Increasing Family and Personal Income Plan

A plan designed to protect the sum assured against inflation, financially protecting the life assured and their family. It pays out a monthly benefit on death or diagnosis of a terminal illness of the life assured during the term of the plan. The amount of cover increases each year to a maximum of 10%, a commuted lump sum can be chosen at claim. 

Premiums are guaranteed. 
 

Target market

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 or becoming terminally ill. A commuted lump sum can be chosen at claim stage.

Suitable if customers

  • Want the option to increase the level of cover 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 sum to help protect family needs in the event of death, or terminal 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.
  • Are happy to be underwritten and can afford relevant monthly premiums for cover and can afford annual premium increases.
  • Aare UK resident. 

Unsuitable if customers

  • Do not want the option to increase the level of cover over the term of the policy.
  • Need a decreasing sum to cover a mortgage in the event of death or terminal illness and have no dependants, and are willing to self-insure or have sufficient 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 £10,000 per month.
  • The amount of cover increases in line with changes in the Retail Price 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 or another policy to be taken out 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.
  • The policy must end by their 70th birthday.

Premiums

  • Guaranteed
  • Payable monthly or annually by Direct Debit.

Options available

Benefits automatically included

Other information

  • For joint life policies, benefit is paid on the first death.