The plan offers the following choice of benefits: n Death Benefit n Death or earlier critical illn...
The plan offers the following choice of benefits:
n Death Benefit
n Death or earlier critical illness (CI) benefit
n CI benefit
n Disability income benefit (sickness, accident and disability)
n Premium payment benefit (sickness, accident or disability)
The planholder may select as many benefits as they require - all within the same plan.
As well as shown above, Scottish Provident automatically includes children's CI cover when the planholder chooses death or earlier CI benefit or CI benefit.
The Self Assurance range also features the following benefits:
n Buyback option
n Children's income benefit
n Immediate cash benefit
n Immediate free cover
n Self assurance lifeline
Minimum acceptable age attained at commencement for insured: 18 years old
Maximum age attained at commencement of insured for life cover only: 79 years old
The maximum age at entry for a proposal for life with accelerated CI is 69 years old.
Minimum policy term: Five years
Maximum expiry age for life cover: 85 years old
The maximum age at expiry for life with accelerated CI is 85 years old.
Maximum term for life cover only: 40 years
The maximum term available for life with accelerated CI cover is 40 years.
Maximum sum assured for life cover only: There is no maximum sum assured for life cover. The maximum sum assured for the CI cover is £500,000.
CI cover as a percentage of life cover: 1% to 100% accelerated where life with CI protection is chosen. Or, any amount when CI and life are separate benefits.
Minimum acceptable monthly premium: £5
Guaranteed premium rates for life cover: Yes
Renewable rate option available: Renewable term.
Instead of choosing a specific term on some benefits policyholders can choose to renew their cover on a five-year or 10-year basis. At the end of the five or 10 years, they will be able to renew their cover for a further five or 10 years without the need to provide medical evidence. They must have paid all premiums due throughout the period of cover.
Automatic sum assured indexation available: The benefit will increase each year by the increase in the retail price index (RPI). However, it will not increase by more than 10% each year. The premium for that benefit will increase by the increase in the RPI multiplied by 1.4. Benefit will increase on the policy anniversary after cover starts.
Single life plan available: Yes
Joint life first death plan available: Yes
Joint life with 2x cover basis available: Available by setting up two separate policies in the same plan.
Plan available on a life of another basis: Yes
Cover can be arranged on a temporary basis. Stop gap cover is not available.
Monthly policy fee: No
Waiver of premium available: Premium payment benefit (sickness, accident or disability). When policyholders take out their benefits, they can choose the deferred period they want.
The cost for this benefit depends on the deferred period they choose:
n 13 weeks 4.5% of the premium
n 26 weeks 3% of the premium
n 52 weeks 2.7% of the premium
If they choose disability income benefit (sickness, accident or disability) with a deferred period of four weeks, their premium payment benefit (sickness, accident or disability) will also have a four week deferred period, unless they tell Scottish Provident otherwise. The cost of this benefit is 8.5% of the premium.
The deferred period is the period during which an insured person must be ill or disabled before Scottish Provident will pay any benefit.
The firm will pay the premiums until the first of the following events happens:
n In its reasonable opinion, the policyholder recovers
n The policyholder reaches the end of their plan term
n They die
Maximum age at entry to include waiver of premium benefit: 59 years old
Age waiver cover ceases: 85 years old
Own occupation: The planholder must, in the opinion of Scottish Provident, be unable to do their own occupation due to sickness, an accident or disability.
Changes to plan: The policyholder can make all of the following changes at any time:
n Add a new benefit
n Remove a benefit
n Increase a benefit
n Reduce a benefit
n Add a life assured
n Remove a life assured
n Extend the term of a benefit
n Reduce the term of a benefit
n Change from a level benefit to an increasing benefit
n Change from an increasing benefit to a level benefit
n Change the way they pay premiums
n Alter a deferred period
Their premium will change when they make changes to their plan. Scottish Provident may need to ask for medical or financial evidence to deal with some of the changes.
Clients can increase death, death or earlier CI, CI, disability income and unemployment benefits by up to 50% of the original benefit amount.
However, the increase cannot be for more than:
n £150,000 for lump sum benefits
n £8,000 a year for income benefits
n An amount which when added to their original benefit amount takes the total above the maximum level set by the provider
A policyholder can take advantage of these increase options until they reach 55 (first life to reach 55 if they choose joint life benefit).
Plans allowing income to be commuted to a lump sum:
If, when they make a claim they do not want to receive an income (or instalments under term business plans) and would prefer to receive a lump sum, they can change their income to achieve this. Scottish Provident will work out their lump sum based on its terms at the time, which will allow it to pay their benefit early. If they die while Scottish Provident is paying a CI income benefit, their representatives will have the choice of continuing to receive the income to the end of the benefit term, or they can change the income left into a lump sum. The insurer will work out the lump sum the same way as noted above.
Free cover during underwriting:
The insured could be eligible for immediate or mortgage free cover if they have applied for death benefit, death or earlier CI benefit or CI benefit.
Terminal illness:
Terminal illness is automatically included with life cover. Scottish Provident will pay benefit in the event of diagnosis by a medical specialist of a condition where life expectancy is not more than 12 months after diagnosis, or until the end of the benefit term if earlier.
CI conditions covered: There are 27 CI conditions.
Children's CI benefit:
Scottish Provident automatically includes children's CI benefit when a customer chooses death or earlier CI benefit or CI benefit.
