With medical advances meaning that many serious illnesses are not proving fatal, they can still have a major impact on your life and on your ability to earn a living.
Critical illness with life cover could help reduce the financial impact of a critical illness by helping with practicalities such as helping to pay off your mortgage and helping to pay any bills, allowing you the time to recover.
Each month, you pay an amount for the period you’ve chosen to be covered for. Your monthly payment is known as a premium and the period you’re covered for is known as the term.
The policy will end if we pay out the benefit amount. The benefit amount is the cash sum that you’re covered for. If this amount has not been paid out by the end of the term, the policy will end and you’ll get nothing back. The policy has no cash-in value.
Also, if you don’t pay your premiums in time your cover will stop, your benefit will end, and you’ll get nothing back.
Full details on how critical illness with life works are given in the Policy Provisions.
You can choose to apply for benefits to cover your own life – this is a single person plan.
Or, you can apply for benefits with your partner to cover your individual protection needs in one plan with joint ownership – this is a two person plan.
If you take out a two person plan we’ll also ask you to give your consent to share all information relating to your plan, including details of each other’s policies.
Yes. Once your policy is set up you have the flexibility to apply to change the amount of cover at any time, increase or reduce your term, or add on benefits when it suits you. Some changes will lead to us carrying out further underwriting.
Yes. When you apply you can:
If you’ve applied for more than one benefit, you can choose different start dates for each one.
No. The policy has no cash-in value at any time. Also, if you don’t pay your premiums on time your cover will stop, your benefit will end and you’ll get nothing back.
If no additional trustees are appointed this can cause complications if a claim is made as there may be no surviving trustee to ensure the terms of the trust are carried out. This would cause delays in payments being made to the beneficiaries who will likely need the policy proceeds as soon as possible, to provide them with the financial stability that the protection policy was designed to give.
Where there are no surviving trustees to administer the trust this will mean:
Also, if your trust is set up to allow for trust proceeds to be paid to a wide range of beneficiaries at the discretion of the trustee(s) and according to circumstances, at least two trustees would normally be required to allow the policy proceeds to be distributed to the intended beneficiaries. There would be a delay in payment until the trust period expires or a new trustee is appointed.
Having no additional trustees can also cause problems if a sole trustee becomes incapable of acting during his or her lifetime (by reason of a mental incapacity). It'll then become impossible to administer the trust without the intervention of the court.
It’s easy to appoint additional trustees, you just need to print off and send us the completed Deed of Appointment of additional trustees form to allow the additional trustees to be added and ensure that there are no unnecessary complications if a claim occurs. Remember that your trustee needs to sign the form and it includes details of their duties and responsibilities.
There are notes in the left hand margin explaining what's required to help you complete the form. If you've any queries about how to complete this deed, please contact your Financial Adviser or your legal adviser.
The policy has no cash-in value at any time.
If you don’t pay your premiums on time your cover will stop, your benefit will end and you’ll get nothing back.
The policy will end if we pay out the benefit amount but if the benefit amount has not been paid out by the end of the selected term, the policy will end and you’ll get nothing back.
If the benefit is to cover a repayment mortgage, we will decrease the benefit amount each month assuming a fixed rate of interest of 10% a year. There may be insufficient funds to repay the loan if the interest rate on the mortgage exceeds 10% or the loan is increased or extended.