Select Protection - Guaranteed Rate Option
Provider: Friends Provident
Product: Select Protection - Guaranteed Rate Option
Overview: The plan can be arranged to include one or more of the following types of cover:
• Life cover - level or decreasing
• Critical illness cover - level, decreasing or increasing
• Life or earlier critical illness cover - level or decreasing
• Income protection cover - level or increasing
• Houseperson's cover - level
• Unemployment cover - level
Minimum acceptable age attained at commencement: The minimum age is 18.5 next birthday.
Maximum acceptable age at commencement: Maximum age varies depending on the type of cover selected:
Cover type Max age at commencement or when cover increased:
Life cover 60 (65 if level cover)
Life or earlier critical illness cover (+ PTD) 55
Critical illness cover (+ PTD) 55
Income protection cover 55
Houseperson's cover 55
Waiver of premium benefit 55
Unemployment cover 60
Maximum expiry age: Maximum age varies depending on the type of cover selected:
Cover Type Max age at end of cover term
Life cover 70
Life or earlier critical illness cover (+ PTD) 65 (guaranteed)
70 (reviewable)
Critical illness cover (+ PTD) 65 (guaranteed)
70 (reviewable)
Income protection cover 65
Houseperson's cover 65
Waiver of premium benefit 70
Unemployment cover 65
Maximum term: 25 years for guaranteed critical illness premiums, 35 years for life cover and reviewable critical illness premiums. Income protection and houseperson's covers to age 50-65 inclusive. Unemployment cover up to 65th birthday.
Maximum sum assured: £500,000 for critical illness or life or earlier critical illness total per life.
Critical illness cover as a % of life cover: If the amount of critical illness and life cover is to be different, this can be achieved with a mix of the cover types shown below.
The following types of cover are available:
• Life cover - level or decreasing (mortgage)
• Life or earlier critical illness cover - level or decreasing (mortgage)
• Critical illness cover - level or decreasing (mortgage)
• Income protection cover - level or increasing (by 5%p.a. compound on benefits and premiums)
• Houseperson's cover - level
• Waiver of premium benefit
The plan can include as many types of cover as the client needs, including more than one of the same type, such as for different terms and a mix of guaranteed and reviewable premiums where available. Each type of cover chosen is written as a separate independent policy within the plan.
Level critical illness benefit: Yes, as a separate cover within the plan.
Decreasing critical illness benefit: Yes, the cover will reduce in line with the outstanding capital on a repayment mortgage subject to repayments remaining up to date, and no increase in the loan or its repayment term. Subject to these conditions the outstanding mortgage capital is fully covered for interest rates.
Plan can provide critical illness benefit paid as income: No
Waiver of premium available: This option is available for an additional premium to applicants up to age 55 next birthday. For joint life policies the benefit can apply to either or both lives. The mortgage increase and extension option and special events option are suspended during the period of a claim. Only one waiver claim can be made at any time on a joint policy.
Waiver with 26 weeks/six month deferred period: Yes
Default waiver definition of disability: Definition of own occupation - the life assured is totally unable because of illness or accidental injury to perform the material and substantial duties of their employment and is not engaged in a remunerative occupation. Employment means each and every remunerative occupation of the life assured immediately prior to incapacity.
Waiver benefit covers both lives: On joint life plans waiver can apply to either or both lives.
Does the plan offer income protection as a rider benefit: Yes - income protection cover can be included within the plan. This cover provides a replacement income if the life assured is unable to work or meet certain incapacity assessment criteria. It can be written to protect mortgage repayments or to provide full income protection based on the following formula:
• 70% of the first £10,000 of pre-incapacity earnings
• 60% of the next £20,000 of pre-incapacity earnings
• 50% of the next £40,000 of pre-incapacity earnings
• 40% of the excess above £70,000
Subject to an overall maximum benefit of £124,800 per annum (2,400 per week) income protection cover can be included within the plan at any time.
Unemployment cover option: Yes, choice of 12 or 24-month maximum benefit payment period with immediate cover on new mortgages and 90 days on existing mortgages. Unemployment cover can be taken at any time and has a one month deferred period.
Hospital cash cover: Included with income protection benefit. This benefit is included free of charge. Benefit will be paid if the insured is confined to hospital for more than eight days during the deferred period.
Does the plan offer the option to buy-back life cover after a claim: No
Does the plan offer the option to buy-back critical illness cover after a claim: No
Flexibility: The following types of change can be made at any time, subject to underwriting, where the risk is increased:
• Add a new cover
• Remove a cover
• Increase cover
• Reduce cover
• Add a life assured
• Remove a life assured
• Extend the term of cover
• Reduce the term of cover
• Change from level cover, increasing cover or decreasing cover to another type of cover
• Change of premium frequency
Joint life with 2x cover basis available: Yes - as each type of cover within the plan is a separate policy, a mix of single and joint life covers can be selected except on income protection cover and houseperson's cover, that are written on a single life basis, though both lives can apply for separate single life policies within the plan.
Guaranteed insurability option: Insurability options are available for mortgage increase or extension, marriage and childbirth.
Guaranteed rates available: Yes, there is an option to have the premiums guaranteed throughout the term, except where unemployment cover is included. If guaranteed rates are selected angioplasty and children's benefits are not available. Where angioplasty is included, premiums are reviewed after five years then reviewed on an annual basis until the end of the term.
Number of core critical conditions as defined by ABI/IFAA: Seven, they are:
• Cancer
• Coronary artery bypass surgery
• Heart attack
• Kidney failure
• Major organ transplant
• Multiple sclerosis
• Stroke
Number of ABI/IFAA additional conditions covered: 13, they are:
• 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: 10, they are:
• AIDS through assault
• AIDS through blood transfusion
• AIDS through occupation
• Alzheimer's disease
• Bacterial Meningitis
• Children's benefit
• Creutzfeldt-Jakob disease
• Open heart surgery
• Pre-Senile dementia
• Progressive supra nuclear palsy
• Angioplasty - only available under reviewable premium plans
Number of total permanent disability definitions available: Two. The life assured, before the policy anniversary following their 60th birthday, is totally and permanently unable because of illness or accidental injury to perform, throughout the remainder of their lifetime irrespective of when life cover ceases or the life assured retires, the material and substantial duties of each and every remunerative occupation in which they were engaged in the 12 months immediately before the date of disability.
Survival period for critical illness claims: There is a 14-day survival period for critical illness cover written as the only benefit, however for life or earlier critical illness cover there is no survival period.
Number of exclusions applicable to critical illness: Four
Provider's website: www.friendsprovident.com
