Increasing Family and Personal Income Plan Critical Illness Cover or Critical Illness Extra
Pays out a monthly benefit with an option to commute to a lump sum in the event of death, earlier diagnosis of a terminal illness or meeting the definition of one of the named critical illnesses within the term of the plan.
The contract offers reviewable premiums.
- All business is sold as family protection.
- Where a lump sum is required to provide financial support to spouse, partner, registered civil partner or dependant in the event of death, terminal illness or critical illness. A commuted lump sum can be chosen at claim stage.
- Customers who do not have/enough cover in place.
Suitable if customers
- Want to take advice on the suitability of the product
- Require a monthly benefit.
- Need a decreasing sum to cover a mortgage in the event of death, terminal illness or critical illness and have dependants and are not willing to self-insure or do not have funds elsewhere.
- Have medical conditions that do not prevent provisions of cover and are happy to be underwritten.
- Can afford relevant monthly premiums for the chosen policy and are UK resident.
- Want their premiums to be reviewable.
Unsuitable if customers
- Wish to purchase direct without advice
- Want a product to pay a monthly benefit if unable to work for a period of time, unless they suffered one of our specified conditions.
- Do not need death, Terminal Illness and Critical Illness Cover or Critical Illness Extra without dependants and are willing to self-insure and have sufficient funds elsewhere.
- Have health conditions that may result in cover not being issued.
- Require a non-underwritten journey.
- Are unable to afford the premiums for the chosen policy and are not UK resident.
- Want their premiums to be guaranteed.
Amount of Cover
- No minimum monthly benefit. Driven by minimum premium.
- Maximum monthly benefit is £4,000 per month.
- The amount of cover increases in line with changes in the Retail Prices Index to help protect the cover against inflation.
- The minimum term allowed is 5 years.
- The maximum term allowed is 40 years.
- The minimum age to take out a policy is 18. It is possible for a life of another policy to be taken out on a 17 year old by an adult with insurable interest. This policy can then 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.
- The policy must end by their 70th birthday.
- Payable monthly or annually by Direct Debit.
Benefits automatically included
- For joint life policies, benefit is paid on the first critical illness claim or death, whichever occurs first.
- Policies can be put into trust.