This is a flexible protection plan designed to meet the protection needs of clients. Depending upon ...
This is a flexible protection plan designed to meet the protection needs of clients. Depending upon the benefits selected, the plan can pay out:
n A lump sum on death.
n A lump sum on critical illness.
n A lump sum on death or earlier critical illness.
n Regular amounts to meet monthly mortgage payments in the case of redundancy or incapacity.
n Full income protection (IP) benefits in the event of incapacity.
The types of cover available are:
n Life protection (including terminal
illness cover)
n Stand-alone critical illness (CI) protection (three versions available)
n Combined life and CI protection (three versions available)
n IP
n Mortgage payment protection health
n Mortgage payment protection
integrated health
n Mortgage payment protection unemployment
Other options include:
n Waiver of premium (WOP)
n A buy-back option
Maximum age at commencement of insured for accelerated CI cover
59
Maximum expiry age for accelerated
CI cover
64
Maximum term (yrs) for accelerated
CI cover
For combined life and CI cover with reviewable premiums, the maximum term is 40 years. With guaranteed premiums, the maximum term is 30 years. These are
both subject to the maximum age at expiry shown above.
Maximum sum assured where accelerated CI cover is included
There is no maximum sum assured, but standard quotes are subject to a maximum of £1m of cover. Higher amounts will be considered on a case by case basis.
CI cover as a percentage of life cover
Under combined life and CI protection (which is a separate benefit within the plan) a client can combine life cover and CI cover together under one policy. The sums assured for the CI and life elements may differ, however, if guaranteed premiums are chosen, the amount of CI cover may not exceed the amount of life protection benefit.
Guaranteed premium rates
Life cover rates can only be guaranteed. The planholder can have a combination of reviewable and guaranteed premiums for different elements of the plan.
Guaranteed premium rates for accelerated CI cover
Guaranteed rates are available for combined life and CI cover.
Reviewable premium rates
Stand-alone CI is only available with reviewable premiums. Combined life and CI cover is available with both reviewable and guaranteed premiums. Life cover is only available with guaranteed premiums.
Number of years before the first premium review
The first premium review occurs after five years. Subsequent reviews can occur at any time after the first five years, but if premium rates are changed, they cannot be changed for another 12 months.
Premiums
n Reviewable premiums are guaranteed for the first five years but may be reviewed at any time after that.
n If changed, premium rates may not be changed again for another 12 months.
Sum assured indexation
The sum assured can increase in line with increases in retail price index (RPI). Increases are effected at the plan anniversary (no increase will be made if the plan anniversary is within three months of the individual policy start date). The benefit will go up in line with the increase in the RPI for the 12-month period ending three months before the plan anniversary. The premium will go up directly in proportion to the increase in benefit.
WOP available
WOP is an optional benefit that can be included at any time. If WOP is chosen, and the life assured is incapacitated for longer than the chosen deferred period, then premiums for all policies under the whole plan will be waived. The premiums will continue to be waived while the life assured remains incapacitated, until the plan terminates, until the WOP cover terminates, or the life assured dies, whichever is earliest.
Deferred periods of one, two, three and six months are available.
The default definition is an own occupation definition for cover up to the age of 65. If waiver cover extends beyond age 65 then a work tasks definition is used for all benefits in payment post age 65.
Inclusion of IP benefit
IP is available as an option under the Flexible Protection Plan.
Option to include accident sickness and unemployment cover
Accident, sickness and unemployment can
be covered.
Plan offers the option to buy-back life cover after a claim
A life buy-back option is available on combined life and CI plans, where LV= has paid a claim for CI benefit. The buy-back is only available on a single life basis.
Guaranteed insurability option (GIO)
Unless the client is told otherwise when the application is considered, the plan will automatically benefit from certain GIOs, where no medical evidence will be required.
Life protection and CI
Up to a maximum age of 50, the plan owner can increase the existing cash sum covers by up to 50% of the benefit detailed in the benefit schedule (subject to an overall maximum of £150,000), within three months of the life assureds:
n Marriage/civil partnership registration.
n Birth or adoption of a child.
n Divorce/dissolution of a civil partnership.
n Increase of mortgage on moving house or home improvements.
Joint life separation
Yes
Extra Care
The service is offered at no cost to clients and is triggered upon payment of a CI claim. The service is provided by Red Arc Assured. The service is offered free and without any time limits.
What exactly is provided?
Extra Care will comprise:
n Access to a personal nurse adviser (who will be one of Red Arc's nurse case managers).
n One free home visit from a specialist nurse, agreed between the client and the case manager. Usually, but not exclusively, this covers the following: oncology, cardiology, neurology, rehabilitation, community, or
a course of therapy (physio, occupational, speech, complementary), or a course of specialist counselling, including bereavement counselling.
n A care plan, report or confirmatory letter highlighting key areas, action points and contact information.
n Follow-up from the personal nurse adviser to assist with any resultant queries and to offer further assistance where appropriate.
n Access to Red Arc's network of specialist charities, self-help groups, care and care equipment providers.
n Ongoing access to the personal nurse adviser by direct dial telephone, in normal business hours and without time limit.
Roadtohealth
Roadtohealth is available under the plan.
Children's benefit
This benefit automatically applies to all of the life assured's children while this policy is in force. If two lives assured are named in the benefit schedule all of their children are included.
The maximum benefit payable if a child suffers one of the specified critical illnesses is the lower of:
n £25,000, or
n 50% of the initial CI protection selected.
Basis for inclusion of total permanent disability (TPD)
There are three levels of CI in relation to TPD:
n CI protection including TPD cover
n CI protection excluding TPD cover
n TPD cover only.
