Increasing Critical Illness Extra

A plan designed to protect the sum assured against inflation, financially protecting the life assured. It pays out a lump sum in the event of death, earlier diagnosis of a terminal illness (if life expectancy is less than 12 months) or meeting the definition of one of the named critical illnesses within the term of the plan. The amount of cover increases each year to a maximum of 10%.

This contract offers reviewable premiums only.

Increasing plans will increase in line with the changes in the Retail Price Index (RPI) subject to a maximum of 10%. The premium increases in line with the change in the RPI multiplied by 1.5 subject to a maximum increase of 15% per annum. The RPI provides an indication of inflation on a monthly basis. The RPI measures and tracks the average change in the purchase price of goods and services such as housing expenses and mortgage interest payments. If the changes to the RPI are 1% or less, then the premium and amount of cover will stay the same until the next review.

Amount of Cover

  • No minimum sum assured. Driven by minimum premium.
  • Maximum sum assured:
    £3 million is Specific Work Tasks definition under TPD applies, or
    £2 million if Own Occupation definition under TPD applies.

Term

  • The minimum term allowed is 5 years (2 years if Life Insurance with Critical Illness Cover or Critical Illness Extra is chosen).
  • The maximum term allowed is 40 years.

Age restrictions

  • The minimum age to take out a policy is 18. It is possible for a life of another policy to be taken on a 17 year old by an adult with insurable interest. This policy can then be placed in an Absolute trust with the 17 year old as the beneficiary.
  • The minimum age at the end of the policy is 29.
  • The maximum age for buying a policy is 64 (or 67 if Life Insurance with Critical Illness Cover or Critical Illness Extra is chosen).
  • The policy must end by their 70th birthday.

Premiums

  • Reviewable.
  • Payable monthly or annually by Direct Debit.

Options available

Benefits automatically included

If the policy is mortgage related, then the following are also included

Other information

  • For joint life policies, benefit is paid on the first critical illness claim or death, whichever occurs first.