UnumProvident

Provider: UnumProvident

Product: Personal income replacement plan

Maximum age attained at entry: 59

Eligibility: If the applicant works between 25 and 80 hours per week and is in a reasonable state of health, they can apply for an income protection (IP) plan at any age between 18 and 59, provided cover runs for at least five years.

Maximum annual benefit available: The benefit must not exceed £175,000 per year. Cover then increases every year with inflation to a maximum of £350,000.

Retirement age: This is usually 65, although cover can be arranged to any age between 50 and 65.

Monthly policy fee: The administration charge under the plan is £2.80 per month.

Increase the retirement age after start date: The term of the plan may be amended, subject to premium alteration and underwriting.

Decrease term after start date: The term of the plan may be amended, subject to premium alteration and underwriting.

Increase/decrease benefit subject to underwriting: The sum insured may be amended, subject to premium alteration and underwriting.

Guaranteed insurability options (GIOs) available: Yes. Provided the plan is accepted on normal terms, the life insured has the option to purchase more IP at specific times without having to provide further medical or financial evidence. No increases can be made beyond the insured's 55th birthday or in the last five years of the policy term.

The option must be exercised within three months of the event and is not permitted while a claim is in payment or under consideration and will not apply to any linked claims. The rules governing the GIO allow increases in cover of up to 50% of the original benefit, up to a maximum of £8,000 per year.

The events are as follows:

• Mortgage increase associated with house moving or home improvements.

• Marriage

• Childbirth or adoption

• Salary increase following a significant promotion or achievement of a professional qualification.

Benefit amount index linked: Increasing cover - if selected at outset, cover under the policy automatically increases each year in line with the RPI. An appropriate additional premium will apply. An increase may be declined. If two consecutive increases are declined, the option to increase will be lost without a fresh assessment of health and pastimes.

Benefit amount indexed by a fixed percentage: Benefit in payment can be indexed 5% per year.

Plan available without indexation: Yes

Waiver of premium available: Premiums do not have to be paid while receiving benefit. Premiums should be continued until a claim is accepted. Premiums are payable during the deferred period.

Waiver of premium deferred period as main policy benefit deferred: In accordance with the main plan.

Maximum age at entry to include waiver benefit: 59

Age waiver cover ceases: 65

Waiver definition of disability same as policy: Yes

Waiver benefit amount indexed in line with IP benefit: Yes

Guaranteed premium rates available: Yes

Reviewable premium rates available: Yes

Career break available: Yes

Houseperson cover available: Cover is provided while not in paid occupation, which reverts to houseperson's cover. The definition of disability changes to that defined within UnumProvident's essential ability cover.

Deferred period applicable to housepersons benefit: Four, eight, 13, 26, and 52 weeks.

Proportionate/rehabilitation benefit available: If ill health renders the insured incapacitated, they may still be able to work but suffer a drop in salary. This may occur because they are initially only able to return to their job on a part-time basis or may have to take up different work at a lower income.

If, in these circumstances, the insured suffers a loss of earnings, the plan would pay a benefit proportionate to their loss of earnings, provided notification is given within 31 days of undertaking employment.

The calculation of proportionate benefit will be related to changes in the RPI. The insured will continue to receive a proportionate amount of benefit until they regain their inflation adjusted pre-incapacity income, reach the specified retirement age, or recover sufficiently to allow a return to their insured occupation.

Relapse benefit available: If, after having received benefits and claiming again from the same cause within 12 months of returning to work, the deferred period will not apply. Payment of premiums must be resumed on returning to work in order to maintain cover.

Benefit payable during unemployment: Yes. This provides cover while not in a paid occupation, which reverts to houseperson's cover. The maximum payable will be the benefit under the policy before the option was exercised.

Hospitalisation benefit available: No

Permanent total disability benefit available: The Disability Plus Option can be selected at the start of the plan and provides 20% more benefit after the insured has been receiving benefit for two years. The maximum benefit rule would no longer apply in these circumstances.

Disability counsellors used: During claim, UnumProvident's team of rehabilitation co-ordinators provide support and assistance in rehabilitation.

Cover operates worldwide: When effecting the policy a person must be resident and actively at work in the UK, with no immediate intention to move abroad. However, cover can continue while subsequently living or working abroad.

Claims are payable while living in the following countries: Australia, Austria, Belgium, Canada, Channel Islands, Cyprus, Denmark, Eire, Finland, France, Germany, Gibraltar, Greece, Iceland, Isle of Man, Italy, Japan, Luxembourg, Malta, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK, United States.

If the claimant is living outside these countries, benefits are payable for a maximum of six months. Travel on holiday outside these countries is permitted for two months in any year while claiming.

Death benefit available: Yes

Maximum % of income insurable: The benefit stated in the policy must not exceed the lesser of 50% of pre-incapacity earnings or £175,000 per year. This includes the taxable value of certain benefits in kind that would stop in the event of incapacity.

Benefit percentage limit based on total income: The benefit stated in the policy must not exceed the lesser of 50% of pre-incapacity earnings or £175,000 per year including the taxable value of benefits in kind. Cover then increases every year with inflation to a maximum of £350,000. Total cover must not exceed 50% of pre-incapacity earnings.

Pre-incapacity earnings: If employed - this means pre-tax earnings for PAYE assessment purposes in the 12 months before incapacity. This includes the taxable value of benefits in kind that would cease in the event of incapacity.

If self-employed - this means pre-tax profits from a trade profession or vocation for the purposes of schedule D case I and case II of the Income and Corporation Taxes Act 1988, in the 12 months before incapacity.

If income fluctuates, when applying for cover average earnings over the past three years can be taken into account. Continuing income during illness, for example from savings and investments will not be covered.

Notification of a change in occupation required: No. It is not necessary to notify UnumProvident of a change of occupation unless claiming benefit, in which case any changes that might effect entitlement to benefit must be advised.

Standard definition of disability: For most occupations the definition used to assess benefit is: "You are unable by reason of illness or injury to perform the material and substantial duties of your occupation." Material and substantial means those duties normally required to carry out an occupation that cannot reasonably be omitted or modified by the claimant or their employer.

Own occupation definition of disability: "You are unable by reason of illness or injury to perform the material and substantial duties of your occupation."

Any occupation definition of disability: Available for certain occupations: "You are unable by reason of illness or injury to perform the material and substantial duties of your occupation or any other occupation."

Any suited definition of disability: Available for certain occupations. The claimant is incapacitated when UnumProvident determines that, due to sickness or injury, they are incapable of performing the material and substantial duties of their own occupation or of any other occupation for which they are suited by reason of education, training or experience.

Definition of disability linked to activities of daily living: N/A

Deferred Periods: Four, eight 13, 26, and 52 weeks.

Two deferred periods in one plan: Yes. If the applicant has a variation in their continuing income from their employer. For example, teachers may receive six months full pay in the event of incapacity and then six months half pay. UnumProvident can offer a reduced policy after one deferred period and another policy after another deferred period.

Number of exclusions applying to the plan: Two