Group Income Protection

Document Sample
Group Income Protection Powered By Docstoc
					Group Critical Illness Adviser Report For [Company name] A client of [Adviser name]


1. About Unum 2. What does Unum’s Group Critical Illness provide? 3. Illustration of Costs for [Company Name] 4. Commission 5. Next steps



About Unum

Unum is one of the UK’s leading providers of group risk insurance with over 35 years of experience. Our life insurance, critical illness and income protection products enable our customers to purchase complementary protection solutions that together make up a comprehensive protection package. In 2008 Unum employed almost 1000 people in the UK, operating from multiple sites with administration premises in Dorking, Bristol and Basingstoke as well as regional offices in Dorking, London, Birmingham, Manchester and Glasgow. At the end of 2007, we protected over 40,000 lives through over 700 schemes and had paid total benefit claims of £8 million. Financial Ratings - Rating of A- (Strong) from Standard and Poors - Rating of A- (Excellent) from AM Best Unum Product Awards: We are proud of the awards we have won over the years. From industry awards to community and employee awards, we recognise the important role we play in many arenas. Industry awards and accreditation we have received in the UK include: Best Group Critical Illness Provider  Health Insurance – 2008

British Insurance Awards  Underwriter of the Year - 2008

Industry Accreditation ISO 9001:2000 certification Unum is proud to hold ISO certification within our Claims, Group Medical Underwriting and Customer Feedback departments.



What does Unum's Group Critical Illness cover provide?

Unum is the leading provider of Group Critical Illness Insurance in the UK. We can help employers arrange a Group Critical Illness insurance policy which offers employers and employees alike the peace of mind that comes from knowing that, should a Critical Illness Event occur, a lump sum payment will be made to help the employee during these difficult times. Key Benefits for Employers and Employees Employers:     improves likelihood of employee returning to work mitigates the cost of ex-gratia payments enhances employee loyalty and retention helps minimise the pressure on the employer around how they provide financial support for employees on long-term sick leave

Employees:    provides financial resources to pay for private medical treatment and/ or physiotherapy to facilitate recovery compensation for time away from work provides a means of support for employee and dependants during a critical time

Unum’s Critical Illness policy covers an extensive range of Critical Illness Events to give employers and employees comprehensive protection. The 13 most common Critical Illness Events are covered under Base Cover and a further 19 Events are covered under Extra Cover. The benefit is paid out direct to the employee tax-free after a 14 day survival period, whereas most other insurers require a 28 or 30 day survival period before payment is made. The Automatic Entry Level is now £500,000 which is also the maximum benefit amount payable to an individual. As pre-existing conditions will be excluded, applicants will not need to be medically underwritten prior to acceptance. Critical Illness Events covered under Unum’s Base Cover Alzheimer’s Disease Cancer Coronary Artery Bypass Surgery Creutzfeldt-Jakob Disease Heart Attack Hodgkin’s Disease Kidney Failure Major Organ Transplant Motor Neurone Disease Multiple Sclerosis


Parkinson’s Disease Pre-senile Dementia Stroke Critical Illness Events covered under Unum’s Extra Cover All of the Base Cover conditions plus: Aorta Graft Surgery Balloon Angioplasty Balloon Valvuloplasty Benign Brain Tumour Blindness Coma Chronic Lung Disease, including Emphysema Deafness Heart Valve Replacement or Repair HIV Infection/AIDS (in certain instances – please see Technical Guide UP845 for further information) Loss of Limbs Loss of Speech Open Heart Surgery Paralysis/Paraplegia Permanent Total Disability (PTD) Pulmonary Artery Surgery Rheumatoid Arthritis Severe Head Injuries Third Degree Burns Claims Information In 2007, Unum paid out £6.3 million in Group Critical Illness claims. Unum’s average claims payout is around £75,000. During 2007 and 2008:* • 62% of Group Critical Illness claims received were for cancer; • 13% were for heart attack; • 57% of claims received were for male employees; • The average age for male claimants was 47; the average age for females was 44; • I n females, 82% of claims were due to cancer, in males it was 53%; • 27% of claims in males were due to heart attack and other cardiac-related claims. The figure was 0% for women. * As at November 2008



Illustration of Costs

Base/Extra Cover Critical Illness Policy

This illustration has been produced on the following benefit basis: Benefit Basis: Terminal Age: Temporary Absence: Definition of PTD 4 x salary 65 Standard Current Occupation Unable to perform the material and substantial duties of their own occupation for a continuous period of 6 months and will remain unable to do so for the remainder of their life

Please note the caveats detailed on the illustration, answers to the Risk and Price caveats may affect the cost and are required before assuming risk.



Below is a breakdown on the potential commission based on the previous illustration. This has been calculated using a standard commission rate of 12% (rates available from 0 to 20%) and a projected increase in salary roll of 5% Extra Cover Policy
Quoted Annual Premium £15,432 Timeline Year 1 Year 2 Year 3 Year 4 Year 5 Premium Based on a 5% Salary Roll Increase £15,432 £16,204 £17,014 £17,865 £18,758 Commission @ 12% £1,852 £1,944 £2,042 £2,144 £2,251


Next Steps

To discuss this document in more detail and to learn more about the range of protection solutions Unum can offer, please contact us on the details below:

[Enter Sales Consultant details here]