What is waiver of premium?
If you have a long-term disability, after a pre-selected period of time your policy will stay in force without any further payment of your premiums, as long as you meet the specified definition of incapacity.
What are the definitions of incapacity?
- Own occupation - if you are unable to perform those duties that are normally needed to carry out your own occupation as a result of accident or sickness.
- Any suited occupation - if you are unable to carry out your own occupation or any others to which you are reasonably suited either by education, training or experience, as a result of sickness or accident.
- Activities of daily work - you are deemed incapacitated if you are unable to perform three or more of the 'activities of daily work' criteria or if you satisfy mental incapacity or mental ill-health definitions.
What is the renewal option?
Instead of choosing a fixed term for your policy, you can choose to renew it every five or ten years. If you do this, we won't require any medical evidence when you renew. This option is particularly useful when you need flexibility about how long cover is to last.
What is the indexation option?
You can choose to have your benefit amount increased yearly in line with the Retail Prices Index (RPI) to account for the effects of inflation.
What is total and permanent disability benefit?
This is an add-on benefit which will pay out if you are diagnosed as being totally and permanently disabled.
You can choose between three definitions of disability:
- being unable to work at your normal occupation
- being unable to carry out any occupation
- being unable to carry out some of the activities of everyday life
Please note that the first definition is not available on all occupations. You can find further details on this in our Definitions Guide, which is available from your financial adviser.
What is the life buyback option?
After we have paid a critical illness or permanent disability claim (please note this only applies to life cover with critical illness protection), your policy would normally have run its course. The life buyback option offers you the opportunity, within a year of us paying such a claim, to 'buy back' the same level of life cover as you had before.
Please note that if the critical illness in respect of which the claim was made falls within the definition of terminal illness, you can 't use this option.
What is included in critical illness protection?
The policy covers a specified list of critical illnesses and conditions, including most cancers, dementias, heart diseases, organ failures, strokes, loss of limbs and degenerative nerve diseases. However, the list is necessarily complex and so you should read it with our Definitions Guide.
What is the 'survival period'?
This is the 14 days between the diagnosis of critical illness and the day benefit becomes payable.
Are there factors which will stop the policy paying out?
Yes. These are known as exclusions, and they include areas such as drug abuse, failure to follow medical advice and the results of war or revolution. The particular exclusions which apply to any policy are detailed in the policy documents, and you should read these carefully.
What do I have to pay?
The premium payments. The times when these are due are set out in the policy documents. You can make payments monthly or yearly, but they must be made by direct debit.
Premiums can be either guaranteed (they stay constant throughout the period of payments), reviewable (they may be adjusted every five years) or current costed (they are reviewed every year). The type of premium you'll pay will depend on which benefits you choose when you set up the policy. For example, critical illness protection is not available on a guaranteed basis. You can find further details about the different types of premium in our key features document.
What other charges are there?
All of the administration costs are included in the premium. There are no other fees or charges to pay.
What if I stop paying premiums?
If you stop paying premiums, your protection stops. You'll no longer be covered for any benefits and we won't refund any premiums. If you subsequently want to restart your policy, there may be additional charges or conditions.
Are benefits taxable?
Under current regulations, no tax will have to be paid on any benefits we pay you. However, tax rules do change from time to time so you should get advice from a financial adviser.
Can I take out a policy then change my mind?
During the first 30 days of a policy, you have the right to cancel. If you do cancel the policy during this period, we'll refund all premiums paid.
Next Steps
If you would like more information about Personal Protection, you should talk to a financial adviser.
Further information... Who should I talk to?
Speak to your financial adviser to find out more. If you don't have an adviser, the IFA Promotion Service or the Society of Financial Advisers can help you find one.