Life insurance quote. Who the policy covers. Your total monthly payment will be: This quote is only valid for 30 days

Transcription

1 Life insurance quote This quote has been prepared for Mr Rick Jones by LifeQuotes4U on 30th April You should read the details of your quote in conjunction with the Key Features in order to make your decision about whether the cover is right for you. The Key Features of this Legal & General life insurance policy are included for your reference. This quote is based on standard terms and the information you have already provided, and it could be subject to further medical underwriting and a final decision by Legal & General. Who the policy covers Name Rick Jones Date of birth 11/12/1976 Gender Male Smoker No Type of benefit Level Term Term 20 years Life Cover 250,000 Total sum assured 250,000 Guaranteed Monthly premium Your total monthly payment will be: The great thing about this policy is that once you have started it, as long as you keep up the monthly payments, regardless of your age, health or lifestyle changes Legal & General cannot increase your price for any reason, this is what they call a guaranteed monthly premium. The total amount you would pay over the term of this policy would be 3, This quote is only valid for 30 days

2 How long is this quote valid for? This quote is valid until 30/05/2013. This quote is based on standard terms and the information you have already provided, and it could be subject to further medical underwriting and a final decision by Legal & General. If you decide to change your cover, your monthly premium and total cover amount may change. If the answers you give on your application mean that Legal & General need to change the terms of the cover they can offer you, then that too will affect the premium. The laws of England and Wales apply to this cover. This cover is not available to customers in the Channel Islands or the Isle of Man Important information This product, if Legal & General agrees to issue it, meets the demands and needs of those who wish to purchase life insurance for protection. This is from the start date until a set period of time in the future. Your policy does not have a cash value at any time. You must read the Key Features included with this document. The quote assumes that: All the details you have provided are correct. If not, this quote may change; You are a resident of the United Kingdom. The laws of England and Wales will apply to this policy. Once the policy has started, Legal & General will send out all the full policy documents. If anything changes before the start date of your policy, please contact us and let us know. How much does our service cost? You don't have to pay us a penny for our service. Once you have started your policy, Legal & General will pay us commission.

3 WHAT IS LIFE INSURANCE? Life Insurance is a way of providing financial security to you and/or your dependants if you were to die. Traditionally, the need for Life Insurance is greater during the Vulnerable Years. These are the early years of marriage, or long term relationships, or when you start a family. The need is greater because... - You might have only one income between the two of you and relatively high living costs - The income that you're earning may not be so high at this stage of your life - If either of a couple dies, you're likely to need a lot of protection to preserve the family's standard of living for a long period - There may be little spare income to pay for Life Insurance as most income is needed to get by Consequently, low-cost temporary products such as Term Assurance, can often meet your immediate protection needs. It is often taken out to cover your mortgage and other debts you may have. This ensures your debts will be cleared if you die, so your dependents don't need to worry about them again. This is called Mortgage Protection. People often take out additional life insurance to ensure their dependents get an income if they are no longer around. It's a great help, at such a difficult time, if the mortgage is cleared but how will your family get by without an income? A separate policy can provide an income, meaning your family's standard of living can continue as before. WHAT IS TERM ASSURANCE? Term Assurance pays a lump sum if you were to die within a pre-determined time frame or The Term. Initially you will need to decide how much cover you need and over what period you need it for. Your decisions here, will affect how much it costs. Things that will increase the cost of Life Insurance are... Your age: the older you are, the more expensive cover is

4 The amount of cover: the more cover you have, the higher your premium will be The term: the longer the term is, the higher the premiums If you smoke: that's if you've smoked in the last 12 months If you die within the term... If you were to die within the term of the policy, the insurance company pays the lump sum to your dependants. Premiums will stop at this stage. If you survive past the term... Well, the bad news is you get nothing back; the good news is that you're still alive!! If this happens the whole contract comes to an end and you pay no further premiums. Because of the way it works, it keeps the cost to a minimum and keeps things really simple... Term Assurance usually offers the cheapest way to buy life insurance where the need for cover is likely to last for only a certain length of time. WHAT IS LEVEL TERM ASSURANCE? Level Term Assurance is where... The lump sum that you get if you die within the term stays the same throughout the entire length of the plan. The premium also stays the same; it is guaranteed to do so if you use LifeQuotes4U. This type of plan may be appropriate for you if you have an Interest Only Mortgage, where you are paying the interest only and therefore what you owe your lender always stays the same. It may also be appropriate where you want your dependants to receive a lump sum if you die. They could then use the capital to buy a house, pay off their mortgage or use it to provide an income... hopefully not to buy a super-car though!! WHAT IS DECREASING TERM ASSURANCE? Decreasing Term Assurance is where The lump sum that you get if you die within the term decreases throughout the length of the plan. - The premium also stays the same; it is guaranteed to do so if you use LifeQuotes4U.

5 It is designed to meet your needs if you have a decreasing liability, such as a repayment mortgage. WHAT IS MORTGAGE PROTECTION? Mortgage Protection is a type of Decreasing Term Assurance. If you have a repayment mortgage the amount you owe is constantly being reduced throughout the term. So, the lump sum that would be paid out on death reduces in line with your mortgage. This means your dependants will always be able to clear the mortgage if you die. Mortgage Protection is cheap as the amount the insurance company may have to pay out is always getting smaller, this means they offer the cover for lower premiums. WHAT IS FAMILY INCOME BENEFIT? Family Income Benefit pays your dependents an income if you were to die within the selected term. You choose the amount of income that will be paid and how long it will be paid for, the term. It is often taken out by couples with young children to provide sufficient income until their children become financially independent, such as when they leave university. WHAT IS JOINT COVER? Joint Cover is where only one policy covers two people (or sometimes more); normally a married couple... - The policy will pay out on the first death if it occurs within the term - The plan then stops, leaving the surviving person with no cover on their own life - There's nothing stopping the surviving person getting more cover at that stage, however it may be a lot more expensive (or not available at all) as they are older and may have developed medical issues Couples often take out one plan each; this type of plan is called a Single Life plan. The advantage of doing it this way is that, should one policy stop/pay out, the other can still run unaffected. Surprisingly, the cost of two single life policies is only approx 10% higher than a joint life plan.

6 WHAT ARE GUARENTEED PREMIUMS? Guaranteed premiums are guaranteed not to go up throughout the entire length of a policy. LifeQuotes4U only offer guaranteed premiums. WHAT DOES INDEX-LINKED MEAN? When a policy is Index-Linked the payout is usually designed to keep up with inflation. It is usually an option when applying for level term assurance policies. WHAT IS TERMINAL ILLNESS BENEFIT? A policy with Terminal Illness cover will pay out the death benefit if, due to a terminal illness, you are given less than 12 months to live. The policy will stop once the payout is made. Some policies will not payout if prognosis is given in the last 12 months of the term.

7 How do we discount so much? Life Insurance companies tend to be large multinational organisations with huge operational and overhead costs. These costs include Staffing, Marketing and Administration which often run into millions of pounds a year. These companies are therefore happy and encourage companies like Protected to handle these 3 key costs on their behalf and in return for taking these costs over, they pay us commission. The commission they pay us is not added onto your premium, but removed from their 'revenue' and passed on to us. They are happy to generate a lower return on you as a customer, as it hasn't cost them as much to acquire you (often referred to as the Customer Acquisition Cost). We discount heavily because we take less commission from the insurers and pass the rest of this commission back to you as a saving on your monthly premium (This is why we are cheaper than going to the insurer directly). How can we afford to do this? We simply run as efficiently as possible whilst maintaining the best customer service levels achievable. We streamline our marketing costs and administration processes and we don't get caught up in corporate 'red tape' or inefficiencies. The only area we don't cut back on is staff training and customer service because we value you as a customer and hope you will return to Protected in the future for your other financial services needs.

8 What happens next? One of our highly trained policy Makers will be in touch shortly to discuss your application and answer any questions you may have. The next steps will be: The Application LifeQuotes4U will provide you with your own Policy Maker who will submit your application for underwriting this is where the insurer will assess your answers before updating us with one or more of the following decisions: Accepted Standard Terms The insurer is happy with the information you have provided and will accept you at the quoted premium per month. Your policy will be ready to start immediately. Loaded Acceptance Based on the information you have provided the insurance company will accept you with a higher premium due to any existing medical conditions or your family history. Exclusion Based on the information you have provided the insurance company will accept you but may exclude cover on a particular medical condition if them deem the risk too high. This is a very rare occurrence as if there is anything seriously wrong the insurer will most likely decline the policy. Decline If your medical history does not meet the insurer s criteria for life insurance then no terms will be offered. Protected will speak to you regarding your options in this case and look at other options available. Postpone If you have any upcoming medical investigations, or are yet to receive the all clear from an existing condition, the insurer may defer their decision until they can access the application with all the information. LifeQuotes4U will call you again when the insurer is ready to proceed. Further Underwriting Required This means the insurer has not accepted your application, but would first like to gather more information before providing a decision. Most commonly the insurer will ask for permission to write to your doctor so they can review your medical records; this is called a GPR (General Practitioners Report). This gives both you and the insurer the peace of mind that everything has been disclosed and terms are offered accordingly. In some instances where you have pre-existing medical conditions or a high cover amount, then the insurer may ask for a nurse screening as well as the GPR. LifeQuotes4U will manage all the administration and manage the appointments for you.

9 What happens next? Having this information at hand will speed up the application process for you and allow the insurer to give us a more accurate decision straight away. Name, address and contact number of your current GP Your Direct Debit details Details of any prescription medication you may have taken in the last 12 months If you have diabetes, high cholesterol or high blood pressure your latest reading will often help us reduce your premium if they are all under control

10 After the Application Once your application has been submitted to the insurer we will manage all the administration for you via our team of Policy Makers Their sole role is to update you throughout the underwriting process and to answer any questions you may have. Many customers have let us know how valuable our Policy Makers have been to their application as we will ensure the process is as stress free for you as possible. How we get paid We search 10 of the UK s top life insurance companies to find you the most competitive price based on your age and the amount of insurance you would like. We will then manage your entire application including all the paperwork, legal requirements and can also set up a trust for you to ensure the money is paid to your loved ones with no inheritance tax. Many companies will charge you a fee for arranging your life cover but we do not. You pay nothing for our services even if your policy is not started. We are paid commission from the insurance company once your policy is in force. Life insurance companies rely on us to handle all the paperwork for them, speak to your GP and write your policies into trust and we employ the staff to complete this.

11 About us To follow Our Happy Customers To follow