Document Sample
life-cover-key-features Powered By Docstoc
					Key Features
                      of Life Cover
  Important information you need to read

              Protection for Life
    The Financial Services Authority is the independent financial services regulator. It requires
    us, Scottish Widows, to give you this important information to help you decide whether
    our Life Cover benefit is right for you. You should read this document carefully so that
    you understand what you are buying, and then keep it safe for future reference.

    Life Cover is a type of benefit available under our Protection for Life plan. For each benefit
    you choose under the plan, we’ll set up a policy that is legally separate from any others in
    the plan with its own key features and policy provisions.

    These Key Features should be read with the enclosed quotation.

    Its aims                                                     Risks
    •   To pay out a cash sum if, during the benefit term,       •   There’s no cash-in value at any time.
        –   you die, or                                          •   We might not pay out in certain circumstances –
                                                                     see “What will stop this benefit paying out?”
        –   you are diagnosed with a terminal illness.
                                                                     for more details.
    The cash sum (“benefit amount”) can be level or
                                                                 •   If you don’t pay your premiums on time, this
    decreasing over the benefit term.
                                                                     benefit will stop and you’ll get nothing back.

    Your commitment                                              •   If you choose a decreasing benefit amount to help
                                                                     cover a mortgage or loan, what we pay out may
    •   To pay monthly premiums for this benefit                     not be enough if:
        by Direct Debit until the end of its term.
        Further details are provided in the quotation.               –   the interest rate on your mortgage or loan goes
                                                                         above the interest rate we’ve assumed for your
    •   To provide us with all relevant information, including           benefit, or
        medical details, to the best of your knowledge and
        belief. If you don’t do this, we might not pay out.          –   your mortgage or loan is increased or extended.

    •   To tell us if there is any change to your personal       •   if your circumstances change, the benefit amount
        health, family history, occupation, participation in         you’ve chosen may not be sufficient to meet your
        any hazardous leisure activities, travel or residence        needs. You should regularly review your benefit
        between completing the application process and               amount.
        the start of this benefit. If you don’t do this, we
        might not pay out.

Questions & Answers
What are the options available?
The table below sets out the key points of the benefit and the various options available.

                               Level Life Cover                               Decreasing Life Cover

 What is covered by            Life                                           Life
 this benefit?                 Terminal illness                               Terminal illness

 Youngest age you can          18                                             18
 start this benefit            (19 next birthday)                             (19 next birthday)

 Oldest age you can            79                                             79
 start this benefit            (80 next birthday)                             (80 next birthday)

 Oldest age when this          89                                             89
 benefit will end              (90 next birthday)                             (90 next birthday

 Shortest time for which       1 year                                         5 years
 you can set up this benefit

 Maximum benefit amount        £5,000,000*                                    £5,000,000*

 Minimum benefit amount        £2,000                                         £2,000
                                                                                                                             * The maximum sum assured
                                                                                                                               limit applies across all Life
 Is joint ownership of this    Yes                                            Yes                                              Cover selected under
 benefit possible?                                                                                                             Protection for Life, any other
                                                                                                                               Life or Pension term assurance
                                                                                                                               policies sold through Lloyds
 Can this benefit be set       No                                             No
                                                                                                                               Banking Group, and any other
 up on a key person or life                                                                                                    company.
 of another?                                                                                                                 ** Mortgage Free Cover might
                                                                                                                                apply to you when you have
                                                                                                                                applied for Life Cover in
 Can this benefit be written   Yes                                            Yes
                                                                                                                                relation to a mortgage. You
 under trust?                                                                                                                   can see its terms and
                                                                                                                                conditions in the Mortgage
                                                                                                                                Free Cover leaflet. You can ask
 Is Mortgage Free Cover        Yes                                            Yes                                               us for a leaflet if you don’t
 available?                    (depending on your circumstances) **           (depending on your circumstances) **              already have one.
                                                                                                                             ** 30 days’ Free Accidental
                                                                                                                                Death Cover might apply to
 Is 30 days’ Free Accidental   Yes                                            Yes                                               you while we are considering
 Death Cover available?        (depending on your circumstances) ***          (depending on your circumstances) ***             your application for Life Cover.
                                                                                                                                You can see its terms and
                                                                                                                                conditions in the 30 days’
 Is Premium Protection         Yes                                            Yes                                               Free Accidental Death Cover
                                                                                                                                leaflet. You can ask us for a
 available?                    (to max age 65, ending before 66th birthday)   (to max age 65, ending before 66th birthday)
                                                                                                                                leaflet if you don’t already
                                                                                                                                have one.

    How does a decreasing benefit                               •   In general, we won’t pay a claim if we don’t receive
                                                                    the proof that we need about the events resulting
    amount work?                                                    in the claim. We might not pay a claim if we don’t
    •   If you take out the benefit to cover a repayment            have authorisation to obtain medical information
        mortgage or loan, you can usually set the initial           about you.
        benefit amount to be the same amount as your            Please see provisions 4 of your policy provisions for
        mortgage or loan. We’ll then decrease the benefit       more details.
        amount each month in line with the amount
        outstanding under a standard repayment mortgage,        We may add further limits or exclusions to your policy.
        assuming a fixed rate of interest of 10% a year or      If we do, we’ll tell you about them before you make
        at the rate shown in your quotation or policy           your decision to go ahead with the benefit.
        schedule, if different.
                                                                What other options can I have with
    How flexible is this benefit?                               this benefit?
    At any time you can ask us to:                              Premium Protection
    •   top-up or reduce your benefit amount,                   Before this benefit starts you can choose, at an extra
                                                                cost, to include Premium Protection for it. This option
    •   increase or reduce your term, and/or
                                                                means that after 26 weeks we’ll start to pay your
    •   add or remove a policy owner.                           premiums for this benefit if:
    We may need more information about you, such as             •   you’re in paid work and you suffer a disability
    further medical details. If we agree to your request,           meaning due to sickness or accident you are
    we’ll tell you how it affects your benefit – for example,       totally unable to follow:
    your premiums may change.
                                                                    –    the occupation from which you last derived any
                                                                         earnings before the start of disability (if there
    When do we pay out on terminal                                       was more than one it will be that from which
    illness?                                                             the largest part of those earnings was derived),
    •   If you’ve been diagnosed with an illness which is
        expected to cause your death within 12 months               –    any other occupation for which we reasonably
        and before the end of the term. You’ll need to tell              consider you suited taking into account your
        us about the diagnosis at least 12 months before                 education, training and experience,
        the end of the term.
                                                                    and you are not doing any other occupation
                                                                    for payment or profit.
    What will stop this benefit
    paying out?
                                                                •   you’re working less than 16 hours a week, you’re
    •   There are some reasons that will stop us paying out         not self-employed and you suffer a disability which;
        on claims:
                                                                    –    prevents you from doing, even with the use of
    •   We might not pay out, if you don’t provide us with               appropriate assistive devices, at least two out of
        all relevant information or tell us about any changes            six activities of daily work (“ADWs”) without the
        before the start of your benefit as described in the             assistance of another person, or
        ‘Your commitment’ section.
                                                                    –    causes mental failure.
    •   We won’t pay a terminal illness claim if:
        –   you’re expected to live for more than
            12 months, or
        –   you don’t tell us about the illness at least
            12 months before the end of the benefit term.

The six ADWs are:                                             •   The initial premium payable for this benefit is shown
    (i) Hearing                                                   on the accompanying quotation. If you have other
                                                                  benefits in your plan, it will also show a discount for
    (ii) Lifting
                                                                  having more than one benefit.
    (iii) Speech
                                                              •   The premiums for this benefit and any others in
    (iv) Using a pen, pencil or keyboard                          your plan, are payable monthly by Direct Debit.

    (v) Vision                                                •   If we pay out under this benefit, your premiums
                                                                  for it will stop, it will end and nothing further will
    (vi) Walking
                                                                  be paid out.
We’ll continue paying the premiums for you until:
•   you’re able to return to work, or                         What are the charges?
•   you reach the age of 66, or                               •   Our charges cover the cost of commission,
                                                                  expenses, profit and any other adjustments.
•   the benefit ends,                                             They are included in the total cost you pay
whichever is sooner.                                              for the benefit, detailed in the quotation.

You need to tell us about your sickness or accident
within 13 weeks of it starting or happening. Please see       What about tax?
provision 5 of the policy provisions for further details of   •    Under current tax rules, any cash sum paid out
Premium Protection including the exclusions that apply            under the benefit will be free of personal income
and what we mean by “occupation”, “mental failure”                tax and capital gains tax.
and the six ADWs.
                                                              •   You may want to consider putting this benefit in
We may add further limits or exclusions for this option.          trust which could help if you die, to reduce any
If we do, we’ll tell you about them before you make               potential inheritance tax and help to get the cash
your decision to go ahead with this benefit.                      sum to the right people at the right time. We can
                                                                  send you our standard trust form for this and you
What do I have to pay?                                            should also consider speaking to your solicitor if
                                                                  your adviser is unable to give guidance on trusts.
•   The actual premiums you pay for this benefit will             Please note: you would not normally put a policy in
    depend on, for example:                                       trust if you owned it jointly with someone else.
    –   the amount, basis and term of cover                       The reason for this is because neither of you would
        you choose,                                               be able to receive the death benefit from the plan in
                                                                  the event of a claim.
    –   your age and sex,
                                                              •   Tax rules may change in the future.
    –   your health,
    –   whether or not you smoke or use nicotine              Can I change my mind?
        replacements, and
                                                              •   You can change your mind about starting
    –   how many other benefits you have in your                  this benefit within 30 days of receiving your
        Protection for Life plan.                                 cancellation notice for it. If you do, you’ll get
                                                                  back any money you have paid for it.
                                                              •   If you don’t cancel your benefit within the
                                                                  30 day period, it will continue until the end
                                                                  of its term.

    How to contact us                                         Other information
    If you’ve any questions or any changes you want to
    make to this benefit or your plan, please contact us.     How to complain
    You can phone us, send us a fax, or write to us.          If you ever need to complain, please contact us.
                                                              If you’re not satisfied with our response, you can
    ¤ Call us on: 0131 655 6000 during the following times:   complain to:
                     Monday to Friday 8.00am – 6.00pm                       The Financial Ombudsman Service
                                                                            South Quay Plaza
                     Saturday 9.00am – 12.30pm
                                                                            183 Marsh Wall
    Fax number:      0131 662 4053                                          London
                                                                            E14 9SR
                                                              Tel:          0845 080 1800
    Office address: Scottish Widows plc
                    15 Dalkeith Road                          Email:
                    EH16 5BU
                                                              •      Complaining to the Ombudsman won’t affect
    •   We’ll communicate with you in English.
                                                                     your legal rights.

How to claim                                             Law
You can notify us of a claim in writing at the address   •   For legal purposes the law of England and Wales,
shown or by phone;                                           Scotland or Northern Ireland will apply, according
•   For terminal illness claims call 0845 601 4839           to where you reside when you take out your benefit.

•   For life cover claims call 0845 601 4179             •   This information represents Scottish Widows’
                                                             interpretation of the law and HM Revenue and
•   For premium protection claims call 0845 845 0033         Customs practices as at date of publication.
•   We may record and monitor calls to help us               Changes to tax rules and other laws may affect
    to improve our service.                                  your contract terms.

Terms and Conditions                                     Compensation
                                                         •   We’re covered by the Financial Services
•   These Key Features give a summary of
                                                             Compensation Scheme. It’ll apply if we
    Scottish Widows Life Cover benefit as part of
                                                             become insolvent and can’t meet our obligations.
    Protection for Life plan. Further details of the
                                                             Information about compensation arrangements is
    benefit, and terms and conditions are given in
                                                             available from the Financial Services Compensation
    product literature, and policy provisions which
                                                             Scheme, who can be contacted on 020 7892 7300
    are available from us.
                                                             or via their website at
•   We’ve the right to change some of the terms and
    conditions at any time. We’ll write and explain if
    this affects your benefit.

As part of the Lloyds Banking Group, Scottish Widows is proud to be an Official Provider of the London 2012 Olympic and Paralympic Games.
Scottish Widows plc. Registered in Scotland No. 199549. Registered Office in the United Kingdom at 69 Morrison Street, Edinburgh EH3 8YF. Telephone: 0131 655 6000.
Scottish Widows plc is authorised and regulated by the Financial Services Authority. Our FSA Register number is 191517.
SW57324 11/08