Increasing Family and Personal Income Plan with Critical Illness Cover or Critical Illness Extra

Pays out a lump sum or monthly benefit 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 specified 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.

This contract offers reviewable premiums only.

Target market

Family protection

All business is sold as family protection.

Where a monthly benefit 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.

Suitable if customers

  • Want the option for the level of cover to increase over the term of the policy.
  • Require a monthly benefit in the event of death, or terminal illness (if life expectancy is less than 12 months).
  • Need a decreasing sum to help protect a family 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.  
  • Are UK resident and can afford monthly premiums for the chosen policy and can afford annual premium increases.

Unsuitable if customers

  • Do not want the option for the level of cover to increase over the term of the policy.
  • Do not 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 willing to self-insure or have funds elsewhere.
  • Want a product to pay a benefit if unable to work for a period of time due to accident or injury (IPB).
  • Have health conditions that may result in cover not being issued.
  • Require a non-underwritten journey.
  • Are unable to afford monthly premiums for cover or cannot afford to increase their premiums annually and who are not UK resident.

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

  • Guaranteed or 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.