Important Information

Life Insurance

Important points to consider

• All Life Insurance policies have exclusions – when the policy won’t pay out. For example, most do not cover death due to alcohol or drug abuse. You might not be covered while taking part in adventurous sports. If your health is poor when the policy starts, some causes of death might be excluded or you might be refused cover altogether.
• How flexible is the contract? Can you reduce or increase cover easily as your circumstances change? Are there extra charges for doing this? Does cover stop immediately if you miss a payment or is there a period of grace?
• By paying extra, you can usually include a waiver of premium. It pays the premiums if you can’t work because of a long-term illness so that your cover is not interrupted.
• If you want to change insurer, check the level of premiums for the new contract before switching (premiums may have gone up because of older age or because you have developed medical conditions). Also check the new level of cover compared to the previous one. Different benefits may be available, and different exclusions may be applied, for example you may not be covered for medical conditions that have developed before the switch even if these were covered under the previous contract. If you do decide to change, make sure you do not cancel your original cover until you are fully covered by the new contract.
• The policy can be set up under trust. This means that in the event of death, proceeds of the policy are paid directly to dependant(s) of your choice. Provided a trust is set up properly, there may be benefits to doing this. However, using a trust may not be suitable for everyone and because of the complexities we recommend you seek financial and legal advice

Critical Illness

Important Points to consider

• Critical illness insurance pays out if you are diagnosed as suffering from one of the specified illnesses.
• Policy summaries will often set out a list of illnesses covered, but this is only a guide and full details will be in the policy document. This will also set out the criteria that have to be met before the insurer will pay a claim, including defining the level of severity of the illness.
• As an example, in the case of cancer, not all cancers or stages of cancer are covered. And for heart attacks, the insurer will need to have medical evidence of the severity of the condition before paying a claim. So make sure you check which illnesses are covered.
• It does not cover simply any sickness that affects your ability to work – it is specific about which illnesses are covered.
• Some insurers exclude all pre-existing conditions but others will decide on the basis of your personal medical history.
• It differs to other types of protection insurance such as income protection or payment protection, so make sure you understand what it does and whether it is right for you.
• Before you take out the cover, we will give you either a Policy Summary or Key Features document. This will set out the key features and benefits, as well as any significant or unusual exclusions or limitations. If you have any queries about these you should ask us to explain the cover in more detail. This will help you make an informed decision on whether to take out the cover.
• Many insurers now provide a plain English guide to the illnesses covered. This is provided when a quotation is given
  If the insurer imposes any other conditions, perhaps because of your own or family medical history, you should be told what they are before you take out the policy.
• Detailed policy terms and conditions will be provided in the policy document the insurer will send you after you take out the cover – make sure you read it so that you know what you’re covered for.