For customers Whole of Life. Policy conditions. Pays a lump sum on death or diagnosis of a defined terminal illness.

Transcription

1 For customers Whole of Life Policy coditios Pays a lump sum o death or diagosis of a defied termial illess.

2 Cotets Welcome to Aego 03 What we mea by you 03 Your cotract 03 Plai Eglish 03 Cotact us 03 1 Your Whole of Life policy Uderstadig your policy Life isurace uder this Whole of 04 Life policy 1.3 Who ca take out this policy What you are isured for Who we will pay a valid claim to Iflatio-likig What iflatio-likig meas How we measure iflatio Icreasig your sum isured 05 ad paymets Stoppig iflatio-likig o 06 your policy 1.7 What we eed before we ca provide 06 the isurace 2 Holdig your policy i trust 06 3 Your paymets Whe you eed to make paymets What happes if you miss a paymet 07 4 Protectig your paymets Whe we will protect your paymets Defiitios of icapacity The three defiitios of icapacity Makig a claim What happes if iflatio-likig applies 09 to your policy 4.6 How we make your paymets for you Whe we will ot protect your paymets 09 5 Meetig your chagig eeds Icreasig the amout you are isured 11 for (Guarateed isurability optios) Exercisig a guarateed isurability 11 optio Whe the guarateed isurability 11 optios are ot available Maximum age limits for the optios Life-chagig evets Exercisig the guarateed 14 isurability optios more tha oce 5.2 Gift iter vivos coversio optio What gift iter vivos is Whe you ca use the GIV 14 coversio optio Exercisig a GIV coversio optio The GIV policy Protectig agaist iheritace 15 tax chages Maximum icrease i sum 15 isured Term extesio i relatio 15 to the icrease 5.3 Joit-life separatio optio What joit-life separatio is ad 15 whe ca you use it What we would eed Your sigle-life policies 16 6 Makig a claim Iformatio we will eed to cosider 16 a claim 6.2 If the isured perso has a termial illess Whe we will ot pay a claim 17 7 Geeral coditios Cacellig your policy Chages to your policy Notices Agreemet of Aego Paymets made uder the policy The law that applies to your policy 18 Addedum describig free cover Whole of Life Policy coditios Page 2 of 20

3 Welcome to Aego Thak you for choosig our Whole of Life policy. We ve bee part of the Aego group sice 1994, likig Scottish Equitable s 175 years of experiece i the UK s life isurace, pesios, auities ad ivestmet markets with Aego s global stregth. We provide techical support ad iformatio to fiacial advisers ad our policy owers. We ca t advise you. If you re usure if this policy is suitable for you, you should speak to a fiacial adviser. What we mea by you I this booklet you meas the perso(s) who ow(s) the policy from time to time i other words, the perso(s) who is/are legally etitled to a paymet from it. If the policy has bee placed uder trust, this will be the trustees, or their absolute assigees. The perso(s) who applied for the policy are likely to be trustees (usually with at least oe other perso). If the policy has ot bee placed uder trust, this will be the perso(s) who applied for the policy, or their absolute assigees. Your cotract Your Whole of Life policy is a cotract of isurace betwee you ad us. It icludes: The applicatio, icludig the declaratios made This booklet The policy schedule Ay further policy schedules ad policy coditios booklets we issue to you followig the exercise of a optio Ay documets we give you that make chages to your policy This booklet explais the detail of your policy. It s importat you read this booklet ad keep it i a safe place with your policy schedule ad ay other documets we give you that make chages to your policy. The code umber for this booklet is WL1 it matches the code o your policy schedule. Plai Eglish We have tried to use plai Eglish i this booklet but avoidig all techical terms is difficult. If there s aythig that s uclear please let us kow. Cotact us If you or your family eed to make a claim, call us ad speak to a member of our experieced claims team o They ll help you through the process ad explai what s required to make ad settle a claim. If you ve ay questios about your policy you should cotact your fiacial adviser i the first istace. You ca also phoe, or write to us. Call us o: , Moday to Friday, 8.30am to 5.30pm us at: protect_support@aego.co.uk Write to us at: Aego Ediburgh Park Ediburgh EH12 9SE If you d like a large prit, Braille or audio CD versio, please call Whole of Life Policy coditios Page 3 of 20

4 1 Your Whole of Life policy 1.1 Uderstadig your policy Terms used i your policy Terms used i this booklet What they mea schedule Beefit Your isurace The isurace uder the policy Beefit amout Sum isured The amout of moey we will pay o a valid claim Defied termial illess Termial illess A illess for which there is o kow cure or oe that has progressed to the poit that it caot be cured ad, i either case, the isured perso s attedig Cosultat ad our Chief Medical Officer believe it will lead to the isured perso s death withi 12 moths Life assured Isured perso The perso or persos whose lives are isured Policy start date Policy start date The date your isurace uder this policy starts. You may be etitled to free cover before this date Policyholder You The perso or persos who ow the policy from time to time Premiums Your paymets The cost of your policy Stadard exclusios Whe we will ot pay a claim Whe we will ot pay a claim Waiver of premium Protectig your paymets Waiver of premium For a extra cost you ca protect your paymets i certai circumstaces 1.2 Life isurace uder this Whole of Life policy Our Whole of Life isurace policy pays out a specified amout of moey, the sum isured: a if the policy is o a sigle-life basis, whe the isured perso dies or is diagosed with a termial illess o or after the policy start date b if the policy is o a joit-life, first-death basis, whe the first of the isured persos dies or is diagosed with a termial illess o or after the policy start date c if the policy is o a joit-life, secoddeath basis, whe the first of the isured persos dies either durig the free cover period (as described i A2 of the Addedum to this booklet) or o or after the policy start date ad the other isured perso dies or has bee diagosed with a termial illess o or after the policy start date To avoid doubt, where the policy is o a joitlife, secod-death basis, we do ot pay the sum isured if both isured persos have bee diagosed with a termial illess but either has died. Oce we have paid out the sum isured, the policy comes to a ed. Whole of Life Policy coditios Page 4 of 20

5 1.3 Who ca take out this policy You ca take out this policy if you are betwee the ages of 18 ad 84 ad are residet i the UK. You must also be residet i the UK to exercise ay of the optios available uder the policy (as described i coditio 5). There are some age restrictios o the optios available uder this policy, ad these are explaied i the relevat coditios. You ca apply either o your ow for a siglelife policy, or with aother perso for a joitlife policy. 1.4 What you are isured for The sum isured, ay optios that you have chose, ad ay specific exclusios that apply to your policy are show o your policy schedule. If you are etitled to ay free cover i the period before your policy start date, this will be explaied i our Whole of Life Key features documet available at the time of your applicatio. We also describe free cover i the Addedum to this booklet. 1.5 Who we will pay a valid claim to This table sets out who we will pay the sum isured to if you make a valid claim. Sigle life Type of policy Joit life, first death Joit life, secod death Who we will pay the sum isured to o a valid claim beig made Policy subject to valid trust Policy ot subject to valid trust Executor, admiistrator, absolute assigees Trustees or their absolute Survivor, executor, admiistrator, assigees absolute assigees Executor, admiistrator, absolute assigees We will ot, however, pay to trustees (or their absolute assigees) o a valid claim beig made uless we have evidece that satisfies us that valid trusts have bee declared of the policy, ad we have ay other evidece or iformatio that we may reasoably require as evidece of legal title to the policy. 1.6 Iflatio-likig What iflatio-likig meas Iflatio-likig meas that the sum isured ad your paymets automatically icrease each year to take accout of iflatio. Your policy schedule will say if iflatio-likig applies to your policy How we measure iflatio We measure iflatio by lookig at the chage i the Retail Prices Idex (RPI) over a 12-moth period. The 12-moth period used is the 12 moths edig three moths before the aiversary of your policy. If the RPI we use is ot published ay more, we will choose a similar idex Icreasig your sum isured ad paymets Where iflatio-likig applies, your sum isured icreases every year by the percetage icrease Sum isured Your paymet i RPI (as described i coditio 1.6.2), subject to a maximum of 10%. At the same time, your paymets will icrease to pay for the higher sum isured. Each year, your paymets will icrease by twice the percetage icrease applied to your sum isured. Here s a example of how iflatio-likig could work. These figures are for illustrative purposes oly: Before iflatiolikig Icrease i RPI over the 12-moth period The icrease we will apply After iflatiolikig 100,000 2% 2% 102, % 4% 104 Whole of Life Policy coditios Page 5 of 20

6 We will tell you what we will icrease your sum isured to ad what your ew paymets will be before we icrease them. If, over the 12-moth period, the chage i the RPI is egative, we will ot reduce your sum isured or your paymets Stoppig iflatio-likig o your policy We will stop iflatio-likig o your policy if the icrease would take your sum isured over the highest sum isured we allow. We will tell you if this happes ad if ecessary chage the amout of your paymets as a result. You ca ask us to remove iflatio-likig ad chage to fixed paymets at ay time by cotactig us. If you do, your sum isured will o loger icrease i lie with RPI ad, uless you make other chages to your policy, your paymets will stay the same. I the future, if you decide that you wat us to start icreasig the sum isured agai you should cotact us. We may ot be able to offer you iflatio-likig agai. 1.7 What we eed before we ca provide the isurace Before we ca provide the isurace, we will ask some questios about the health ad lifestyle of the isured perso(s). We may also eed medical or other evidece. We will tell them what evidece we eed. Whe we have everythig we eed we will tell you if we ca provide the isurace ad how much it will cost you. If you ask us to make a chage to your policy we might eed to ask some questios to help us cosider whether we ca agree to your request. Wheever we ask for iformatio, you ad the isured perso(s) must make sure the aswers are accurate. Reasoable care should be take by the respodet to aswer the questios we ask hoestly ad to the best of their kowledge. If ot, we might cacel your policy (see coditio 7.1). If the applicatio is made olie, we will sed a summary of the questios we ask ad the aswers give. Whe this summary is received, it is importat that the aswers give are checked, as we rely o this iformatio to decide o the coditios of your policy. You must tell us immediately if ay of the aswers are icorrect. 2 Holdig your policy i trust Where your policy is placed i trust your policy schedule will ame the trustees of the trust as the policyholder. Notwithstadig this, we will ot pay to trustees (or their absolute assigees) o a valid claim beig made uless we have evidece that satisfies us that valid trusts have bee declared of the policy, ad we have ay other evidece or iformatio that we may reasoably require as evidece of legal title to the policy. We will eed istructios from all the trustees before we ca make a chage to your policy. Whe you use ay of the optios explaied i this booklet, a ew policy or policies will be issued uder this cotract for that optio. The ew policy/policies will be subject to the trust applyig to your origial policy. Whole of Life Policy coditios Page 6 of 20

7 3 Your paymets 3.1 Whe you eed to make paymets Your policy schedule shows how much you eed to pay ad the date whe your paymets are due. Your paymets will stay the same, uless: a iflatio-likig applies (see coditio 1.6) b you ask us to chage your policy (see coditios 5 ad 7.2), or c we eed to chage your policy (see coditio 7.2) As part of your applicatio you will complete a Direct Debit istructio form (uless agreed otherwise). We will collect your paymets direct from your bak or buildig society accout. You should make sure there is eough moey i your accout for your paymets. We ca oly accept paymets from a bak or buildig society approved by us. 3.2 What happes if you miss a paymet You have 30 days from the date your paymet is due to make the paymet. If we have ot received a paymet we will let you kow. If we do ot receive your paymet withi the 30 days, we will cacel your policy. This would mea that we would ot pay out if you made a claim. After the 30 days, we might agree to restart the isurace, although we do ot have to do this. To help us decide, we may ask some more questios, for example about the health ad lifestyle of the isured perso(s). We may eed medical or other evidece to support the aswers. We will tell them what evidece we eed. If the circumstaces of the isured perso(s) have chaged sice you first applied, it might cost you more to restart your policy. If we agree to restart the isurace, you will have to pay all your missed paymets. If there is a valid claim withi the 30 days from the date your paymet is due ad before we receive it, we will deduct the amout of all missed paymets from the sum isured. 4 Protectig your paymets 4.1 Whe we will protect your paymets For a extra cost you ca protect your paymets if the isured perso is icapacitated ad cotiuously uable to work for more tha 26 weeks. This is called waiver of premium. If you choose this beefit it will ed o the isured perso s 67th birthday. If your policy is joit life, you ca choose to have waiver of premium for either or both of the isured persos. 4.2 Defiitios of icapacity There are three defiitios of icapacity to choose from. They are described i coditio 4.3. If you use this optio the icapacity defiitio you choose will be show o your policy schedule. If the isured perso is ot i paid employmet (icludig selfemploymet where regular earigs are beig take) whe they first become icapacitated, we will use the activities of daily work defiitio to decide if we will pay your claim: this meas that, o matter which icapacity defiitio was chose by you, the isured perso must satisfy the activities of daily work icapacity defiitio before we will make your paymets for you. Whole of Life Policy coditios Page 7 of 20

8 Where you have a joit-life policy, ad you have chose waiver of premium for both isured persos, you ca choose a differet icapacity defiitio for each. We will make your policy paymets for you, after 26 weeks, if the isured perso is assessed as havig cotiuously met the icapacity defiitio applyig to them. Where you have a joit-life policy with waiver of premium applyig for both isured persos, oly oe of them eeds to have bee assessed as meetig the icapacity defiitio applyig to them. Both isured persos do ot eed to be icapacitated. 4.3 The three defiitios of icapacity For the purpose of these defiitios, occupatio meas a trade, professio or type of work udertake for profit or pay. It does ot matter where the isured perso lives or if a job is available. The three defiitios are: Ow occupatio This applies if the isured perso is uable to do the material ad substatial duties of their ow occupatio as a result of accidet or sickess ad they are ot doig ay other occupatio. The material ad substatial duties are those that are ormally required for, ad/or form a sigificat ad itegral part of, the performace of the occupatio that caot reasoably be omitted or modified. Ay suited occupatio This applies if, as a result of accidet or sickess, the isured perso is uable to do their ow occupatio ad uable to do all other occupatios for which they are reasoably suited by educatio, traiig or experiece. Activities of daily work This applies if the isured perso has: a A iability to perform three or more of the followig activities: Walkig the ability to walk a distace of 200 metres o a level surface without stoppig due to breathlessess, agia or severe discomfort, ad without the assistace of aother perso but icludig or the use of appropriate aids, for example a walkig stick. Climbig the ability to walk up ad dow a flight of 12 stairs with the use of a hadrail ad takig a rest. Bedig the ability to get ito or out of a stadard saloo car, or the ability to bed or keel to pick up a teacup (or similar object) from the floor ad straighte up agai without the assistace of aother perso but icludig the use of appropriate aids. Commuicatig the ability to: a clearly hear (with a hearig aid or other aid if ormally used) coversatioal speech i a quiet room, or b uderstad simple messages, or c speak with sufficiet clarity to be clearly uderstood Readig havig eyesight, eve after correctio by spectacles or cotact leses, sufficiet to read a stadard daily ewspaper or to pass the stadard eyesight test for drivig. Failure for this activity would iclude beig certified blid or partially sighted by a registered ophthalmologist. Dexterity the physical ability to use hads ad figers, such as beig able to commuicate effectively usig a pe, pecil or keyboard. Resposibility ad idepedece the ability to idepedetly make arragemets to see a doctor ad take regular medicatio as prescribed by a medical practitioer, or similarly qualified medical doctor. Fiacial competece the ability to recogise the trasactioal value of moey ad the hadlig of routie fiacial trasactios such as payig bills or checkig chage whe shoppig. b Metal icapacity a orgaic brai disease or brai ijury (cofirmed by eurological ivestigatio) which has affected their ability to reaso ad uderstad ad has caused deterioratio Whole of Life Policy coditios Page 8 of 20

9 to a extet that they ca o loger look after themselves without the eed for cotiual supervisio ad assistace of aother perso. or c Metal ill-health a Severe Metal Illess Classificatio ICD-10 Code ad is uder the supervisio of the metal health team at its highest level (with or without Supervisio Register) or equivalet. 4.4 Makig a claim If you wat to make a claim for waiver of premium, you must otify us withi six weeks of the isured perso becomig icapacitated. We will obtai ay iformatio we eed ad might ask for the isured perso to be examied by a medical health professioal appoited by us. Late otificatio may affect the date we start makig your paymets for you. If we agree to make your paymets, we will cotiue to make them util the earliest of: the isured perso o loger meetig the defiitio of icapacity the isured perso s 67th birthday the isured perso s death We will keep i regular cotact with the isured perso throughout their icapacity ad may ask for updated reports. We will tell them whe we eed the reports ad what format they should be i. We might also ask for them to be examied by a medical health professioal appoited by us. No paymet is required for ay evidece requested by us. 4.5 What happes if iflatio-likig applies to your policy If you have chose for your paymets to be icreased by iflatio-likig (see coditio 1.6), ad we are makig your paymets followig a valid claim for waiver of premium, iflatio-likig will cotiue to apply. If a iflatio-liked icrease comes ito effect durig the waiver claim period, we will make your paymets based o the icreased paymet level. 4.6 How we make your paymets for you How we make your paymets for you deped o whether you pay mothly or yearly. For mothly paymets your direct debit will be cacelled ad your paymets will be made by us util the beefit eds, as described i coditio 4.4. For yearly paymets we will pay 1/12th of your yearly paymet each moth util the beefit eds, as described i coditio 4.4. If you make yearly paymets: a if the isured perso becomes icapacitated part way through the year, a partial refud will be made for each full moth of that year that they are icapacitated b if part way through the year the isured perso is o loger icapacitated, or reaches their 67th birthday, a paymet for the remaiig full moths of the year will be payable by you. If withi six moths of us o loger makig your paymets the isured perso is, for the same reasos, assessed as meetig the icapacity defiitio applyig to them, we will make your paymets without you havig to wait aother 26 weeks. 4.7 Whe we will ot protect your paymets We will ot protect your paymets: oce the isured perso is 67 years old if the isured perso travels or lives outside the home coutries* ad desigated coutries** for more tha 13 weeks at a time i ay 12-moth period. Your cover will start agai whe they have bee back i the home coutries* for 39 cotiuous weeks if the isured perso travels or lives withi the desigated coutries** for more tha 26 weeks at a time i ay 12-moth period. Your cover will start agai whe they have bee back i the home coutries* for 26 cotiuous weeks. Whole of Life Policy coditios Page 9 of 20

10 If the isured perso is icapacitated durig ay time that we are ot protectig your paymets you ca oly make a waiver of premium claim whe your cover starts agai. If your waiver of premium claim is accepted, we will make your paymets after 26 weeks. We will ot make your paymets for you if: you have ot made all your paymets to date the illess or ijury is excluded o your policy schedule the icapacity results from or is directly related to: alcohol or drug abuse war, ivasio, hostilities (whether war is declared or ot), civil war, rebellio, revolutio or takig part i a riot or civil commotio coditios due to ay Acquired Immue Deficiecy Sydrome (AIDS) ifectio with Huma Immuodeficiecy Virus (HIV) uless it was caused by oe of the followig: a a blood trasfusio give as part of medical treatmet b physical assault c a icidet occurrig durig the course of performig ormal duties of employmet, after the start of your policy ad satisfyig all of the followig: i the icidet must have bee reported to appropriate authorities ad have bee ivestigated i accordace with the established procedures ii where HIV ifectio is caught through a physical assault or as a result of a icidet occurrig durig the course of performig ormal duties of employmet, the icidet must be supported by a egative HIV atibody test take withi five days of the icidet iii there must be a further HIV test withi 12 moths cofirmig the presece of HIV or atibodies to the virus iv the icidet causig ifectio must have occurred i oe of the home coutries* or oe of the desigated coutries** * Home coutries are the Uited Kigdom, the Chael Islads ad the Isle of Ma. ** Desigated coutries are the Europea Uio member states (excludig the Uited Kigdom), Adorra, Australia, Caada, Gibraltar, Icelad, Liechtestei, Moaco, New Zealad, Norway, Sa Mario, Switzerlad, Turkey, the Vatica City State ad the Uited States of America. Whole of Life Policy coditios Page 10 of 20

11 5 Meetig your chagig eeds We have a umber of optios you may be able to use oce your policy has started. If we agree to you exercisig ay of these optios, we will issue you with a separate policy or policies uder this cotract for that optio. The policy coditios for that optio policy may be differet from those set out i this booklet, to reflect curret terms ad coditios available at the time of exercise of the optio. Where your origial policy was placed i a valid trust, ay ew optio policy issued will be subject to the same trust. Before we agree to make a chage we may ask more questios about the isured perso s health ad lifestyle ad for medical or other evidece to support the aswers. A chage may result i a icrease i the cost to you. 5.1 Icreasig the amout you are isured for (Guarateed isurability optios) You may be able to icrease the sum isured by exercisig oe or more of the guarateed isurability optios available uder the policy. You ca do this if ay of the life-chagig evets described i coditio happe to the isured perso(s), ad ay other coditios we have set out are met. Although we will ot eed to be give ay more medical iformatio about the isured perso(s), we will ask for cofirmatio of residecy, occupatio, smokig activity ad leisure pursuits to calculate your ew paymet amouts. It is likely that your paymets will icrease. There are limits o the amout that the sum isured ca be icreased by, ad these are detailed i coditio The sum isured to be icreased will be the iitial sum isured, icreased by iflatio-likig if that applies to the policy, ad reduced by ay amouts of sum isured that have bee coverted to sum isured uder a gift iter vivos policy (see coditio 5.2). Ay separate policy or policies issued to you uder this optio will be o the same basis as your origial policy uless we agree otherwise Exercisig a guarateed isurability optio If you wat to exercise oe of the guarateed isurability optios, you must apply to have your sum isured icreased withi six moths of the life-chagig evet for that optio (as described i the table i coditio 5.1.4) happeig. If we agree to you exercisig the guarateed isurability optio, we will issue a ew policy uder this cotract i relatio to the optio. Ay iflatio-likig ad/or waiver of premium beefit chose uder your origial policy will also apply to your guarateed isurability optio policy, as will ay exclusios applyig uder your origial policy Whe the guarateed isurability optios are ot available The guarateed isurability optios are ot available: a if the isured perso, or for a joit-life policy either isured perso, was rated because of their medical or family history if this applies to your policy, we will tell you before the policy start date ad it will be stated o your policy schedule b if the maximum age limit for the optio (as described i coditio 5.1.3) has bee reached c uder ay gift iter vivos policy or guarateed isurability optio policy issued uder this coditio 5 d durig the 26-week deferral period for a waiver beefit claim e durig ay period i which we are makig your paymets uder a waiver beefit claim Whole of Life Policy coditios Page 11 of 20

12 5.1.3 Maximum age limits for the optios For all of the guarateed isurability optios other tha the iheritace tax liability optio, the isured perso must be o older tha 55 o their ext birthday. For the iheritace tax liability optio, it is 70 years old o their ext birthday. If you have a joit-life policy, the maximum age limit will apply to the elder of the isured persos after which the optios caot be exercised Life-chagig evets Guarateed isurability evet Lifetime guarateed isurability optios Birth or legal adoptio of a child the birth of a child of the isured perso s or the legal adoptio by them of a child. Marriage or civil partership the isured perso gets married or eters ito a civil partership. Chage of home, home improvemet or home extesio the mortgage o the isured perso s mai residece icreases because they either move home, carry out improvemets or build a extesio to their mai residece. Career chage/promotio if the isured perso chages their job or is promoted ad their yearly basic salary (that is their salary before icome tax ad Natioal Isurace cotributios are take but excludig ay other taxable beefits that might be payable ad ay employer cotributios to ay pesio arragemets) icreases by at least 10%. Maximum icrease i your iitial sum isured plus attaied iflatio-likig icreases, if applicable, to your policy less ay sum isured coverted to sum isured uder a gift iter vivos policy The lower of: 50% 150,000 The lower of: 50% 150,000 The lower of: 50% 150,000 The lowest of: 50% four times the icrease i salary 150,000 We will ot icrease your sum isured if the isured perso: is self-employed is a ower director of a compay that employs them cotrols the rate of their basic salary Evidece required A extract copy of the birth or adoptio certificate (from the Registrar of Births, Deaths ad Marriages) of the child bor or adopted. We caot accept a photocopy. A extract copy of the marriage or civil partership certificate (from the Registrar of Births, Deaths ad Marriages). We caot accept a photocopy. Writte evidece from the leder ad previous leder (if the isured perso is icreasig their mortgage) that clearly shows the icrease i the mortgage. Writte evidece from the isurer perso s employer ad/ or previous employer that clearly shows the icrease i basic salary. Whole of Life Policy coditios Page 12 of 20

13 Divorce or dissolutio of civil partership If you have a sigle-life policy ad the isured perso divorces or dissolves a civil partership. The lower of: 50% 150,000 A extract copy of the decree absolute or dissolutio certificate. We caot accept a photocopy. Busiess guarateed isurability optios Icrease i parter s/ shareholdig director s iterest or icrease i busiess loa if the percetage amout of the equity the isured perso holds i a partership or compay i which they are a equity parter or ower director icreases or they icrease a busiess loa. Sole trader if the isured perso is a sole trader ad their yearly et relevat earigs icrease or they icrease the amout of a busiess loa that they have take out. Net relevat earigs are earigs: i immediately derived from a trade, professio or vocatio, ad/or ii employmet, such as salary, wages, bous, overtime, commissio, ad/or iii ay part of a redudacy paymet which exceeds the 30,000 tax exempt threshold, ad/or iv beefits i kid which are chargeable to tax (applies to employees earig over 8,500, ad to directors), ad/or profit related pay (icludig the part which is ot taxable) The lower of: 50% the amout of the icrease i the busiess loa the amout of the icrease i capital that the isured perso has ivested i the partership or compay 150,000 The lower of: 50% 150,000 Five times the icrease i the isured perso s et relevat earigs We will ask for evidece of the amout of the busiess loa or ay other fiacial iformatio that we thik ecessary. Fiacial accouts for the isured perso s busiess or writte evidece from their leder ad previous leder (if applicable) that clearly shows the icrease i the busiess loa. Whole of Life Policy coditios Page 13 of 20

14 Iheritace tax guarateed isurability optio Except where you have a joit life, first death policy, if the isured perso s potetial iheritace tax liability has icreased because: their assets have grow, there has bee a icrease i the iheritace tax rate there has bee a reductio i the iheritace tax rate bads, exemptio or reliefs The lower of: 50% 250,000 Where the isured perso s potetial tax liability has icreased because their assets have grow, we will eed writte evidece from a lawyer showig ay assets that have bee iherited, or ay other iformatio that cofirms the icrease i your assets Exercisig the guarateed isurability optios more tha oce Where you use the guarateed isurability optios o more tha oe occasio, the percetage icreases i your sum isured will, o each occasio, be added together. Whe the combied icreases reach the lower of: 50% of your iitial sum isured plus attaied iflatio-likig icreases (if applicable) less ay sum isured coverted to sum isured uder a gift iter vivos policy, ad 250,000 you will ot be able to use ay more guarateed isurability optios. No exercise of a guarateed isurability optio ca take the sum isured above these limits. 5.2 Gift iter vivos coversio optio What gift iter vivos is This gift iter vivos (GIV) coversio optio lets you covert some of the sum isured uder your origial policy ito sum isured uder a GIV policy. It is iteded to help cover the potetial iheritace tax liability that the gift recipiet would have to pay if the isured perso died withi seve years of makig a gift that may be icluded as part of their estate whe calculatig the iheritace tax liability. If you use the GIV coversio optio, your sum isured uder your origial policy ad your paymets for that sum isured will be reduced. There is o termial illess beefit uder our GIV policy. The sum isured is oly paid if the isured perso dies. The GIV policy is described i more detail i coditio Whe you ca use the GIV coversio optio You ca use the GIV coversio optio if your policy is o a sigle-life basis, or is o a joitlife, secod-death basis ad oe of the isured persos has died. You ca use the GIV coversio optio more tha oce Exercisig a GIV coversio optio If we agree to you exercisig the GIV coversio optio, the schedule for the ew policy issued uder this cotract for this optio will show your GIV sum isured over the seve-year period of the policy ad the paymets due for it. We will also issue a revised policy schedule for your origial policy, to reflect the reduced sum isured ad paymets due uder that policy followig the coversio. Ay waiver of premium beefit chose uder your origial policy will also apply to your GIV policy, as will ay exclusios applyig uder your origial policy. Iflatio-likig does ot apply to GIV policies. No ew medical evidece is required whe you apply to exercise this optio. Whole of Life Policy coditios Page 14 of 20

15 5.2.4 The GIV policy As the amout of iheritace tax liability for a GIV decreases to il over a seve-year period, the sum isured uder the GIV policy also decreases over a seve-year period. The table below shows the percetage of the sum isured coverted from the origial policy that would be paid i each policy year o the death of the isured perso. Uless the isured perso dies durig the seve-year period, or you have exercised the optio i coditio 5.2.5, at the ed of the seve-year period the GIV policy eds ad o beefit is payable uder it. Policy year i which the isured perso dies Years 1, 2 ad 3 Percetage of sum isured coverted that we would pay uder the GIV policy o the death of the isured perso (%) 100 Year 4 80 Year 5 60 Year 6 40 Year Protectig agaist iheritace tax chages Oce you have coverted sum isured uder your origial policy to sum isured uder a GIV policy, if the iheritace tax legislatio chages so that the potetial iheritace tax liability o the gift will be more, you ca ask to: a icrease the sum isured uder the GIV policy, ad b exted the term of the GIV policy i relatio to such a icrease If you wat to use this optio, you must make the request withi six moths of the chage i legislatio. Icreasig the sum isured will cost you more. You ca exercise this optio oly oce for each GIV policy you have Maximum icrease i sum isured The icrease i the sum isured from exercisig this optio must ot be more tha the amout eeded to cover the icrease i the iheritace tax liability. Followig the exercise of this optio, your sum isured must ot be more tha twice the GIV sum isured whe the policy started. If your GIV policy has bee edorsed to reduce the sum isured, your sum isured followig the exercise of this optio must ot be more tha twice the amout the GIV sum isured would have bee at the start of the policy to give you the sum isured immediately before the exercise of this optio Term extesio i relatio to the icrease The term of the GIV policy i relatio to the icrease i sum isured will be the shorter of: the period eeded to cover ay iheritace tax liability, or seve years plus the remaiig period of your GIV policy, to the lower umber of whole years whe this optio is used To avoid doubt, the seve-year term for your origial GIV sum isured will ot chage. 5.3 Joit-life separatio optio What joit-life separatio is ad whe ca you use it If the isured persos divorce or dissolve a civil partership, providig either of them have reached their 71st birthday, you might be able to split a joit-life policy ito two separate sigle-life policies without us havig to be give more medical iformatio or evidece. Due to the medical history or persoal circumstaces of the isured persos, this optio may ot be available to you. If that is the case we will tell you before your policy starts, ad it will be stated o your policy schedule. Whole of Life Policy coditios Page 15 of 20

16 5.3.2 What we would eed If you wat to exercise this optio, we would eed a extract copy of the decree absolute or dissolutio certificate. We caot accept a photocopy Your sigle-life policies Joit life, first death If you have a joit-life, first-death policy, the maximum sum isured uder each replacemet sigle-life policy is 100% of the sum isured uder the joit-life policy. Joit life, secod death If you have a joit-life, secod-death policy, you ca split the sum isured betwee the two sigle-life policies, but the total of the two ew sums isured caot be more tha 100% of the sum isured uder the joit-life policy. The split of the origial sum isured is subject to the ew sum isured uder each policy ot exceedig that isured perso s iheritace tax liability immediately followig the divorce or dissolutio. We will adjust the paymets due for each of the two ew policies to reflect: what it would have bee if you had take out a sigle-life policy whe your policy started ay paymet icreases as a result of iflatio-likig the split of the origial sum isured Ay iflatio-likig ad/or waiver of premium beefit chose uder the joit-life policy will also apply to your sigle-life policies, as will ay exclusios applyig uder your joit-life policy. 6 Makig a claim 6.1 Iformatio we will eed to cosider a claim Depedig o the claim, before paymet ca be made, we might have to obtai some medical iformatio. There will be o cost for the medical iformatio requested by us. We will also eed to cofirm a umber of thigs, icludig: a who should legally receive the claim amout b the age(s) of the isured perso(s) We will ot pay to trustees (or their absolute assigees) uless we have evidece that satisfies us that valid trusts have bee declared of the policy, ad we have ay other iformatio that we may reasoably require as evidece of legal title to the policy. 6.2 If the isured perso has a termial illess If the isured perso has a termial illess, i additio to the requiremets i coditio 6.1, we will eed to write to their attedig Cosultat for cofirmatio that the followig defiitio of termial illess is satisfied: a there is o kow cure for their illess or it has progressed to the poit that it caot be cured, ad b i the Cosultat s opiio, the illess is expected to lead to the isured perso s death withi 12 moths. This view must also be supported by our Chief Medical Officer The Cosultat providig the report must be from a hospital i oe of the home coutries* or desigated coutries**. Whole of Life Policy coditios Page 16 of 20

17 * Home coutries are the Uited Kigdom, the Chael Islads ad the Isle of Ma. ** Desigated coutries are the Europea Uio member states (excludig the Uited Kigdom), Adorra, Australia, Caada, Gibraltar, Icelad, Liechtestei, Moaco, New Zealad, Norway, Sa Mario, Switzerlad, Turkey, the Vatica City State ad the Uited States of America. 6.3 Whe we will ot pay a claim We will ot pay out o a claim if the isured perso commits suicide (whether at the time they were sae or isae) withi 12 moths of: your policy startig your policy beig restarted (see coditio 3.2) other tha i relatio to iflatio-likig icreases, the sum isured beig icreased (oly for that icreased amout) No claim ca be cosidered where your policy has bee cacelled (see coditio 7.1). 7 Geeral coditios 7.1 Cacellig your policy Whe you ca cacel your policy After your policy has started we will sed you a otice of your right to cacel. You the have 30 days to chage your mid ad get a full refud of all paymets you have made to us. If after the 30 days you decide you wat to cacel the policy, you ca do so at ay time by cotactig us. If you cacel your policy we will ot pay out the sum isured ad you will ot get aythig back. Where you have more tha oe policy uder this cotract, you may be able to cacel oe or more of those policies without havig to cacel all of them. Whe we will cacel your policy Oce your policy starts we will ot cacel it uless: you have missed a paymet. We have explaied this i more detail i coditio 3.2 you, the applicat for the policy (if you are ot the applicat) or the isured perso act frauduletly or provide utrue, iaccurate or misleadig iformatio whe a claim is made, whe a applicatio is made to chage a policy, or whe there is a applicatio to restart paymets. We may cacel your policy if we decide that you, the applicat or the isured perso would have kow, or should have kow, the true aswer to a questio we asked but you, the applicat or the isured perso have deliberately or recklessly give a false aswer. This is kow as deliberate or reckless misrepresetatio. If we cacel the policy due to this deliberate or reckless misrepresetatio we will ot repay ay paymets made ad we will ot pay out the sum isured. We may also cacel your policy, or ot pay out the full amout of the sum isured, if you, the applicat or the isured perso have carelessly give a false aswer to a questio we asked where we would have made a differet decisio about the isurace if you, the applicat or the isured perso had aswered hoestly ad i full. This is kow as careless misrepresetatio. The actio we take will deped o what we would have offered had the relevat questio bee aswered hoestly ad i full. If we would still have offered the policy but o differet terms for the same paymet, the policy will be Whole of Life Policy coditios Page 17 of 20

18 altered to reflect these differet terms. If we cacel the policy, this will be because we would ot have offered the policy had the relevat questio bee aswered hoestly ad i full: i these circumstaces we will repay the paymets made but ot pay out the sum isured. 7.2 Chages to your policy Whe you ask us to make a chage to your policy, we might chage the terms of your policy. This could mea that your paymets icrease. We ca make some chages to your policy without your agreemet i a reasoable ad proportioate maer where we believe it is ecessary or prudet. This might iclude, for example: where we cosider it will make your pla easier to uderstad or fairer to you to allow us to provide a improved, more efficiet, or lower-cost service to you to reflect market coditios ad geeral idustry practice to reflect ay chages to the costs we face i providig services to you because of chages i the way we do busiess to take accout of ay chages i legislatio, codes of practice or regulatios ad to take accout of ay decisios made by a court, ombudsma, regulator or similar body because of chages i techology. We will give you at least 30 days otice of the chage, uless it is ot practical it would result i us beig uable to comply with legal or regulatory chages it is ot possible i which case we will give you as much otice as we ca. 7.3 Notices All otificatios ad correspodece must be set to us at Aego, Ediburgh Park, Ediburgh EH12 9SE. We will always commuicate i Eglish. We will ot accept or process ay claim, request or istructio made by you uder the policy util we have received all documetatio ad iformatio we eed. If you assig ay of your legal rights uder your policy to someoe else we must see the assigmet. You might ot be able to assig your policy where it is held i trust. If you use your ow trust, after the policy has started, you will eed to sed us the trust deed so we ca update our records. 7.4 Agreemet of Aego Where Aego s agreemet, coset or approval is eeded i relatio to ay actio uder the policy, you caot take that agreemet, coset or approval as havig bee give util we have cofirmed it i writig. 7.5 Paymets made uder the policy Uless we agree otherwise: a all paymets made to ad by us uder the policy must be made i sterlig b we will make paymets of beefits oly to a bak accout i the Uited Kigdom 7.6 The law that applies to your policy Your policy is govered by the laws of Eglad ad Wales. Whole of Life Policy coditios Page 18 of 20

19 Addedum to the policy coditios describig free cover I this addedum: You meas the perso(s) who has/have applied for the policy. Free cover does ot form part of the policy. A1 Eligibility for free cover To be eligible for free cover, at the time of your applicatio: a for a sigle-life policy, you must be uder the age of 70, b for a joit-life policy, you must both be uder the age of 70 c you must ot have applied, or be i the process of applyig, for similar isurace with aother isurace compay d you must ot have a dimiished metal capacity A2 Period durig which free cover applies If you are eligible for free cover, it will apply i the period betwee the date we receive your fully completed applicatio (icludig the completed direct debit, where applicable) ad whichever is the earliest of: the day before the policy is issued the day we tell you we caot offer you cover 90 days from whe we received your applicatio A3 Amout of free cover The amout of free cover provided is the lower of: a the sum isured you have applied for, ad b 1 millio A4 Whe we would pay the free cover amout If free cover applies to you, provided the coditios i A5 do ot apply, we will pay the free cover amout: a where you have applied for a sigle-life policy, if you die durig the free-cover period (as described i A2) b where you have applied for a joit-life, first-death policy, if oe of you dies durig the free-cover period (as described i A2) c where you have applied for a joit-life, secod-death policy, if both of you die durig the free-cover period (as described i A2) If there is a valid claim durig the free cover period: a if you have declared valid trusts of ay free cover available to you before the policy is issued, we will pay the free cover amout to the trustees. However, we will ot pay to trustees uless we have evidece that satisfies us that such valid trusts have bee declared b if you have ot declared valid trusts of ay free cover available to you before the policy is issued, or we do ot have satisfactory evidece of such a trust, we will pay the free cover amout i the same way as a valid claim uder the policy would be paid i the same circumstace (see coditio 1.5) A5 Whe we will ot pay the free cover amout We will ot pay the free cover amout if: a you die, directly or idirectly, from a coditio that caused symptoms before you applied or a coditio you were aware of whe you applied, or b you commit suicide Whole of Life Policy coditios Page 19 of 20

20 Aego is a brad ame of Scottish Equitable plc. Scottish Equitable plc, registered office: Ediburgh Park, Ediburgh EH12 9SE. Registered i Scotlad (No ). Authorised by the Prudetial Regulatio Authority ad regulated by the Fiacial Coduct Authority ad the Prudetial Regulatio Authority. Fiacial Services Register umber A Aego compay Aego UK plc C IP /15