There are several reasons why life insurance may be important to you. If you die or are diagnosed with a terminal illness, it can help:
It depends on your personal circumstances. Some things you may want to consider are:
See cover options for further information.
Yes, you can take out life insurance with critical illness with life cover. Critical illness with life cover can provide a cash sum on death or on diagnosis of a terminal illness or specified critical illness within the policy term.
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.
With a two person plan, each of you applies for individual benefits under one Protection for Life plan. There is one direct debit, one policy fee and the flexibility to apply to change your plan or your benefits as your needs change. You can also choose to jointly own each other’s policies.
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.
Life cover provides cover for a specific term that you choose at the start of the policy. Lifetime cover lasts for the whole of your life.
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.