1 INNOVATIVE 5-STAR SERIOUS ILLNESS COVER FROM VITALITYLIFE VITALITY.CO.UK/LIFE
2 YOU RE UP TO TWICE 1 AS LIKELY TO GET A PAYOUT FROM OUR SERIOUS ILLNESS COVER THAN YOU ARE FROM A TYPICAL CRITICAL ILLNESS POLICY
3 WE COVER ALL HEART ATTACKS AND ALL STROKES. OUR COMPREHENSIVE SERIOUS ILLNESS COVER ALSO COVERS MORE CANCERS THAN ANY OTHER INSURER IN THE UK 2. WHAT SERIOUS ILLNESS COVER DOES Our award-winning Serious Illness Cover helps protect you from the financial impact that a serious illness can have on your life. You can choose between our Primary Serious Illness Cover which covers 102 conditions and our Comprehensive Serious Illness Cover, which covers 166 conditions. If you re diagnosed with one of the conditions we cover, we pay you a cash lump sum. The amount we pay you is based on the severity of your condition. HOW SERIOUS ILLNESS COVER WORKS For most conditions, a typical critical illness policy would give you a payout for your full cover amount, or nothing at all. This can leave you with nothing to help you cope with an illness that s having an impact on your life. We pay out differently. We give you a percentage of your cover amount depending on how severe your condition is. This means we re able to pay out on a wider range of illnesses - not just the debilitating or life-threatening ones covered by typical critical illness policies. If you make a claim for a condition that pays out part of your cover amount, we keep covering you for the remaining amount. So if your condition gets worse, or you re diagnosed with a more severe condition, you can claim again. You can do this until you ve used up your whole cover amount. WHY YOU RE MORE LIKELY TO GET A PAYOUT WITH OUR SERIOUS ILLNESS COVER We cover more conditions than other insurers. We also cover earlier stages of certain conditions - in some cases, we make partial payouts when you re diagnosed, rather than waiting until you have surgery or develop permanent symptoms. Together, these things mean you are more likely to get a pay out with our cover, than with a typical critical illness policy. SOURCES 1. Hannover Re UK Life Branch August 2013 Estimates are based on Hannover Re UK Life Branch s interpretation of the general population incidence rates and their estimated view of future trends. Incidence rates for the entire population may be different to those lives that take out life insurance products. The typical critical illness product is a comprehensive one and covers most conditions seen in the market. VitalityLife estimates are based on the VitalityLife Plan with Comprehensive Serious Illness Cover. Estimates are based on the likelihood of making a claim before age VitalityLife research
4 OUR SERIOUS ILLNESS COVER Covers you for more conditions than any other insurer Covers you for a number of less severe and early stage conditions that other insurers don t cover Pays out an amount based on how severe your condition is, so you could get a payout earlier and when you need it Gives you the chance to claim again if you receive a payout for less than your full cover amount Covers all heart attacks and all strokes Our Comprehensive Serious Illness Cover also covers you for more cancers than any other insurer in the UK 4
5 OF ALL THE COVERS AVAILABLE SERIOUS ILLNESS COVER MAKES THE MOST SENSE, IT HAS THE WIDEST BASE AND IT HAS SEVERITY AT IT S HEART DR. JOHN DELFOSSE GP AND INSURANCE MEDICINE SPECIALIST SOURCE: 1. Munich Re 5
6 WHY YOU RE UP TO TWICE 1 AS LIKELY TO GET A PAYOUT FROM US THAN FROM A TYPICAL CRITICAL ILLNESS POLICY WE COVER MORE ILLNESSES THAN A TYPICAL CRITICAL ILLNESS POLICY Some people are worried that their insurer only covers them for certain conditions, and that they might not get a payout if they get ill. A typical critical illness policy only covers you for around 40 conditions 2. With our Primary Serious Illness Cover, you would be covered for nearly twice as many conditions. And if you chose our Comprehensive Serious Illness Cover, you d be covered for four times as many. So, if something happens to you, it s more likely that you ll be able to make a claim with our cover. The amount we would pay depends on the severity of your condition. WE COVER CONDITIONS WHEN THEY RE LESS SEVERE, SO YOU CAN GET THE HELP YOU NEED, WHEN YOU NEED IT Typical critical illness policies would pay out if you had a severe condition for example, if you lost your sight in both eyes. We d pay out in these circumstances too. But we understand that it s not just the most severe form of a condition that affects people s lives. So we also pay out a percentage of your cover amount for things that aren t as severe. For example, with our Comprehensive Serious Illness Cover, we would pay out 15% of your cover amount if you lost sight in one eye. Most critical illness policies wouldn t do this. This means that if you had 120,000 of Comprehensive Serious Illness Cover, and went blind in one eye, we d pay you 18,000. And you d still have 102,000 of cover left. So if your condition got worse, or you were diagnosed with a more severe condition, you could claim again. You could do this until you d used up your whole cover amount.
7 YOU COULD CLAIM MORE THAN ONCE If you make a successful claim, most insurers will pay out 100% of the cover amount and then stop your policy. If your policy included Life Cover, this could be reduced - or stop altogether. So if you needed to claim again, you might not be covered. And it could be expensive or impossible for you to buy the same amount of cover again. We make sure we can protect you even after you ve made a claim. We don t pay out your whole lump sum if you don t need it. So, if you claim for a condition that s not very severe, we pay out for part of the amount you re covered for, and keep covering you for the remaining amount. We even offer additional cover options that top up your cover after you ve made a claim. You don t need to be reassessed, and we won t increase your premium after you ve made a claim. SOURCES 1. Hannover Re UK Life Branch August 2013 Estimates are based on Hannover Re UK Life Branch s interpretation of the general population incidence rates and their estimated view of future trends. Incidence rates for the entire population may be different to those lives that take out life insurance products. The typical critical illness product is a comprehensive one and covers most conditions seen in the market. VitalityLife estimates are based on the VitalityLife Plan with Comprehensive Serious Illness Cover. Estimates are based on the likelihood of making a claim before age VitalityLife research 2013
8 WE COVER ALL HEART ATTACKS AND ALL STROKES IF A DOCTOR TELLS YOU YOU VE HAD A HEART ATTACK OR A STROKE, WE PAY OUT We define medical conditions in the same way that the medical profession does. So, if your consultant diagnoses that you have had a heart attack or a stroke, we pay out. The amount we pay depends on the severity of your condition. It means we re able to cover all types of heart attack and all strokes. Most other insurers don t do this. 8 SOURCE: VitalityLife research 2013
9 WE COVER SOME EARLY STAGE CANCERS, SO WE PAY OUT WHEN OTHER INSURERS WON T BEING DIAGNOSED WITH CANCER CAN CAUSE A LOT OF ANXIETY EVEN IF IT S AT AN EARLY STAGE OR OF A LESS SEVERE FORM You may have to take time off work for treatment, which can cause stress and financial worries. That s why we pay out on a number of less severe and early-stage cancers that many other insurers don t cover. As a result, our Comprehensive Serious Illness Cover is 87% 2 more likely to pay out for a cancer claim than a typical critical illness policy. Our Primary and Comprehensive Serious Illness Cover both cover low-grade prostate cancer without the need for specific treatments. Our Comprehensive Serious Illness Cover also pays out 5% of your cover amount for a range of early stage cancers where the cancer cells haven t spread to the surrounding areas. Many other insurers only cover these early cancers in a limited number of body areas, such as the breast and the testicle. But no matter where the cancer is, it s still likely to cause you anxiety. So we don t distinguish between different body areas. Also, the insurers that do cover early stage cancers usually only pay out if you ve had surgery or invasive treatment. But it s not always necessary to treat cancer that way. Which is why our Comprehensive Serious Illness Cover pays out on diagnosis. OUR COMPREHENSIVE SERIOUS ILLNESS COVER COVERS MORE CANCERS THAN ANY OTHER INSURER SOURCES: 1. VitalityLife research Hannover Re UK Life Branch August 2013 Estimates are based on standard definitions set by Association of British Insurers as at 2011 VitalityLife estimates are based on the VitalityLife Plan with Comprehensive Serious Illness Cover Estimates are based on the likelihood of making a claim before age 65. 9
10 OUR COMPREHENSIVE SERIOUS ILLNESS COVER PAYS OUT SOONER FOR SOME NEUROLOGICAL CONDITIONS, EVEN IF YOU DON T HAVE PERMANENT SYMPTOMS IF YOU RE DIAGNOSED WITH ALZHEIMER S DISEASE, YOU MAY NEED TO MAKE IMPORTANT CHANGES TO YOUR LIFESTYLE. BUT ONCE YOU DEVELOP PERMANENT SYMPTOMS, YOU MAY BE LESS ABLE TO MAKE THESE CHANGES OR LESS LIKELY TO BENEFIT FROM THEM. With our Comprehensive Serious Illness Cover, we don t wait for permanent symptoms to appear before we help. We pay out 10% of your cover amount as soon as you re diagnosed. The rest of your cover amount is still available to you. So if your condition gets worse, or you re diagnosed with a more severe condition, you can claim again. You can do this until you have used up your whole cover amount. 10 We would also pay out in a similar way for a number of other neurological conditions, including multiple sclerosis, Parkinson s disease and motor neurone disease.
11 CASE STUDY SOPHIE S STORY Sophie takes out 250,000 of Comprehensive Serious Illness Cover when she s 40 years old. Ten years later, she s diagnosed with multiple sclerosis. She feels well enough to carry on working. But we still give her an initial 10% payout as soon as she finds out she s ill. She receives 25,000, which lets her make an extended visit to family overseas at a difficult time. WHEN SOPHIE S 55, SHE HAS A RELAPSE This time, she starts to show permanent symptoms of her illness, and begins to think carefully about changing her lifestyle. Fortunately, Sophie has kept her cover, and she claims again. We pay out 40% of her cover amount. The 100,000 she receives gives her the financial freedom to take early retirement. She s also able to make some modifications to her home, so she can get around a little easier. WHEN SOPHIE S 65, SHE S UNABLE TO LOOK AFTER HERSELF So, she claims again, and we give her the remaining 50% of her cover amount. This payout of 125,000, allows Sophie to invest in a state-of-the-art mobility scooter and wheelchair. It also helps to pay for a full-time carer, and for her family to visit regularly.
12 YOU CAN ADD EXTRA OPTIONS TO HELP YOU GET THE MOST FROM YOUR COVER PROTECTED LIFE COVER If you need both Life Cover and Serious Illness Cover, you could choose Protected Life Cover. It means that your amount of Life Cover will stay the same regardless of any Serious Illness Cover claims you make. MINIMUM PROTECTED ACCOUNT If you choose our Minimum Protected Account when you take your cover out, we ll top up your cover after each Serious Illness Cover claim you make. When you take it out, you can choose whether you want to top your cover back up to the original amount, or to a percentage of the original amount - anywhere between 25% and 100%. We won t increase your premiums after you ve made a claim, and you don t need to be reassessed. It means you re still protected, even if we ve already paid you the full amount you re covered for. OPTIONAL SERIOUS ILLNESS COVER FOR CHILDREN Adding Optional Serious Illness Cover for Children to your plan can help protect your family against the financial impact of caring for your child if they get sick. If your child is diagnosed with one of the illnesses we cover, we give you a cash lump sum. We take the same severity-based approach to payouts as we do on adult cover. So the amount you get will be a percentage of your cover amount. For children s cover, you can choose a cover amount of between 10,000 and 100,000. If we pay out less than the cover amount, and your child s illness gets worse, or they re diagnosed with another illness, they would still be covered. We cover children from one month old. And, if they stay in full-time education, we ll cover them until the plan anniversary after their 23rd birthday.
13 OUR SERIOUS ILLNESS COVER BOOSTER CAN GIVE YOU EVEN MORE HELP COPING WITH THE LONG-TERM EFFECTS OF SOME SERIOUS ILLNESSES TO SUFFER FROM A SERIOUS ILLNESS AT ANY TIME IN LIFE IS DIFFICULT But the younger you are, the longer you re likely to have to live with your condition, so the greater the financial impact could be. You might need to give up work, adapt your home or pay a carer. And you may have to do this for many years. If you re trying to bring up children while you re suffering from a serious illness, life can be even more difficult. Our Serious Illness Cover Booster extends the principle of severity based payments, so that for some conditions we pay out between 100% and 200% of your cover amount. The amount we pay depends on your condition and your age when you make a claim. And if you have dependent children on your plan, we boost your payout even further for some conditions. 13
14 Here s how adding our Serious Illness Cover Booster to your plan can help you feel even more secure about your future: 1 FOR CONDITIONS WITH A LONG-TERM PHYSICAL IMPACT WE BOOST YOUR PAYOUT TO BEYOND 100% OF YOUR TOTAL COVER AMOUNT If you develop one of the conditions we ve identified as having the most severe long-term physical impact for example, blindness or paralysis we ll boost your payout. The amount we ll boost it by depends on your age when you make a claim. The table below gives examples of how this amount changes over time. The younger you are, the greater the boost. You could get as much as double your cover amount. This means you can get extra help with these very severe conditions, without having to increase your cover amount. AGE AT NEXT BIRTHDAY AT TIME OF CLAIM TOTAL PAYOUT (AS A PERCENTAGE OF YOUR CLIENT S COVER AMOUNT) 200% 175% 150% 125% 100% HERE S AN EXAMPLE THAT ILLUSTRATES HOW THIS WORKS: John takes out 200,000 of Serious Illness Cover, and adds Serious Illness Cover Booster to his plan. When he s 44, he is paralysed in a car accident. Because of John s age, we boost his payout to 150% of his cover amount. So instead of 200,000, John gets 300,000. Underpinning this element of our Serious Illness Cover Booster is a guarantee that no matter how old you are, for a range of other conditions, we ll pay out 100% of your cover amount. 2 IF YOU HAVE DEPENDENT CHILDREN ON YOUR PLAN, YOUR PAYOUT COULD GET AN EXTRA BOOST People often take out insurance because they re worried about their children s future. That s why people choose our Optional Serious Illness Cover for Children or Education Cover. If you have either of these options as part of your plan, and you are diagnosed with a condition that we ve identified as having the most severe long-term physical impact, we ll give your payout an extra boost. We ll boost it by 10% of your cover amount for each dependent child you have on your plan, up to a maximum of 25,000 per child. This boost only applies if you get ill, not if your child gets ill. It s designed to ease the financial strain of bringing up children while coping with a serious illness.
15 CASE STUDY MICHAEL S STORY Michael is 25, and he s just had his first child. His new daughter has made him think a bit more about the future. So, he takes out Serious Illness Cover worth 150,000. For extra peace of mind, he opts for our Serious Illness Cover Booster. He also adds Optional Serious Illness Cover for Children so that his new daughter is covered on his plan. Three years later, Michael is involved in a serious car crash. At just 28 years old, he finds himself paralysed. So, he makes a claim. Because he d taken out Serious Illness Cover Booster, Michael gets a 90% boost on his payout. This takes it from 150,000 to 285,000. And because he d named his daughter on the plan, he gets an additional boost of 10% of his cover amount an extra 15,000. So, Michael receives a total payout of 300,000. It helps him supplement his healthcare with a private carer, and open a trust fund for his daughter s future.
16 Defaqto 5-star Rating Critical Illness (VitalityLife Plan) FIND OUT MORE Get in touch with your financial adviser or visit vitality.co.uk/life VitalityLife is a trading name of Vitality Corporate Services Limited. Registered number Registered in England and Wales. Registered office at 3 More London Riverside, London, SE1 2AQ. Vitality Corporate Services Limited is authorised and regulated by the Financial Conduct Authority. All information correct as at November All information correct as at March Part of the Discovery Group PRUPB111440_04/2015