premiums are paid if the life assured becomes sick or disabled and is unable to work.

Waiver deferred period: Six months

Maximum age at entry to include waiver benefit: Premium protection can be added at outset or at any time before the life assured's 65th birthday.

Age waiver cover ceases: 65

Default waiver definition of disability: Premium protection benefit has two definitions and the one that applies will depend on the life assured's occupation. For lives assured with mainly office based professional or clerical occupations, Skandia will offer the 'own occupation' version.

Own occupation definition – Skandia will pay premium protection benefit if the life assured is unable to perform his or her insured occupation. For lives assured in a manual occupation or a role in a non-clerical workplace, Skandia will usually offer the 'activities of daily work' (ADW) version.

ADW definition – Skandia will pay premium protection benefit if the life assured is unable to carry out three of the eight specified ADWs:

Bending – the ability to bend or kneel to pick up something from the floor and straighten up again.

Climbing – the ability to walk up and down a flight of 12 stairs without holding on or resting.

Communicating – the ability to answer the telephone and take a message for someone.

General health – the ability to independently arrange to see a doctor and take routine prescribed medication.

Lifting – the ability to lift, carry or otherwise move everyday objects using either hand. Everyday objects would include a kettle of water, bags of shopping, an overnight bag or briefcase.

Manual dexterity – the ability to use hands and fingers with precision, including the ability to pick up and manipulate small objects such as pens or cutlery.

Reading – the ability to read ordinary newsprint, with spectacles or contact lenses if necessary, or to pass the standard eye test for driving. This activity would be failed if the relevant life assured is certified blind or partially sighted by an ophthalmologist.

Walking – the ability to walk a distance of more than 200m on flat ground without stopping or without severe discomfort.

Waiver benefit covers both lives: For joint life policies, either or both lives assured can add premium protection benefit.

Does the plan offer the option to buy-back life cover after a claim: Yes

Joint life with 2x cover basis available: Yes. The policyholder can set up two single policies within one plan.

Automatic sum assured indexation available: Skandia offers two inflation options to all policyholders. When the policyholder takes out the policy, he or she can choose to use the inflation option automatically or on request. The automatic inflation option works by routinely increasing the sum assured each year. Under the inflation option on request, Skandia will offer to increase the sum assured each year.

Sum assured indexation in line with RPI: The policyholder can choose at outset whether to increase the sum assured by:

The greater of 5% or the increase in RPI over the previous year or

The greater of 10% or the increase in RPI over the previous year.

GIO available: Yes

GIO on marriage: Yes

GIO on divorce: Yes

GIO on childbirth or adoption: Yes

GIO on moving house / increase in mortgage/loan: Yes

GIO on promotion or salary increase: Yes

GIO on an increase in inheritance tax liability: Yes

GIO on increase in business liabilities: Yes

Other GIOs offered: Retirement option. If the life assured is a member of an occupational pension scheme, and will lose associated life cover on retirement, he or she may either increase existing life cover, or add a further life cover policy into their Skandia Protect plan without underwriting. The option must be used within three months of retirement and the maximum increase is £100,000.

Guaranteed rates available: Premiums are guaranteed for the full term of the policy.

Reviewable rate option under the plan: Policy can be taken out on rolling term basis. This unique term gives guaranteed insurance for life with premiums guaranteed for ten years at a time. Just before the end of the term the client is offered the option to renew the insurance for a further ten years. The new premium will be based on the life assured's age at that time, the sum assured and the options selected. The premium is then guaranteed for the next ten years.

Number of core critical conditions as defined by ABI/IFAA: Seven. 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, 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.

Other conditions covered: Aids through assault, blood transfusion or occupation, alzheimer's disease, angioplasty, bacterial meningitis, cardiomyopathy, children's benefit, loss of independence, mastectomy definition, pre-senile dementia, progressive supranuclear palsy, low grade prostate cancer. Also, surgery benefit and serious accident benefit.

Does the product offer access to support helplines: Yes. Best Doctors – Skandia offers CI claimants the independent support service, Best Doctors. Best Doctors is specifically geared towards providing help and advice for second opinions and fast access to treatment. The Skandia claims department can provide more information about how this service may be able to help the client, when they pay the claim.

Grace Consulting – Grace Consulting is an independent organisation specialising in helping those who need LTC. If a client needs LTC, Skandia will ask one of the Grace care advisers to see him or her. The adviser will be able to help, for example, by recommending suitable assistive devices or in finding suitable domiciliary or residential care. The Skandia claims department can give more information about how this service may be able to help a client, when they pay the claim.

Basis for inclusion of TPD: TPD benefit can be chosen at outset or added to a policy at any time before age 65.

Survival period for CI cover claims in days: If the policy has been set up as CI cover only, Skandia will pay the sum assured if the life assured survives for at least 14 days after the relevant diagnosis has been made or after surgery has been performed.