Provider: Prudential Product: Prudential protection Prudential protection allows mortgage cover t...
Provider: Prudential
Product: Prudential protection
Prudential protection allows mortgage cover to be arranged on a level or decreasing basis. It:
• Pays a cash lump sum chosen at outset, currently tax-free, on death or diagnosis of a terminal illness.
• Incorporates a large range of features and options, including critical illness (CI) cover, waiver of premium (WOP) benefit, mortgage payment benefit and unemployment cover.
Minimum acceptable age attained at commencement:
• Minimum age attained at entry without unemployment cover is 16.
• Minimum age attained at entry with unemployment cover is 18.
• Maximum age attained at commencement for life cover only 80 next birthday if no additional benefits are included.
• Maximum age at commencement for accelerated CI is 59 next birthday.
Maximum expiry age:
• 65 next birthday for life cover and CI cover.
• 65 next birthday if unemployment cover is included.
• 60 next birthday is WOP benefit and mortgage payment benefit are included.
Maximum term (yrs) for accelerated CI cover: 25
Maximum sum assured for life cover only: Cover is subject to underwriting and maximum cover limits. The current maximum sum assured for life cover only is £3m.
Maximum sum assured where accelerated CI is included: Cover is subject to underwriting and maximum cover limits. The current maximum sum assured for CI is £500,000.
CI cover as a % of life cover: 100% accelerated CI
Additional CI Benefit: Yes
Minimum acceptable monthly premium: £7.50
Guaranteed premium rates available: Yes, for life cover and accelerated CI.
Automatic sum assured indexation available: No
WOP available: Allows payments to the plan to be maintained if a client is unable to perform his or her own occupation in which he or she was engaged immediately prior to illness or injury. In some cases benefits will only be paid if the policyholder is unable to perform any occupation due to illness or injury. This will be indicated on the acceptance letter.
• A choice of three, six or 12 months deferred period is available.
• For joint life cases the same deferred period must be chosen.
• WOP benefit cover is available for housepersons, unemployed, students and retired people. An activities of daily living definition will apply:
• Continence – the ability to manage bowel and bladder functions such that an adequate level of personal hygiene can be maintained.
• Dressing – the ability to put on, take off, secure and unfasten all garments and any braces, artificial limbs or other surgical appliances.
• Feeding – the ability to feed oneself once food and drink have been prepared and made available.
• Mobility – the ability to move from one room to another in the insured's normal place of residence.
• Transferring – the ability to move from a bed to an upright chair or wheelchair, and vice versa.
• Washing – the ability to wash in the bath or shower (including getting into and out of the bath or shower) such that an adequate level of personal hygiene can be maintained.
Cover ceases on the plan anniversary prior to age 60. However, claims in payment will continue up to age 60.
Waiver benefit covers both lives: Yes
Plan allows inclusion of income protection (IP) benefit: Yes
Plans including option to include accident sickness and unemployment: Yes
Plan permits variations to sum assured other than GIO's: The sum assured cannot be increased or decreased.
Guaranteed insurability option:
Mortgage increase: Under this option, Prudential will increase the level of life and CI cover, subject to a maximum of £150,000, in line with the increase to the loan. If WOP benefit and mortgage payment benefit are included in the current plan, these may be included in the new plan. The premium to cover the cost of the increased benefit will be based on current rates in force at the time that the option is exercised. Standard terms will apply to the new plan. The limits on minimum premium, term and maximum cover limits will also apply to the new plan.
Birth or adoption: On birth or adoption, the level of life and CI cover can be increased by up to 50% of the initial level of cover, subject to a maximum of £150,000. If WOP benefit is included in the current plan this may be included in the new plan. The premium to cover the cost of the increased benefit will be based on current rates in force at the time that the option is exercised. Standard terms will apply to the new plan. The limits on minimum premium, term and maximum cover limits will also apply to the new plan. This option can only be exercised twice. The age limit applies to the first to reach 50 for joint life plans.
Marriage: On marriage, the level of life and CI cover can be increased by up to 50% of the initial level of cover, subject to a maximum of £150,000. If WOP benefit is included in the current plan this may be included in the new plan. The premium to cover the cost of the increased benefit will be based on current rates in force at the time that the option is exercised. Standard terms will apply to the new plan. The limits on minimum premium, term and maximum cover limits will also apply to the new plan. This option can only be exercised once.
Total number of CI conditions covered: 27
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
Number of other conditions covered: Seven
• Aids blood transfusion
• Aids occupation
• Alzheimer's disease
• Bacterial Meningitis
• Creutzfeldt-Jakob disease
• Major head trauma
• Pre-Senile Dementia
Children's CI: If CI cover is selected then it is included automatically for children of the life or lives assured. If the child is diagnosed as suffering from, and satisfies the definition of, one of the illnesses shown above; and survives for 28 days after the date of that diagnosis, a sum equal to 50% of the CI benefit will be payable, subject to a maximum of £20,000.
Benefits under this cover are subject to the following conditions:
• The life or lives assured must be either a parent or act as a legal guardian with the child being financially dependent on him or her (this includes legally adopted children and step-children)
• The child must be aged between 1st and 18th birthdays,
• Only one claim can be made in respect of each child. If a claim is made in respect of one child under more than one plan or policy, the maximum applies to the total amount payable under all the plans or policies.
No claim will be paid in either of the following circumstances:
• If the condition arises directly or indirectly from the exclusions.
• If the condition is as a result, in any way, of a pre-existing medical condition. Such a condition affecting the child is one which existed prior to any one or more of the date of currency, the child attaining the age of one year, or the legal adoption of the child.
The definition of total permanent disability (TPD) for children's CI cover is that the child, as a result of an illness or injury, when he reaches working age will be totally and permanently unable to follow any employment or occupation for profit or reward. A claim under children's CI cover does not bring the policy to an end.
Number of conditions covered for children's cover: 27
Basis for Inclusion of TPD: Automatically included with CI option.
No. of TPD definitions available: Two
The standard definition is as follows: The life assured, before his 60th birthday, having become totally and permanently unable as a result of an illness or injury to engage for profit or reward in the occupation in which he was engaged immediately prior to the start of the illness or injury. Provided that if the life assured is not engaged in a remunerative occupation immediately prior to the start of that illness or injury the definition below shall apply in determining whether or not there is a CI under this condition. Confirmation by a consultant Physician, of the total and permanent inability of the life assured before his 60th birthday to perform without the help of another person at least three of the ADWs listed.
No of exclusions applicable to CI: Seven
