GROUP PROTECTION. Group Critical Illness Cover. Technical guide for employers. Employee Benefits made easier by Legal & General

Transcription

1 GROUP PROTECTION Group Critical Illness Cover Technical guide for employers Employee Benefits made easier by Legal & General

2 Welcome to Legal & General We have been working with intermediaries, pension advisers, risk and benefit consultants for over 75 years and more recently have become one of the leading providers of flexible and voluntary benefits. We currently administer over 7,400 group protection policies which provide protection to more than 2,000,000 employees. Our dedicated team have the knowledge and flexibility to tailor bespoke schemes from the standard 50 life schemes to the large complex 250,000 life schemes across multiple locations involving various occupations and complex risk factors. Each policy is reviewed individually on its merit, and by applying our extensive knowledge of the protection market relative to the location, occupation, claims history and benefits required, we can offer some of the most competitive rates in the market place. This technical guide is designed to explain the features of our Group Critical Illness Cover product. You should read it with our quotation. The full terms of the product are contained in our standard contract terms and conditions which form part of the policy document. We will issue this after we have agreed to provide cover and all the policy details have been finalised. However, if you would like to see a copy of the standard terms and conditions, please ask. This technical guide does not form part of the contract although our quotation, which is a part of the contract, may refer to some of the explanations given in this guide.

3 Index Page number Aims 1 Your commitment 1 Risk factors 1 How the policy works 1 Your questions answered 2 1 What factors should I consider in deciding what benefits to provide? Who can be covered? When will cover end? What types of cover are available? When will the lump sum be paid? 4 2 How do I set up a scheme? Requirements to set up the scheme Medical evidence needed before members can be covered Early entrants Late entrants What happens if a claim arises before the medical assessment has been completed? 5 3 What premiums will you charge for the cover? How will you work out the premiums? Will there be any unexpected extra premiums? What commission is allowed for in the premium? Is there a discount for good claims history? 6 4 How does the scheme accounting work? What information do you need for accounting purposes? How are premiums adjusted for members who join, leave or have benefit increases during the policy year? If the policy is cancelled midyear, will I lose any premiums I have paid in advance? 6 5 How do I make a claim? 7 6 What is not covered? 7 7 Can cover be provided for an employee (or equity partner) who is not based in the UK? 7 8 What tax rules apply? 8 9 Can members continue their cover if they leave my employment? 8 Further information 8

4 Aims The policy aims to do the following. Provide a lump sum following a specified survival period after an employee (or any of their children) is diagnosed as having a specified critical illness or condition. If the business is a partnership, benefit can also be provided for the equity partners. We only cover the critical illnesses we define in our policy and no others. The full list of illnesses we cover is shown in question 1.3. There are also some circumstances when we will not pay out. These are shown in question 6. Offer a choice of cover relating to these benefits. Your commitment You must do the following. Provide all the information we ask for when you apply for a policy, at renewal dates and to support any claims, and tell us when any relevant details change. We may not pay claims if you do not provide this information. Pay the premiums when they are due. Keep to all the conditions set out in the policy. Tell us about any claims within the time limits set out in the answer to question 5. Risk factors The policy carries the following risks. If you stop paying premiums, or you fail to keep to the policy terms and conditions, all cover under the policy will end. We normally guarantee the premium rates that apply to a policy until the end of the second policy year, when we then review them. We normally carry out further reviews every two years and, after each review, we guarantee the rates up to the next review date. However, for Unit Rated policies (see question 3.1) we can alter the guaranteed rate at an annual renewal date before then if there is a change of more than 25% in the membership of, or total benefit provided by, the policy. We may also review the premium rates if a change is made to the agreed scheme eligibility or benefit structure. We can change the policy terms at the end of any guarantee period, although we will give you at least two months written notice of any change. We can cancel the policy if the number of members fall below five. We will give you the specific terms and conditions that apply to a policy as part of our quotation which will usually be guaranteed for three months. We will not pay claims for any pre-existing conditions (See question 6). How the policy works We will normally need at least 50 members to be covered when the policy starts. You meet the cost of the cover. You decide the type and level of benefit and any other optional features, all of which must be within our benefit limits (see question 1). You decide the eligibility conditions for the scheme. These will be set out in the policy and you must include all eligible employees when they first become eligible. If your business is a partnership, you may also include the equity partners. You give us all the information we need when you make a claim. If you make a valid claim, we will pay a lump sum to you, as trustee, in the form of a cheque made payable to the member. You will then pass it on to the member. The policy will continue indefinitely as long as you meet its conditions, including paying premiums when they are due. However, for administrative purposes the first day of each yearly accounting period (see question 4) will be considered to be the annual renewal date. At this time we will need information from you for accounting purposes (see question 4.1). Premium rate reviews (see Risk factors) will always take effect from an annual renewal date. While you continue to pay premiums, we will provide cover and pay all the valid claims you make. To protect you and Legal & General from financial crime, Legal & General may be required to verify the identity of new and sometimes existing customers. This may be achieved by using reference agencies to search sources of information relating to you (an Identity Search). This will not affect your credit rating. If this fails, Legal & General may need to approach you to obtain documentary evidence of identity. 1

5 Your questions answered 1 What factors should I consider in deciding what benefits to provide? You do not need to provide the same benefits for all employees (and equity partners if your business is a partnership). If you have clearly defined categories of employees (for example, office staff and production staff), the benefits can be different for each category. If you wish, the policy can also cover a member s husband or wife (their spouse) or civil partner. You would have to pay an extra premium for this. When considering what benefit to provide, you need to know our benefit limits and the different conditions that can be covered (see question 1.3). The benefit limits are as follows. Member s Benefit four times the earnings used for scheme purposes (Scheme Earnings) or 500,000, whichever is less. Spouse s or civil partner s Benefit an amount equal to the Member s Benefit or 50,000, whichever is less. Children s Benefit (provided automatically at no extra cost) an amount equal to 25% of the Member s Benefit or 20,000, whichever is less, for each child. There is no limit to the number of children we will cover. Scheme Earnings are usually the member s basic annual salary, but you may use other earnings if this is more appropriate (for example, to allow for other income such as bonuses or commission). Directors fees are not considered to be earnings for this purpose. For equity partners, benefits will usually be based on earnings averaged over the last three years for which accounts have been produced. 1.1 Who can be covered? Employees (and equity partners) can be covered for the policy benefits once they have become members of the scheme and have met the eligibility conditions and the conditions relating to medical evidence (see question 2.2) and pre-existing conditions (see question 6). a) You will need to set out the eligibility conditions which will include: the minimum and maximum entry ages for new members; any service qualification (the minimum length of service needed); a description of the eligible category or categories of employees; the entry date when employees can join and the date on which members become entitled to benefit increases; and details of any link to membership of a pension scheme. The conditions relating to entry ages, entry dates and service qualification must be the same for each employee (and equity partner) within a defined category. You should take account of any relevant laws on discrimination or unfair treatment, such as those relating to age, the equal treatment of men and women and the treatment of part-time, fixed-term and disabled employees. You must include all eligible employees (and equity partners) in the scheme on the entry date on which they first meet all the eligibility conditions, otherwise we will treat them as early entrants (see question 2.3) or late entrants (see question 2.4). However, employees can decide not to become members if they object to having to pay the income tax arising as a result of the premium you pay being treated as a benefit in kind (see question 8). b) Entry dates and benefit increases To allow as much flexibility as possible, the entry date for new members may be: the annual renewal date (yearly entry); a specified date each month (monthly entry); or the first day on which all the eligibility conditions are met (daily entry). Similarly, benefit increases for existing members may take place: on the annual renewal date (yearly changes); on a specified date each month (monthly changes); or immediately when a member s earnings are increased (daily changes). It is not necessary for entry and benefit increases to be on the same basis, for example, entry could be daily and benefit increases could be yearly. If a member becomes eligible for a different benefit category within the scheme, the new benefit level will apply immediately regardless of the normal entry date for that category as long as any other requirements we may have specified (for example, being actively at work ) have been met. If the new category allows for daily changes, we will also take account of any increase in the member s Scheme Earnings at the same time, otherwise the changes will not take effect until the next normal date for benefit changes in that category. 2

6 Your questions answered (continued) c) Temporary absence from work We will continue to provide cover for a temporary absence of up to three years if the member is off work because of illness or injury, or up to one year for absence due to any other reason. You can choose other periods of temporary absence to match your needs. If the benefit provided by the policy is based on earnings, we will continue to base the member s cover on their earnings. However, if the member s earnings are reduced at any time while they are off work, cover will continue at the same level as before that reduction. The temporary absence cover described above does not apply to equity partners. However, they will be covered while they are still equity partners and entitled to a share of the profits, whether they are off work or not. If a member is on parental leave, we will continue to provide cover so long as he or she remains entitled to the benefit of the terms and conditions of their employment. 1.2 When will cover end? a) Under normal circumstances Cover for a member (and their children, spouse or civil partner, where insured) normally ends: when they leave your employment or are no longer eligible to be a member; when they reach the Benefit Termination Date set out in the policy (usually the normal retirement date fixed by the employer); if they retire early; when their period of temporary absence cover ends; or if they die before benefit starts being paid. Cover for a spouse, civil partner or child will end if they die or no longer qualify for benefit. Spouse s or civil partner s cover will normally end when they reach the age of 70. We can provide cover to age 70, however will not provide cover for total and permanent disability permanent and irreversible beyond a member s (and spouse s or civil partner s where insured) 65th birthday. b) Cancelling the cover The policy will continue until you cancel it so long as all its conditions are met. You will need to give us 14 days notice in writing if you want to cancel the policy. Similarly, we will give you 14 days notice in writing if we have to cancel the policy because its conditions have not been met. All cover provided will end when the policy is cancelled. 1.3 What types of cover are available? There are two types of cover available, Core and Additional. The definitions of the critical illnesses and conditions indicated by an asterisk (*) are the same as the guidelines published by the Association of British Insurers (ABI) in their Statement of Best Practice, and those indicated with two asterisks (**) improve on the published guidelines. These headings are only a guide as to what is covered. The full definitions of the critical illnesses and conditions are contained within the policy and will also be included with the quotation. These typically use medical terms to describe the critical illnesses and conditions, and in some cases the cover may be limited. For example: Some types of cancer are not covered. To make a claim for some illnesses, the member needs to have permanent symptoms. Please note that exclusions apply. Details of these are found in question 6 What is not covered?. a) Core cover The critical illnesses and conditions covered under this option are: Cancer excluding less advanced cases* Coronary artery by-pass grafts with surgery to divide the breastbone* Heart attack of specified severity** Kidney failure requiring dialysis* Major organ transplant* Motor neurone disease resulting in permanent symptoms* Multiple Sclerosis with persisting symptoms* Parkinson s disease resulting in permanent symptoms* Pre-senile dementia resulting in permanent symptoms Stroke resulting in permanent symptoms* b) Additional cover This option covers all the critical illnesses and conditions included in the Core cover above, plus the following critical illnesses and conditions: Angioplasty to treat specific conditions of specified severity Aorta graft surgery requiring surgical replacement** Benign Brain Tumour resulting in permanent symptoms* Blindness permanent and irreversible* Coma resulting in permanent symptoms** Deafness permanent and irreversible* Heart valve replacement or repair with surgery to divide the breastbone* 3

7 Your questions answered (continued) HIV infection caught in the European Union, Channel Islands or the Isle of Man from a blood transfusion, a physical assault or at work in an eligible occupation* The eligible occupations for HIV caught at work are: - The emergency services police, fire, ambulance. - The medical profession including administrators, cleaners, dentists, doctors, nurses and porters. - The armed forces. Loss of hands or feet permanent and physical severance* Loss of independent existence (including muscular dystrophy) permanent and irreversible Loss of speech permanent and irreversible* Paralysis of limbs total and irreversible* Rheumatoid arthritis of specified severity Third degree burns covering 20% of the body s surface area* Total and permanent disability permanent and irreversible Traumatic head injury resulting in permanent symptoms* 1.4 When will the lump sum be paid? We will pay the lump sum if the member (or their child, spouse or civil partner, if covered) survives for a period of 30 days after being diagnosed as having one of the specified critical illnesses or conditions, except in the following circumstances. Claims for HIV infection caught in the European Union, Channel Islands or the Isle of Man from a blood transfusion, a physical assault or at work in an eligible occupation As long as the definition for this condition has been met, we will pay benefit after a blood test, carried out within 12 months of the event which put the member (or their child, spouse or civil partner, if covered) at risk, confirms the presence of HIV or antibodies to that virus. Claims for total and permanent disability permanent and irreversible We will pay benefit after a period of six months throughout the whole of which the member (or their child, spouse or civil partner, if covered) has been disabled. 2 How do I set up a scheme? 2.1 Requirements to set up the scheme Our quotation will set out the requirements for starting cover under a particular policy, but in all cases we will need to receive a proposal form and the first premium within 14 days of the date we agree to provide cover. 2.2 Medical evidence needed before members can be covered One of the advantages of a group scheme that includes all employees (and equity partners) who meet the eligibility conditions is that it is usually possible to get a certain amount of cover without the need for members to provide details about their health and pastimes. In order to do this we will normally provide cover by setting what is known as a Free Limit. The Free Limit is an amount of cover up to which we will not need medical evidence. We will normally set it as 150,000 of Member s Benefit for all schemes. We will show the Free Limit in the quotation. If being included in the scheme depends on joining your pension scheme, for which membership is voluntary, the Free Limit will also depend on the percentage of eligible employees joining your pension scheme. If we do not know this when we produce our quotation, we will assume that at least 75% of eligible employees will have joined the pension scheme at the start date of the policy. We will reduce the Free Limit we quoted if this is not the case. A pre-existing condition exclusion (see question 6) will apply to cover up to the Free Limit. This means that we will not accept claims for any condition that the member (or their child, spouse or civil partner, if insured) suffered before the cover started. Also, we will not pay benefit for certain critical conditions which occur within two years of the cover starting and are related to a condition that existed before the cover started. If a member s benefit entitlement goes over the Free Limit, they will need to provide medical evidence if they want full cover. To begin with the member will need to fill in a Member s Declaration form, but we may ask for more evidence which could include a medical examination and blood or other tests. We will assess the medical evidence and decide if any special terms are appropriate. If we do apply special terms, these will apply immediately. Where our letter explaining any special terms includes an extra premium loading, you can advise us in writing within 30 days that you no longer require the cover to which the loading relates. If the medical evidence provided does not result in any special terms being applied, we will not apply the pre-existing condition exclusion to any cover, whether above or below the Free Limit. We will not need any medical evidence for spouses, civil partners or children s cover. The pre-existing condition exclusion will always apply to their cover. 4

8 Your questions answered (continued) Once a member has provided medical evidence, if their benefit entitlement increases at a later date, we may ask for more medical evidence depending on the amount of the increase and any special terms that already apply. If you are transferring the insurance of an existing scheme to us from another insurer, we ll not normally need medical evidence for an existing member, if the conditions below are met. We ll usually provide cover for these members at the same level and on the same terms (but not necessarily at the same cost) as the previous insurer. To do this, we ll need to receive a copy of the insurer s latest letter of acceptance or a declaration Switch Terms. No cover will be provided until we receive a copy of the letter or declaration, unless they have been accepted for their full benefit at ordinary rates. For members accepted for their full benefit at ordinary rates, we ll normally provide cover up to our Free Limit before we receive a copy of the letter or declaration. If the previous insurer s terms do not fall within the terms below we ll consider each case if we re given full details. We ll not agree to provide cover before we receive these details. We ll not need medical evidence for an existing member as long as: cover with the previous insurer was for the full benefit entitlement; the cover was accepted with no special terms attached, or for which an extra premium of no more than 100% of the normal premium was charged; the acceptance terms were issued within the three years immediately before the transfer; and the total value of benefit for the member is not higher than our Free Limit or 250,000. For members over the Free Limit, or whose cover was accepted under our switch terms with special terms attached, we will need satisfactory medical evidence on the first benefit increase over the transferred amount. When cover starts we will give you full details of the requirements relating to medical evidence. 2.3 Early entrants An early entrant is an employee for whom cover is needed before their normal entry date within the eligibility conditions. If the employee is joining the scheme within three months of being employed by you we ll agree cover without any additional requirements. All other early entrants will need to complete a discretionary entrant s declaration form before we can consider providing cover. We may need more evidence before we make a decision Late entrants A late entrant is an employee who didn t join the scheme at their first opportunity and for whom cover is now needed. If the employee is joining the scheme up to six months after their normal entry date within the eligibility conditions, we ll agree cover without any additional requirements. All other late entrants will need to complete a discretionary entrant s declaration form before we can consider providing cover. We may need more evidence before we make a decision. 2.5 What happens if a claim arises before the medical assessment has been completed? From the date we know a member needs to provide medical evidence, we will provide temporary accident cover for the benefit we need medical evidence for. The temporary cover will be provided for a period of 90 days or until we have carried out the assessment, if earlier. We will give you full details of the terms for temporary accident cover. 3 What premiums will you charge for the cover? The premiums we charge will depend on a number of things as well as the amount of cover you need. These include: the age and sex of eligible employees; their type of occupation; where they work; and the claims history if the scheme was previously insured or self-insured (usually needed where there are more than 100 members). There is no minimum premium or extra policy fee. 3.1 How will you work out the premiums? a) For schemes with 10 or more members - Unit Rate basis We will work out a Unit Rate of premium as the cost of providing each 100 of the total benefit to be insured under the policy (the Aggregate Benefit). We will apply that rate to the Aggregate Benefit at the beginning of each policy year. If membership falls below 10, we will change the way we work out the premiums to that set out in b below. We will tell you before we change this. b) For schemes with up to 9 members - Exact Cost basis (also known as Single Premium or Current Cost basis) We will work out premiums for each member from age-related premium rates which we apply to the amount of cover at the beginning of each policy year. If membership increases to 10 or more, we will change the way we work out premiums to that set out in a above. We will tell you before we change this.

9 Your questions answered (continued) 3.2 Will there be any unexpected extra premiums? We will usually guarantee premium rates until the end of the second policy year. We will then review them, following which we will usually guarantee rates for a further two years (as described in the section Risk factors ). If a member has provided us with medical evidence, we may charge an extra premium which reflects the member s state of health or dangerous pastimes. This will be effective immediately, unless you advise us to the contrary in writing within 30 days of the date of our letter advising the extra premium. Then the cover for which the extra premium was to be charged will not be provided. Although the extra premium will apply immediately, you will not have to pay it until the next renewal date. 3.3 What commission is allowed for in the premium? We will pay commission to your adviser as a percentage of each premium you pay - the standard rate is 12%. We can provide for different levels of commission although this will affect the premium we charge. Our quotation will show the rate we have allowed for. 3.4 Is there a discount for good claims history? We take account of past claims history when we work out a Unit Rate and so a good claims history will usually be reflected in the premiums we charge, particularly for larger schemes. 4 How does the scheme accounting work? The policy has a yearly accounting period, and premiums are due in advance, usually either yearly or monthly. Yearly premiums are approximately 2% lower than the total of 12 monthly premiums. You can pay yearly premiums by cheque. You must pay monthly premiums by direct debit. Until we receive accurate information, we will charge approximate premiums. Once we have worked out the accurate premium, you will have to pay, or we will refund, any difference between the approximate and accurate premiums. 4.1 What information do you need for accounting purposes? a) Unit Rate schemes At the start of the policy and at each rate review date you will need to supply a list showing each current member s sex, date of birth, Scheme Earnings (if benefit is related to earnings) and benefit category (if there is more than one). If members spouses or civil partners are covered, you will also need to include, alongside the member s details, their name, sex and date of birth. At any other renewal date, the only information we need is the total number of members and the Aggregate Benefit at that date unless there is a 25% change in membership or total benefit - see Risk factors. If this is the situation you will need to supply the details as set out in the paragraph above. 6 If we are going to adjust premiums (see question 4.2 below), we will need the total number of members and the Aggregate Benefit as at the day before the rate review or renewal date. b) Exact Cost schemes At the start of the policy and at each renewal date you will need to supply a list showing each current member s name, sex, date of birth, Scheme Earnings and benefit category (if there is more than one). If members spouses or civil partners are covered, you will also need to include, alongside the member s details, their name, sex and date of birth. We will also need dates of entry and any daily increases (where included) together with the dates on which any members left the scheme during the policy year. If a member s cover goes over the Free Limit, we will need information on that individual member. There may be other circumstances where we need extra information. 4.2 How are premiums adjusted for members who join, leave or have benefit increases during the policy year? a) Unit Rate schemes These operate on a simplified accounting basis where (unless entry dates and benefit increases are yearly) we adjust the premiums at the end of each policy year based on the assumption that all changes in membership and cover took place midway through the year. Any extra premium or refund will be paid at the beginning of the next policy year. This is generally known as sweep-up accounting. On the other hand, we can make an allowance in the Unit Rate to reflect changes in membership and cover during the policy year. This avoids the need for adjusting premiums at the end of the year unless changes that are not in line with the agreed eligibility conditions or benefit basis have been made. This is generally known as no change accounting. b) Exact Cost schemes We will adjust premiums at the end of each policy year to reflect the actual period covered and the amount of cover provided for each of the members. Any extra premium or refund will be paid at the beginning of the next policy year. 4.3 If the policy is cancelled midyear, will I lose any premiums I have paid in advance? No. We will produce a final account for the cover provided up to the date the policy is cancelled. We will either send you a refund or you will have to immediately pay any premiums you owe us.

10 Your questions answered (continued) 5 How do I make a claim? You and the member will need to fill in a claim form within 30 days of the diagnosis of a critical illness or condition. For total and permanent disability - permanent and irreversible claims, you should tell us about a potential claim after three months of continuous disability. 6 What is not covered? The policy does not cover any illness or condition not listed in question 1.3. For the purposes of this question, insured person means a member or, if insured, their child, spouse or civil partner. There is a pre-existing condition exclusion that means the following: No benefit will be payable for any insured condition which the insured person; has suffered from, or undergone before the date they joined the scheme; or is already suffering from for which a duration period is specified in the insured condition definition (for example six months for Multiple Sclerosis with persisting symptoms) at the date they joined the scheme. If an insured person receives benefit under the policy, we will not pay any further benefit if they again suffer from the same condition, but a claim may be made if they suffer from another insured condition. For the purposes of the above the following are considered to be the same condition: Angioplasty to treat specific conditions of specified severity Aorta graft surgery - requiring surgical replacement Coronary artery by-pass grafts with surgery to divide the breastbone Heart attack of specified severity Heart transplant Heart valve replacement or repair with surgery to divide the breastbone Stroke resulting in permanent symptoms In addition, where the insured person has suffered from any malignant tumours, defined as cancer excluding less advanced cases, then no benefit shall be payable in respect of any subsequent cancer excluding less advanced cases, whether or not this is connected to, or associated with the prior diagnosis of cancer excluding less advanced cases. For total and permanent disability permanent and irreversible we will not pay benefit if the disablement started before the date they joined the scheme. No benefit will be payable for total and permanent disability permanent and irreversible or paralysis of limbs total and irreversible in the following circumstances: the insured person has previously, at any time, suffered from any of the insured conditions; or in the opinion of a medical adviser nominated by Legal & General, the claim has resulted directly from any condition the insured person was known to be suffering from at, or before the date of joining the scheme. We will not pay benefit for any insured condition occurring within two years of an insured person joining the scheme that has resulted directly or indirectly from any related condition. Related conditions include those, on or before the date they joined the scheme, for which the insured person: has received treatment; has suffered symptoms of; has sought advice on; or was aware of. The insured person will be deemed to have suffered, undergone, or have been in the specified duration period of, an insured condition before they joined the scheme whether or not the insured condition had been formally diagnosed. This is subject to a subsequent diagnosis confirming these circumstances. The pre-existing conditions exclusion and related conditions exclusion outlined above are effective at the date cover is provided for the insured person. The pre-existing conditions exclusion and related conditions exclusion will apply to any elective increase in benefit. 7 Can cover be provided for an employee (or equity partner) who is not based in the UK? We will usually cover employees (and equity partners) working abroad as long as they do not form the majority of the scheme membership. We will need full details of any overseas employees (and equity partners) as we may need to change our standard terms and conditions. We will not provide cover until we have set any special terms necessary. Cover for employees (and equity partners) who travel abroad for normal business purposes but who are based in the UK will not usually have any special terms attached. 7

11 Your questions answered (continued) 8 What tax rules apply? Our understanding of the current tax rules for group critical illness cover policies is as follows: The premiums you pay for your employees are tax-deductible and can be offset against your profits for tax purposes. Your premiums will be treated as a benefit in kind for employees whose earnings (including the value of all benefits in kind ) exceed 8,500 a year. So the employees will be taxed on the premiums you pay for them. Income tax will not be due on the lump sum we pay to a member. Premiums which equity partners pay for their own cover (as opposed to those paid for their employees) are not deductible, but the lump sum will be paid tax-free. 9 Can members continue their cover if they leave my employment? Members cannot continue cover at their own expense when they stop working for you. Further information Providing insurance Group Critical Illness Cover policies are provided by Legal & General Assurance Society Limited whose principal office for the purposes of the policies is at: Legal & General House Kingswood, Tadworth Surrey KT20 6EU. Phone: Phone-based Employee Assistance Programme This is a confidential helpline service for our Group Critical Illness cover policyholders. It gives scheme members and their families access to information and advice on health and bereavement. It is free to policyholders and may be used at any time by scheme members and their families. We will provide full details of the service when the policy is set up. 8 Questions and complaints If you have a question or complaint about the policy, you should first speak to the adviser who arranged it for you. If you then need to speak to us, you should send the details of your question or complaint to: Director (Group Protection) Legal & General Assurance Society Limited Legal & General House, Kingswood, Tadworth Surrey KT20 6EU. Phone: If we cannot settle a complaint you may be able to refer it to: Financial Ombudsman Service South Quay Plaza, 183 Marsh Wall, London E14 9SR. Phone: complaint.info@financial-ombudsman.org.uk Website: Making a complaint will not affect your right to take legal action. Compensation If we cannot meet our liabilities, you may be entitled to compensation under the Financial Services Compensation Scheme. You can get more information from the Financial Services Compensation Scheme at: 7th floor, Lloyds Chambers, 1 Portsoken Street, London E1 8BN Phone: enquiries@fscs.org.uk Website: Law The policy will be governed by English law. Under our standard policy, members do not have any rights under the Contracts (Rights of Third Parties) Act 1999, which means that they do not have to be involved in decisions about the insurance provided by the policy. References in this guide to the tax treatment of premiums and benefits are based on our understanding of current law and HM Revenue & Customs practice, which may change. About Legal & General The Legal & General Group, established in 1836, is one of the UK s leading financial services companies. We are one of the UK s top 50 companies in the FTSE 100 Index. Over 5.75 million people rely on us for life assurance, pensions, investments and general insurance plans. The Legal & General Group is responsible for investing over 301 billion worldwide (as at 31 December 2007) on behalf of investors, policyholders and institutions. We are a leading provider of Group Protection cover, and we have a strong commitment to providing excellent standards of service to all our customers. We have based this technical guide on the best practice format recommended by the Group Risk Development Group (GRiD) and the Association of British Insurers.

12 Legal & General Assurance Society Limited, Registered in England No Registered office: One Coleman Street, London EC2R 5AA. A member of the Association of British Insurers W8851 CIC 04/08 H90301