Protection plans are designed to help protect against the impact of death, terminal illness or critical illness (if chosen) on you and your family. Your policy could be used to help pay off your outstanding mortgage or to help protect your family’s lifestyle and everyday living expenses.
Your policy is designed to cover you:
• If you die before the end of your policy.
• If you take out a plan that includes Critical Illness Cover, and you are diagnosed with one of the critical illnesses we cover before the end of your policy.
• If you are diagnosed as being terminally ill, and in the opinion of your hospital consultant and our medical officer, the illness is expected to lead to death within 12 months.
For Family and Mortgage Protection Plans, we’ll pay out a lump sum in full once. After this happens, your policy will end and you’ll no longer have any cover. You can decide if you want your policy to cover one or two people (Joint Life Cover). For Joint Life Cover, we’ll only pay the lump sum out once. This will be when the first person dies or has a valid claim before the end of their policy. We have a replacement cover option which could allow the other person covered to take out a new single life plan, ensuring they still have some protection in place.
If you are taking out a mortgage protection plan to help pay off an outstanding mortgage, you will need to choose between Level or Decreasing Cover.
• Level Cover provides the same lump sum throughout the length of your policy.
• For Decreasing Cover, the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
Your premiums will remain the same during the length of your policy unless you make any changes. If you choose Decreasing Cover, your amount of cover for Terminal Illness Cover and/or Critical Illness Cover (if chosen) will also decrease. You need to ensure that your amount of cover matches your outstanding mortgage. Your policy may not completely pay off your outstanding mortgage, if you:
• Change the mortgage you have in any way and you don’t adjust your cover or length of policy to match your new arrangements.
• Choose Decreasing Cover and the interest rate on your mortgage becomes higher than the rate applied to your policy
We’ll pay out 25% of your amount of cover up to maximum of £25,000. If decreasing cover is chosen we’ll pay 25% of the decreasing amount up to a maximum of £25,000. These payments are in addition to your main policy. Your amount of cover and premiums will not be affected if we make an additional payment to you and we will still pay out in case of terminal illness, critical illness or death.
Child Accident Hospitalisation Benefit –pays £5,000 if a relevant child* is admitted to hospital with physical injuries for a minimum of 28 consecutive days immediately following an accident.
Child Funeral Benefit – contributes £4,000 towards the funeral of a relevant child*.
Childcare Benefit – if we have paid a claim for Critical Illness under this policy, and you have a natural child, legally adopted child or stepchild under 5 years old, we will pay up to £1,000 towards childcare with a registered childminder.
Family Accommodation Benefit – for every night a relevant child* spends in hospital, in the three months immediately following diagnosis of one of the critical illnesses covered, we will pay £100 per night up to a maximum of £1,000.
These payments are in addition to your main policy. Your amount of cover and premiums will not be affected if we make an additional payment to you.