Terminal Illness Cover
Terminal Illness Cover is automatically included and is payable if the life assured has a definite diagnosis by the attending Consultant of an illness that satisfies both of the following:
- The illness either has no known cure or has progressed to the point where it cannot be cured; and
- In the opinion of the attending Consultant, the illness is expected to lead to death within 12 months.
Once the benefit amount has been paid Life Cover will end and no more premiums will be collected.
Terminal illness will no longer apply if the person covered takes ownership of the relevant life policy, as it will no longer be held in trust.
Free Accidental Death Cover
Free Accidental Death Cover might apply to the employee while we are considering the application. Full details regarding Free Accidental Death Cover, including eligibility and exclusions, please see our leaflet.
Guaranteed Insurability Option (GIO)
If the employee’s circumstances change as a result of any of the events listed below, they can increase the sum assured without the need for further medical evidence.
- Marriage/Civil partnership
- Divorce/Dissolution of a civil partnership
- Birth of a child, adoption or becoming a legal guardian
- Mortgage increase
- Promotion or salary increase
For full details regarding Guaranteed Insurability Options including eligibility, restrictions and limits please see our Policy Provisions.
If the employee stops working for the employer there are three options available:
- Their new employer can continue with the policy (with the same sum assured premium and term), without the need for further medical evidence or underwriting. The previous employer should then resign as trustee and the new employer be appointed as a trustee
- The policy can continue in trust with the employee paying the premiums themselves without the need for further medical evidence or underwriting. Terminal Illness cover will no longer apply if the person covered chooses this option. If the policy is to be assigned to the employee, careful consideration should be given to the tax implications of doing so by consultation with their local tax office
- The policy can be cancelled, the cover will stop and no further premiums would be taken.
For full details regarding the continuation of Relevant Life Cover please see our Key Features.
Scottish Widows Care
Our plans offer your clients a range of support services as well as the financial peace of mind that protection insurance gives. We work with an independent care organisation, RedArc, to give your clients and their families the practical advice and emotional support they’ll need through difficult and traumatic times in their lives.
RedArc nurse advisers can also work with businesses to offer support to co-workers in the event of the death of a key employee; advise a business on how to support a critically ill employee who may choose to work through treatment; or help a key person return to work following recovery from a critical illness.
For more information please see our Care section.