Depending on the options chosen, the plan can provide: A cash sum if: n A client dies or is diag...
Depending on the options chosen, the plan can provide:
A cash sum if:
n A client dies or is diagnosed with Prudential's definition of a terminal illness.
n A client or their children are diagnosed with a specified serious illness that is covered by the plan.
n A client stops work to become a registered carer for a close family relative.
n A client is diagnosed with a specified disability that is covered by the plan. In some cases, the claimant may receive a regular income instead of a lump sum.
A monthly income if:
n A client cannot work due to illness or injury, or they become unemployed through no fault of their own.
PruProtect also has a Vitality system. Vitality is PruProtect's way of rewarding policyholders for looking after their health. Vitality encourages policyholders to stay healthy and recognises their efforts by helping them manage the cost of their yearly premiums. The programme concentrates upon the following five main areas necessary to maintaining and improving an individual's health and wellbeing:
n Exercise
n Screening
n Not smoking
n Nutrition
n Education
Policyholders can earn Vitality points by engaging in a range of health and wellbeing-related activities such as going to the gym, walking regularly, undergoing a free fitness assessment, attending a health screening, downloading healthy meal plans and either giving up smoking or declaring themselves as a non-smoker. The majority of Vitality activities are free or available at PruProtect's subsidised rates. Most points are gathered automatically from PruProtect's Vitality partners or policyholders can easily submit them to the provider themselves.
The plan offers four reward statuses: bronze, silver, gold and platinum; and the more points that members earn, the higher the status they achieve. Everyone starts on bronze status and once they have collected a certain number of points, they will move up to the next level – silver, then gold and ultimately platinum. A policyholder's Vitality status at the end of each policy year will help determine how much their premium for the next year will increase or decrease.
Benefit term options
The plan can be arranged either on:
n A whole of life basis, with periodically reviewable premiums.
n A fixed-term basis, with a choice of reviewable or guaranteed premiums.
Core benefits
The following core benefits are available:
n Life cover
n Serious illness cover
These are available on a single life or joint life first death (life cover) basis.
Benefits attached to the plan account
n Life cover
n Serious illness cover
n Optional serious illness cover for children
Additional benefits – not attached to the plan account
In addition to the above, the following benefits can be added to the plan if one or more of the core benefits is present on the plan:
n Disability cover
n Income protection cover
n Unemployment cover
Summary of key areas
n Pays out on a wide range of conditions.
n Pays out on more than one event (subject to the insured fund not being completely depleted).
n Allows the policy to continue after a claim (subject to the insured fund not being completely depleted).
n Allows the cover to be replenished after a claim without new exclusions (if 'minimum protected account' has been selected).
n Links payouts to the severity of the event.
n Provides an annual policy statement indicating cover and premium levels.
n Allows simultaneous claims for benefits chosen, such as life cover, serious illness cover and disability cover.
n Additional child cover option.
Serious illness cover
Serious illness cover aims to pay out a lump sum should the insured be diagnosed with a serious illness, and meets the definition for the serious illness that affects the insured's lifestyle in such a way that their ability to function normally is altered. Unlike standard critical illness (CI) products, the serious illness cover has been designed so that the benefit amounts are proportional to the severity of the condition itself with payments ranging from 10% to 100% of the serious illness cover amount.
Maximum age attained at commencement of insured for life cover only
74
Maximum age at commencement of insured for accelerated CI cover
64
Maximum expiry age for life cover
79
Maximum expiry age for accelerated
CI cover
Where serious illness cover is included, the maximum expiry age is 69 attained. This age limit applies for both guaranteed or reviewable premiums.
Minimum sum assured
The minimum sum assured is £10,000 for life cover, serious illness benefit and disability cover.
Maximum sum assured for life cover only
£5m
Minimum acceptable monthly premium
£25 a month.
Guaranteed premium rates
Premium rates for life cover can be guaranteed or reviewable.
Guaranteed premium rates for accelerated CI cover
Premiums for accelerated serious illness cover can be guaranteed or reviewable.
Reviewable premium rates
The premiums will be reviewed on the fifth plan anniversary and, if premiums remain unaltered, they may be reviewed for each benefit annually after that. Once a review takes place that leads to a change in premiums, then Prudential will not review the premiums for that benefit for a further five years from the date of such variation.
Automatic sum assured indexation available
An indexed plan account will increase in line with the retail price index, subject to a maximum increase of 10% and a minimum increase of 0% in any one year. In the event of a claim reducing the plan account, indexation will continue to apply to the (now lower) plan account. The premium and benefit increases will occur at each plan anniversary, with the first increase occurring 12 months after the start date of the plan.
Joint life first death plan available
Yes
Option to include accident sickness and unemployment cover
Yes
Plan offers the option to buy-back life cover after a claim
Yes
Number of CI conditions as defined by the Association of British Insurers (ABI)
Where serious illness cover is chosen, the plan covers more than 154 illnesses, covering 14 claimable areas of the body. There are six defined severity levels, with the option for clients to choose to cover the four most serious levels (primary cover) or all six levels (comprehensive cover).
All 23 ABI conditions are covered.
Children's benefit
Serious illness cover is available for children. The 'core' serious illness cover is automatically provided where serious illness cover is a benefit selected under the plan account. In addition, there is an option to effect up to a further £100,000 serious illness cover for each child named on the application form.
Basis for inclusion of total and permanent disability
Disability cover is available for permanent, partial and (in some cases) temporary disability. There are over 60 disabilities and illnesses covered for category A and B conditions (in other words lump sum payments of 100% and 50% of the benefit amount respectively).
Survival period for CI cover claims
14 days
Number of exclusions applicable to CI cover
Four
