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.

If your clients choose Critical Illness Extra, they will also be covered for the illnesses under Critical Illness Cover.

The contract offers reviewable premiums.

Target market

Family protection

  • 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.

Term

  • The minimum term allowed is 5 years.
  • 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 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.

Premiums

  • Reviewable
  • Payable monthly or annually by Direct Debit.

Benefits automatically included

Other information

  • For joint life policies, benefit is paid on the first critical illness claim or death, whichever occurs first.
  • Policies can be put into trust.