The plan is designed to protect repayment mortgages or commercial loans by paying out on either: n ...
The plan is designed to protect repayment mortgages or commercial loans by paying out on either:
n Life cover only
n Life or earlier critical illness (CI) cover
CI cover is an optional benefit with this product when life or earlier CI cover is selected.
Minimum acceptable age attained at commencement for insured
The minimum age at outset is 16 attained. If the plan covers two people, both must be at least 16. If the client wants to include the payment protection benefit, the maximum age is 59 for when the plan starts.
Maximum age attained at commencement of insured for life cover only
The life assured must be between 16 and 64 years old when the plan starts. If the plan is written as joint life, the same age restrictions apply. If the plan includes payment protection benefit, the maximum age to apply for the plan is 59.
Minimum policy term
The minimum term for life cover is one year, and five years for plans including CI cover.
Maximum expiry age for accelerated CI
The plan will expire on or before the client's 70th birthday (69 attained).
Maximum term (yrs) for accelerated CI cover
30 years
Maximum sum assured for life cover only
There is no maximum sum assured for life cover, this will be dependent on reassurance.
Maximum sum assured where accelerated CI is included
£1m
Additional CI benefit
Not available
Minimum acceptable monthly premium
£8 a month
Plans allowing a choice of interest rate assumptions
The plan assumes the client's repayment mortgage has an interest rate of 10% a year.
Guaranteed premium rates
Premiums for life cover and CI cover are guaranteed.
Joint life first death plan available
The plan can be issued on a joint life, first death/claim basis.
Waiver of premium available
Waiver of payment is available as an optional benefit at outset only. If this benefit is chosen, Zurich will make payments for the policyholder if they are incapacitated (after the plan has started) and are unable to perform their own occupation because of illness or injury for at least six months (called the deferred period). Policyholders must carry on making payments during the deferred period or until a claim is accepted if later.
The maximum age at entry for waiver of premium
54 attained. The waiver of premium ceases on the plan's anniversary after the client's 65th birthday.
Waiver benefit covers both lives
Not available
Plan allows inclusion of income protection (IP) benefit
Payment protection benefit. If this benefit is chosen, Zurich will pay policyholders an income every month if they cannot perform their own occupation because they are incapacitated due to illness or injury. The incapacity must have started after the plan began and policyholders must be totally incapacitated from doing the main duties of the job, or jobs, they were doing at the time of the injury or the start of the illness.
Deferred period
Policyholders can choose a deferred period of three, six or 12 months.
Zurich will not pay out if the cause of the claim results either directly or indirectly from
n HIV/Aids
n Living abroad
n War and civil commotion
Plan permits variations to sum assured other than guaranteed insurability options (GIOs)
Cover can be reduced at any time, but increases can only be made under a GIO.
GIO
The plan may include a GIO that enables policyholders to increase their cover, if they are 54 or younger, without giving Zurich any more details about their health or activities if they increase their mortgage or commercial loan. If the plan covers two people, the older person must be 54 or younger at the time the option is exercised and both have to agree in writing before the option can be used. The term of the plan will stay the same.
The maximum increase in relation to a residential mortgage is £150,000 or 100% of the CI cover at outset. The maximum in respect of commercial loans is £250,000, or 50% of the CI cover at outset.
Total amount the cover can increase
The GIO on this plan can be used more than once, but the total increase to the cover for all events is limited to:
n £250,000 or half the amount of CI cover at the start of the plan for commercial loan increases, whichever is the lower amount; or
n £150,000 or the amount of CI cover at the start of the plan for mortgage increases whichever is the lower amount. Zurich may increase these limits in the future.
Joint life separation
There is an option to split the plan on separation or divorce/annulment of a civil partnership.
Review underwriting terms
There is no facility to review underwriting terms after commencement.
Number of years to qualify as a non-smoker
The non-smoker time limit is 12 months. A non-smoker is someone who has not used tobacco products or nicotine substitutes in the previous 12 months.
Maximum free life cover period
The free cover period is 90 days after exchange of contracts in respect of a personal mortgage.
When does the free cover stop?
The free cover period stops as soon as any of the following events happen:
n The mortgage is completed.
n 90 days have elapsed since contracts were exchanged.
n The plan starts.
n The application for the plan is withdrawn.
Plan includes a counselling service
A counselling helpline is available for claimants and the bereaved.
Total number of CI conditions covered
31
Children's benefit
Child cover applies from the date each child turns three months and lasts until they reach age 18, as long as the plan is in force.
The most Zurich will pay for a child is half the level of CI cover at claim subject to a maximum of £25,000. Zurich will only pay one claim for each child but there is no limit to the number of children covered.
Total and permanent disability (TPD) of a child is also covered. In this context it means an irreversible level of disability which, in Zurich's reasonable opinion, means the child would be disabled from performing any occupation whatsoever if they were an adult.
Basis for inclusion of TPD
TPD is optionally available on an 'own occupation' basis and included automatically on an 'activities of daily living' basis.
Survival period for CI claims (days)
The survival period for claims is 14 days from diagnosis of the critical illness or undergoing surgery.
Number of exclusions applicable to CI cover
CI cover, children's CI cover, TPD and own occupation are excluded if the condition is caused as a result of:
n Alcohol or drug abuse
n Taking part in a criminal act
n The planholder inflicting a deliberate injury on the life assured
n Self-inflicted injury
n Terrorism
n War and civil commotion
n Unreasonable failure to follow medical advice
n Living abroad - the condition arises while the life assured is living abroad and they do not return to the UK or a specified country.
