INCOME PROTECTION INSURANCE

When the unexpected happens, we know that what matters is peace of mind from a policy you can trust. Our Income Protection Options cover is straightforward, simple to arrange and individual to you, providing:

An income to help replace any loss of earnings due to ill health or accidental injury

An insurance policy that’s affordable and easy-to-arrange; helping to give peace of mind to you and your family

Continued benefit if you go back to work in a reduced capacity, with a reduced salary

Tax free payments under the current rules, although this might change in the future

Income Protection Options has no cash-in value at any time. It’s important that you continue to pay your premiums otherwise your policy will end and you will not be covered. Premiums are not payable when you’re receiving a benefit from this policy.

What is Income Protection Options?

Our Income Protection Options policy pays out if, during the policy term, you can’t work and suffer a loss of earnings due to illness or accidental injury.

You can choose:

●  the monthly benefit amount

●  when you want to start receiving benefit
●  how long you want to receive benefit for.

Can I apply for an Income Protection Options policy? You can apply if you’re:

●  a permanent resident of the UK, the Channel Islands, Isle of Man or Gibraltar

●  aged between 18 and 59

●  working either full time or part time and are either employed or self-employed.

You can only take out a policy to cover your own earnings.

How long does the policy last?

●  The policy can last between five and 52 years.

●  The policy term can be in full years or until you reach a specific age.

●  The policy cannot end before you turn 50.

●  The policy must end before you turn 71 or you reach your planned retirement date (whichever is earlier).

What do I need to do?

●  You need to give us medical information, details about your job (including earnings) and other personal circumstances as part of your application and if you make a claim. We use this information to decide what you’re covered for and how much you’ll pay for your policy.

●  You must answer all of our application questions completely, truthfully and accurately. If you don’t, we may amend or cancel your policy, or we may not pay a claim. If we need additional medical information, such as a report from your doctor, we’ll pay for it.

●  You need to tell us if any of the information you’ve given us changes between completing your application and us confirming when your policy will start.

●  You need to pay all your premiums (except when we’re paying you benefit).

●  You need to tell us when an illness or accidental injury has stopped you working.

●  You need to regularly review the cover you’ve got. If you don’t, it may be less than you need. Or, it may be more than your income/earnings justify so we’d have to reduce your benefit. If this happens, we won’t give you any of your premiums back.

What types of cover can I choose?

You can choose from two types of cover:

●  Full cover to term – This is a long term option. There’s no limit on the length of any claim or on the number of claims you can make.

●  Limited payment term – There’s no limit on the number of claims you can make, but once we’ve paid 24 monthly benefit payments, your policy will end.

Your premiums will stay the same throughout the term of your policy, as long as you:

●  keep the same level of cover

●  don’t select the increasing option.

What other benefits can I choose? Automatic increases to your benefit payments

If you choose the increasing cover option, your benefit amount will increase each year, even if you’re claiming. Your benefit will increase in line with the Retail Prices Index up to a maximum of 10%. However, you can choose to decline the increase at each policy anniversary.

What else is included on the policy?

Your Income Protection Options policy includes a range of additional benefits at no extra cost:

Waiver of premium

If we accept your claim, we’ll pay your premiums from the end of your deferred period to when we stop paying benefit. You should continue to pay premiums until we accept your claim. You need to start paying your premiums again when your claim ends to make sure your cover continues.

Back to work benefit

We’ll pay you a reduced benefit which takes into account any partial loss of earnings after you’ve returned to work.

We’ll pay it if you were in an occupation before incapacity and:

●  you’re in a different occupation because of your incapacity; or

●  you return to your occupation but the illness or injury that caused incapacity restricts what duties you can do or hours you can work; and

●  your earnings are reduced.

Hospital benefit

We’ll pay this if you’re hospitalised as a result of your incapacity for more than seven consecutive nights during your deferred period. We’ll pay £75 for each additional night you spend in hospital up to a maximum of 90 nights.

Death benefit

We’ll pay this if you die during the first year of your claim from the same accidental injury or illness. We’ll pay 12 times the monthly benefit, minus the amount we’ve already paid.

Retirement benefit

We’ll pay this if you’ve received monthly benefit for incapacity in the 12 months before your policy ends. We’ll make a single payment of 3 times the last monthly benefit paid.

Your income protection policy may also include the following additional benefits which are subject to eligibility:

Sick pay solutions for NHS doctors and surgeons

If you’re a doctor or surgeon employed by the NHS and registered with the General Medical Council, you’re eligible for sick pay solutions. This means we’ll pay benefit when your sick pay from the NHS stops, or reduces. This means you can set up your policy for the deferred period(s) you will need when you reach the maximum entitlement of sick pay from the NHS.

If you would like more information on Income Protection Insurance, please call us and we will be happy to help.