Mortgage Term Plan Policy Conditions

Transcription

1 Mortgage Term Plan Policy Conditions

2 Mortgage Term Plan Policy Conditions CONTENTS 1 COVER PROVIDED This section outlines the benefits that are provided by your Policy. 2 EXCLUSIONS This section outlines circumstances in which benefits will not be paid. 3 JOINT LIFE POLICIES This section applies if your Policy is effected in joint names. 4 PREMIUM PAYMENTS This section sets out how the premiums are to be paid. 5 ALTERATIONS This section sets out how and when your policy can be altered. 6 GENERAL CONDITIONS 7 CLAIMS This section outlines how to make a claim and the Company's requirements to assess the claim. 8 TAX This section outlines any potential tax liability payable in respect of your Policy's benefits. 9 THE POLICY This section defines the Policy. 10 DEFINITIONS This section defines the insurance terms used in these conditions.

3 SECTION 1. COVER PROVIDED This section sets out all the benefits available under your Policy. These conditions should be read in conjunction with the Policy Schedule. The specific benefits that apply to your Policy are specified on the Policy Schedule, subject to any subsequent endorsements to the Policy. Each of the individual benefit sections below outlines (i) the amount of the benefit provided (ii) when the benefit will be payable Any exclusions that apply to the payment of the benefit are set out in Section 2. If a benefit is not specifically mentioned on the Policy Schedule, that benefit is not provided. A. Death Benefit The amount payable by the Company on the death of the Life Assured is the Death Benefit then in force at the date of death. The Death Benefit chosen at the outset by the policyholder decreases at each calendar month from the Commencement Date of the Policy in line with a repayment mortgage repayable monthly in arrears at an interest rate as specified on the quotation illustration. The above payment is subject to the following conditions: (i) Exclusions set out in Section 2 (ii) The joint life conditions in Section 3 (iii) The claim requirements in Section 7 (iv) The taxation requirements set out in Section 8 B. Serious Illness Cover This benefit shall only apply if so indicated on the Policy Schedule. The amount payable by the Company shall be the Serious Illness Benefit then in force at the date of receipt of satisfactory proof of the occurrence of the event. The Serious Illness Benefit chosen at the outset by the policyholder decreases at each calendar month from the Commencement Date of the Policy in line with a repayment mortgage repayable monthly in arrears at an interest rate as specified on the quotation illustration. The Serious Illness Benefit will be payable subject to the following conditions: (i) The Life Assured must contract the serious illness after the Commencement Date of the Policy. (ii) The Life Assured must survive 14 days from the date of diagnosis of the serious illness. (iii) The Policy is in force. (iv) The exclusions set out in Section 2. (v) The joint life conditions set out in Section 3. (vi) The claim requirements set out in Section 7. (vii) The taxation requirements set out in Section 8. On payment of the Serious Illness Benefit, the Policy will terminate except where the payment is solely in respect of the Children's Serious Illness Cover. A serious illness is the diagnosis, being verified by the Company s Chief Medical officer, of 1. Heart Attack "Being the death of a portion of the heart muscle due to inadequate blood supply, that has resulted in all of the following evidence of acute myocardial infarction: typical chest pain; new characteristic electrocardiographic changes; the characteristic rise of cardiac enzymes, troponins or other biochemical makers; where all of the above shows a definite acute myocardial infarction. Other acute coronary syndromes, including but not limited to angina, are not covered under this definition." 2. Stroke "A cerebrovascular incident resulting in permanent neurological damage. Transient ischaemic attacks are specifically excluded." 3. Cancer "Being the presence of any malignant tumour characterised by the uncontrolled growth and spread of malignant cells and the invasion of tissue. The term cancer includes leukaemia and Hodgkins Disease but the following are excluded: All tumours which are histologically described as pre-malignant, as non-invasive or as cancer in situ. All tumours of the prostate unless histologically classified as having a Gleason score greater than 6 or having progressed to at least TNM classification T2N0M0.

4 Mortgage Term Plan Policy Conditions All forms of lymphoma in the presence of any Human Immunodeficiency Virus. Kaposi's sarcoma in the presence of any Human Immunodeficiency Virus. Any skin cancer other than invasive malignant melanoma." 4. Coronary Artery By-Pass Surgery "Being the undergoing of open heart surgery on the advice of a Consultant Cardiologist of a major Irish or UK hospital to correct narrowing or blockage of one or more of the coronary arteries with by-pass grafts but excluding balloon angioplasty, laser relief or any other procedures." 5. Aorta Graft Surgery "Being the undergoing, on the advice of a Consultant Cardiologist of a major Irish or UK hospital, of surgery for disease of the aorta needing excision and surgical replacement of a portion of the diseased aorta with a graft. For this definition, aorta means the thoracic and abdominal aorta but not its branches." 6. Heart Valve Surgery "Being the undergoing, on the advice of a Consultant Cardiologist of a major Irish or UK hospital, of open heart surgery from medical necessity to repair or replace one or more heart valves." 7. Balloon Valvuloplasty "Being the actual insertion, on the advice of a Consultant Cardiologist of a major Irish or UK hospital, of a Balloon Catheter through the orifice of one of the valves of the heart and the inflation of the balloon to relieve valvular abnormalities." 8. Major Organ Transplant "Being the actual undergoing as a recipient of, or confirmation of acceptance onto an official Irish or UK waiting list for, a necessary transplant of a heart, lung, liver, pancreas or bone marrow." 9. Pulmonary Artery Surgery "Being the actual undergoing of surgery on the advice of a consultant cardiothoracic surgeon of a major Irish or UK hospital for a disease of the pulmonary artery to excise and replace the diseased pulmonary artery with a graft." 10. Kidney Failure "Being end stage renal failure presenting as chronic irreversible failure of both kidneys to function, as a result of which either regular renal dialysis or renal transplant is initiated." 11. Paralysis "Being the total irreversible loss of muscle function or sensation to the whole of any two limbs as a result of injury or disease. The disability must be permanent and supported by appropriate neurological evidence." 12. Loss of Two or more Limbs "Being the permanent physical severance of two or more limbs from above the wrist or ankle joint." 13. Multiple Sclerosis "Being a definite diagnosis by a Consultant Neurologist of Multiple Sclerosis which satisfies all of the following criteria: There must be current impairment of motor or sensory function, which must have persisted for a continuous period of at least six months. The diagnosis must be confirmed by diagnostic techniques current at the time of the claim." 14. Coma "Being a state of unconsciousness with no reaction to external stimuli or internal needs, persisting continuously with the use of life support systems for a period of at least 96 hours and resulting in permanent neurological deficit. Coma secondary to alcohol or drug misuse is not covered. Coma in the presence of HIV infection is excluded." 15. Severe Burns "Being third degree burns covering at least 20% of the body's surface area." 16. Benign Brain Tumour "Being a non-malignant tumour in the brain resulting in permanent deficit to the neurological system. Tumours or lesions in the pituitary gland are not covered." 17. Motor Neurone Disease "Being the definite diagnosis by a consultant neurologist of a major Irish or UK hospital where there are obvious neurological signs. The Company may require that this diagnosis be confirmed by one or more consultant neurologists nominated by the Company." 18. Blindness "Being the total, permanent and irreversible loss of sight in both eyes of the Life Assured. The Company may require confirmation from an appropriate consultant physician of a major Irish or UK hospital,

5 that the loss of sight is both total and irreversible. The Company may also require that this confirmation be supported by one or more consultant physicians nominated by the Company." 19. Loss of Speech "Being the total, permanent and irreversible loss of the ability to speak as a result of physical injury or disease." 20. Loss of Hearing "Being the total, permanent and irreversible loss of hearing in both ears as confirmed by an appropriate consultant physician of an Irish or UK hospital." 21. Bacterial Meningitis "Being bacterial meningitis causing inflammation of the membranes of the brain or spinal cord resulting in permanent neurological deficit. The diagnosis must be confirmed by a Consultant Neurologist. Bacterial meningitis in the presence of HIV infection is excluded. All other forms of meningitis including viral are not covered." 22. Major Head Trauma "Being accidental injury to the head resulting in residual brain damage. There must be permanent neurological deficit causing significant functional impairment as defined by a Consultant Neurologist using standard measures of head injury (for example, the insured must score 5 or less on the Eight Point Glasgow Outcome Scale for Head Injuries)." 23. Chronic Liver Disease "Being end stage liver failure due to cirrhosis and resulting in all of the following: (i) permanent jaundice (ii) ascites (iii) encephalopathy Liver disease secondary to alcohol or drug misuse is excluded." 24. Systemic Lupus Erythematosus "Being the unequivocal diagnosis by a Consultant Physician of systemic lupus erythematosus with cardiac, central nervous system or renal impairment. Discoid lupus is specifically excluded." 25. Creutzfeld-Jacob Disease "Being the unequivocal diagnosis of Creutzfeld-Jacob Disease made by a Consultant Neurologist and requiring the permanent supervision or assistance of a third party." 26. AIDS as a result of a needlestick injury "Being infection by any Human Immunodeficiency Virus (HIV) or suffering from Acquired Immumodeficiency Syndrome (AIDS) acquired by a medical practitioner, or any other person employed in a medical facility, or prison officer, garda, fire officer or ambulance officer in the course of carrying out his normal employment related duties. The infection must be as a result of contact with a HIV infected patient or HIV infected medical instrument. The incident involving such contact must have occurred after the date of commencement, and must have been reported, investigated and documented in accordance with established occupational procedures for the facility in which it occurred. The Life Assured must have been tested immediately after the incident and shown not to have antibodies of the Human Immunodeficiency Virus." 27. AIDS as a result of a blood transfusion "Being infection by any Human Immunodeficiency Virus (HIV) or suffering from Acquired Immumodeficiency Syndrome (AIDS) as a result of a blood transfusion carried out in Ireland or the United Kingdom after the commencement date of the Policy. The institution which provided the transfusion must admit liability. The Life Assured must not be a haemophiliac." 28. AIDS as a result of a physical assault "Being diagnosis and certification of infection by any Human Immunodeficiency Virus (HIV) or Acquired Immumodeficiency Syndrome (AIDS) in the following circumstances: The infection is caused by a physical assault on the life assured in the Irish State, provided that (i) The assault must have occurred at least 26 weeks after the effective date of the Policy. (ii) There must be evidence that the infection occurred as a result of an assault on the Life Assured. (iii) The assault must have been reported to the Garda Síochána within 24 hours of its occurrence. (iv) The life assured must have undergone a blood test within 5 days of the assault which caused the infection indicating the absence of HIV or antibodies to such a virus and a further blood test within twelve months of the assault indicating the presence of HIV or antibodies to such a virus. All blood tests must be processed

6 Mortgage Term Plan Policy Conditions by a recognised hospital laboratory in Ireland." 29. Latter Stage Alzheimers Disease "Being a global impairment of brain function such that permanent supervision or assistance by a third party is required. The diagnosis must be made by an appropriate consultant who must be satisfied that there is no other discernible cause. Cover ceases at age 65 on this benefit." 30. Latter Stage Parkinsons Disease "Being the unequivocal diagnosis of Parkinson's disease made by a Consultant Neurologist and requiring the permanent supervision or assistance of a third party. Only idiopathic Parkinson's disease is covered. All other forms of parkinsonism are excluded. Cover ceases at age 65 on this benefit. Parkinson's Disease secondary to alcohol or drug misuse is not covered." 31. Severe Rheumatoid Arthritis "Being widespread joint destruction with major clinical deformity of three or more of the following joint areas: hands; wrists; elbows; cervical spine; knees; ankles; metatarsophalangeal joints in the feet. The severity of the disease shall be such that the Life Assured will have been disabled for a continuous period of at least 6 months from performing their usual occupation and any other to which suited by education, training or experience. At the Company's discretion confirmation of the diagnosis and the degree of disability may be required via an independent medical examination by a specialist physician appointed by the Company." 32. Chronic Lung Disease (including severe Emphysema) "Being severe restrictive lung disease where there is dyspnoea at rest with markedly abnormal pulmonary function tests. The diagnosis must be evidenced by all of the following: (i) The need for continuous daily oxygen therapy (ii) Vital capacity being less than 50% of normal (iii) FEV1 (Forced Expiratory Volume at 1 second) being less than 50% of normal" 33. Muscular Dystrophy "Being a hereditary muscular dystrophy confirmed by a Consultant Neurologist resulting in the inability to perform, without the continual assistance of another person, three or more of the Activities of Daily Living defined in the "Loss of Independent Existence" definition." 34. Loss of Independent Existence Being confirmation by a consultant physician of loss of independent existence before age 65, resulting in a permanent inability to perform at least 3 of 5 specified Activities of Daily Living without the assistance of another person. The Activities of Daily Living are defined below. For the purposes of this benefit, the word permanent shall mean beyond the hope of recovery with current medical knowledge and technology (in this context, the term "current" refers to medical knowledge current at the date of claim). The Activities of Daily Living are: 1. Washing - ability to take a bath or shower or otherwise maintain adequate personal cleanliness, with or without the aid of special equipment. 2. Dressing - dressing and undressing, including putting on and taking off medically necessary surgical appliances usually worn. 3. Feeding - eating and drinking once food or drink has been prepared and made available. 4. Toileting - ability to use the toilet and to maintain an adequate level of personal hygiene. 5. Transferring - moving in and out of a chair or bed, with or without the aid of equipment. 35. Aplastic Anaemia "Being bone marrow failure which results in anaemia, neutropenia and thrombocytopenia and requires as a minimum one of the following treatments: (i) Blood product transplantation (ii) Bone marrow transplantation (iii) Immunosuppressive agents (iv) Marrow stimulating agents" 36. Encephalitis "Being the severe inflammation of the brain substance which results in significant and permanent neurological sequelae, causing at least 25% impairment of function, as defined by the Guide to the Evaluation of Permanent Impairment, 3rd Edition of the American Medical Association or its equivalent. Encephalitis in the presence of HIV infection is excluded." 37. Cardiomyopathy "Being the unequivocal diagnosis by a consultant cardiologist of a cardiomyopathy resulting in irreversible impaired ventricular function and marked limitation of physical activity with the insured unable

7 to progress beyond stage two of a treadmill exercise test using the standard Bruce protocol. Cardiomyopathy directly related to alcohol or drug misuse is excluded." 38. Children's Serious Illness Cover "Being the diagnosis of any of the serious illnesses as apply to the Serious Illness Cover on the Life Assured and subject to the same policy conditions. This benefit applies to any naturally or legally adopted child of the Life Assured aged between 1 and 18 years (cover ceases on the child reaching his/her 18th birthday). The maximum benefit payable will be the lesser of 25,000 or 50% of the sum assured. The maximum amount payable in respect of any one child will be 25,000 across all policies." 39. Overseas Surgery Benefit "This benefit will be payable if the Life Assured or any natural or legally adopted child of the Life Assured, aged between 1 and 18 years (cover ceases on the child reaching his/her 18th birthday), requires an immediately necessary surgical procedure or operation arising from one of the Serious Illnesses specified in this section which cannot be performed in any hospital in Ireland. On performance of the surgery, an amount of 12,500 will be payable. The maximum amount payable under this Policy or to any one life is 12,500. This benefit is payable in addition to the Serious Illness Benefit on the Policy." 40. Benefit Prepayment "On statement by a consultant physician that the Life Assured or any natural or legally adopted child of the Life Assured aged between 1 and 18 years (cover ceases on the child reaching his/her 18th birthday) requires one of the following surgeries for medical reasons, and on confirmation that the Life Assured or any natural or legally adopted child of the Life Assured aged between 1 and 18 years (cover ceases on the child reaching his/her 18th birthday) is on the waiting list for the required surgery, 50% of the Serious Illness Cover will be prepaid to a maximum of 38,000 or 19,000 for any natural or legally adopted child of the Life Assured. The Serious Illness Cover then in force will be reduced by the amount of the prepayment. The surgeries which qualify for this benefit are Coronary Artery By-Pass Surgery, Heart Valve Surgery, Aorta Graft Surgery or Pulmonary Artery Surgery as defined herein." 41. Permanent and Total Disablement "The permanent inability, as a result of illness or injury contracted after the Commencement Date of the Policy, to perform three of the first six activities listed below OR the seventh activity only, without the help of another person but with the use of appropriate assistive aids and appliances. In addition, the claimant must be under the care and attention of a specialist appropriate to their condition. Entitlement to this benefit ceases on the Life Assured's 65th birthday. 1. Walking - defined as the inability to walk more than 200 metres without stopping or suffering severe discomfort. 2. Kneeling and bending - defined as the inability to kneel or bend as if to pick something up from the floor and straighten up again. 3. Use of pen/pencil/keyboard - defined as the lack of physical ability to use a pen, pencil or keyboard with either hand or any artificial aids. 4. Rising - defined as the inability to rise from sitting in an upright chair with a back but no arms without the help of another person. 5. Lifting and Carrying - defined as the inability to pick from the ground and carry for 3 metres a 2.5kg weight with either hand. 6. Vision - vision (as corrected by spectacles, contact lenses or other aids) is defined as the inability to see well enough to read a large print book namely 16 point typeface. 7. Mental Agility - mental incapacity which has failed to respond to optimal treatment and requires the need for continuous psychotrophic medication, professional psychiatric supervision and care, and results in persistent severe mental dysfunctioning." C. Terminal Illness Benefit Entitlement to the Terminal Illness Benefit shall arise, if in the opinion of a specialist consultant in a major hospital in Ireland and with the agreement of the Company's Chief Medical Officer, the Life Assured is suffering from a disease process which is likely to lead to death within 12 months of the notification. The likely date of death must be prior to the expiry date of the Policy. The benefit will not be payable if diagnosis occurs during the last year of the Policy's original term.

8 Mortgage Term Plan Policy Conditions The benefits payable shall be 70% of the Death Benefit in force on the day after receipt of notification of the terminal illness of the Life Assured, with the balance paid on actual death provided the Policy is maintained in force. The Death Benefit chosen at the outset by the policyholder decreases at each Calendar month from the Commencement Date of the Policy in line with a repayment mortgage repayable monthly in arrears at an interest rate as specified on the quotation illustration. The benefit will be payable subject to the following conditions (i) The exclusions set out in Section 2 (ii) The joint life conditions set out in Section 3. (iii) The claim requirements set out in Section 7. (iv) The taxation requirements set out in Section 8. D. Guaranteed Insurability Options This benefit is automatically granted to lives under age 55 who are accepted on Standard Terms where no policy exclusions have been applied. It allows increases to Life or Accelerated Serious Illness cover as appropriate to the Policy without further underwriting of the lesser of 50% of the Initial Sum Assured or 200,000 if any of the following events occur: (i) Marriage (ii) Birth or legal adoption of a child (iii) Purchase of a new principal private residence in Ireland on this event the maximum increase in cover is limited to the increase in the loan amount relative to the previous mortgage on the principal private residence, subject to the limits above. Where there is more than one Life Assured on a Policy both lives must meet all conditions outlined in these conditions for the Guaranteed Insurability Options to apply to the Policy. In order for an increase in cover to be made under this benefit the following criteria must be met: (i) The Policy must be in force both at the time the event occurs and at the time the request is received (ii) The Life Assured must not have been diagnosed with a terminal illness (iii) The Life Assured must not have claimed for or been diagnosed with a serious illness (iv) The request to increase the cover must be in writing and received within three months of the occurrence of the event. It is the responsibility of the Life Assured to ensure receipt of notice by the Company (v) The Life Assured must be under age 55 when the request is received (vi) Evidence that the event has occurred must be provided by the Life Assured. The evidence required is: (i) On marriage - a certified copy of the marriage certificate, (ii) On birth or adoption of child - a certified copy of the birth or adoption certificate (iii) On purchase of a new principal private residence - a copy of the loan offer. (vii) The Life Assured(s) must agree to pay the additional premium for the increase in benefits. The amount of the increase in the premium will be determined taking into account, inter alia, the following factors: Increase in benefits. Age of the Life Assured(s) at the time of the benefits increase. Term outstanding on the Policy at the time of the benefits increase The option may be exercised more than once over the duration of the policy but the total increase in cover across all options over the life of the policy is the lesser of 200,000 or 50% of the Initial Sum Assured stated in the Policy Schedule. If a life assured has the same or similar options under other policies held with Canada Life, then the maximum total increase across all policies is 200,000. E. Mortgage Repayment Benefit This benefit applies only if it is specified on the Policy Schedule. The monthly benefit will be the monthly Mortgage Repayment Benefit stated on the Policy Schedule, subject to any subsequent endorsements. However, this amount cannot exceed 50% of the gross monthly salary of the Life Assured claiming the benefit and where two lives are claiming the benefit under a joint life policy, the amount cannot exceed 50% of their combined gross monthly salary. If one life on a joint life policy has an accident, the benefit is only payable

9 in respect of that life and is limited to 50% of their individual gross monthly salary. The onus falls entirely on the policyholder(s) to inform the Company of the amount of the monthly Mortgage Repayment Benefit required. Should their mortgage repayments increase due to interest rates or for any other reason, the policyholder(s) must ensure that their benefit remains up-to-date. The Company will only pay out the amount for which the person is insured and no more. The benefit will be paid in monthly installments for the period of disability, to a maximum of 52 weeks over the lifetime of the policy per each Life Assured, subject to the conditions specified below. The benefit will not be paid for the first 4 weeks of disability. Entitlement to Mortgage Repayment Benefit will arise if: Disability arises as a direct result of an injury sustained in an accident. This means that the injury must be caused by external, violent and accidental means and must have resulted in a visible bruise or wound. Injuries to muscles, ligaments and other soft tissue are only covered if they are caused by impact with a foreign object. Disability as defined above must be independent of all other causes and must be confirmed by the Company s Chief Medical Officer. The accident in question must have occurred after the commencement date of the policy but before the Life Assured s 60th birthday and must be preventing or have prevented the Life Assured concerned from carrying out the duties pertaining to his normal gainful occupation. The Life Assured must not be carrying out any other gainful occupation during the period in which the Mortgage Repayment Benefit is payable. In the event that both Lives Assured have a Mortgage Repayment Benefit, and both suffer accidents that simultaneously qualify for payment of this benefit, the sum of the monthly Mortgage Repayment Benefits payable to each Life Assured, as calculated at the time of making the claim, cannot exceed the Lives Assured s actual monthly mortgage repayment. This benefit will be payable subject to the following conditions: (i) The exclusions set out in Section 2. (ii) The joint life conditions in Section 3. (iii) The claim requirements in Section 7. (iv) The taxation requirements set out in Section 8. SECTION 2. EXCLUSIONS A. Death Benefit The Death Benefit will be adjusted as set out below if the claim arises due to the following: (i) If the Life Assured dies as a result of suicide or self-inflicted injury within one year of the Commencement Date (or the date on which the Policy was reinstated) or if the Life Assured dies, at any time during the lifetime of the Policy as a result of participation in any criminal act, whether convicted or not, the Death Benefit shall be the amount of premiums paid up to the date of death. (ii) If the Life Assured dies as a result of suicide or self-inflicted injury within one year of the date of the exercise of the Guaranteed Insurability Options or other increase in the Death Benefit permissible under the terms of the Policy, the Death Benefit shall be the sum of: (a) the Death Benefit calculated as if the increase in the Death Benefit had not occurred and (b) the refund of the additional premium(s) paid since the date of the increase in the Death Benefit. except that where a bona fide interest has been acquired by a third party (other than a husband, wife or one of the next of kin or beneficiary of the estate of the deceased Life Assured) for valuable consideration, and written notice of such interest has been received by the Company prior to the death of the Life Assured, the Company shall be liable for the lower of the Death Benefit and the interest of that third party. B. Serious Illess Cover The Serious Illness Benefit will not be payable if the following applies: (i) If the Life Assured was not resident in Ireland at the Commencement Date or remains outside the countries of the European Union: understood to mean the states of the European Union (at the Commencement Date of the Policy), Norway, Australia, Canada, New Zealand, Switzerland, USA, Hong Kong, Saudi Arabia, Japan, South Africa, Singapore and Iceland for more than 13 weeks in any 12 consecutive calendar months. (ii) If any serious illness claim is made as a result

10 Mortgage Term Plan Policy Conditions of participation in any criminal act, whether convicted or not. The Children s Serious Illness Benefit will not be payable under this policy if in the opinion of our Chief Medical Officer a claim is made for a serious illness prior to the child attaining age 1 or prior to the legal adoption / guardianship of the child by you or where: (i) the condition is familial or congenital (ii) the condition existed before the cover for the child started whether symptoms were present or not. Neither the Permanent & Total Disablement Benefit nor the Loss of Independent Existence Benefit will be payable if the following apply: (i) If the Life Assured was not resident in Ireland at the Commencement Date or remains outside the countries of the European Union: understood to mean the states of the European Union (at the Commencement Date of the Policy), Norway, Australia, Canada, New Zealand, Switzerland, USA, Hong Kong, Saudi Arabia, Japan, South Africa, Singapore and Iceland for more than 13 weeks in any 12 consecutive calendar months. (ii) Disability is caused by specific events listed in Section 2 E. C. Terminal Illness Benefit Acquired Immunodeficiency Syndrome (AIDS) or infection by any Human Immunodeficiency Virus (HIV) is specifically excluded and not covered under this definition. D. Mortgage Repayment Benefit The Mortgage Repayment Benefit will not be payable if a claim arises as a result of the following: (i) The consequences of intentional self-injury, the taking of alcohol or drugs (other than as directed by a registered medical practitioner) or participation in any criminal act whether convicted or not. (ii) The consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, or active participation in riot or civil commotion. (iii) Bodily injury sustained while engaging in any hazardous pursuit including but not limited to mountaineering, motor sport, private aviation and scuba-diving. (iv) The failure of the Life Assured to seek or follow medical advice. (v) Acquired immunodeficiency syndrome (AIDS) or infection by any human immunodeficiency virus (HIV), save as set out above. (vi) Disability after the date on which the Life Assured would normally retire or have retired but for disability, regardless of when disability commenced. (vii) If the Life Assured was not resident in Ireland at the Commencement Date or remains outside the countries of the European Union: understood to mean the states of the European Union (at the Commencement Date of the Policy), Norway, Australia, Canada, New Zealand, Switzerland, USA, Hong Kong, Saudi Arabia, Japan, South Africa, Singapore and Iceland for more than 13 weeks in any 12 consecutive calendar months E. Specific Exclusions Permanent and Total Disablement Benefit and the Loss of Independent Existence Benefit will not be paid if any of the following apply: (i) The consequences of intentional self-injury, the taking of alcohol or drugs (other than as directed by a registered medical practitioner) or participation in any criminal act whether convicted or not. (ii) The consequences of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, or active participation in riot or civil commotion. (iii) Bodily injury sustained while engaging in any hazardous pursuit including but not limited to mountaineering, motor sport, private aviation and scuba-diving. (iv) Any form of aerial flight other than as a fare paying passenger on a regular public airline. (v) The failure of the Life Assured to seek or follow medical advice. (vi) If the Life Assured is suffering from any acquired immunodeficiency syndrome (A.I.D.S.) or is infected by any human immunodeficiency virus (HIV).

11 SECTION 3. JOINT LIFE POLICIES If more than one Life Assured is named on the Policy Schedule then references in these conditions to the Life Assured shall be held to mean either Life Assured subject to the following provisions: (i) When entitlement to a Death Benefit or a Serious Illness Benefit arises under Section 1 in respect of either of the Life Assured, the Company shall pay the benefit then in force in respect of that Life Assured. The Policy will then terminate. (ii) If the policyholder is the Life Assured jointly any amounts payable under the Policy are payable to the Life Assured jointly or to the survivor of the Life Assured or the Executors, Administrators or Assigns of the survivor of the Life Assured at the Head Office of the Company. (iii) In order for Guaranteed Insurability Options to apply to a joint policy, both of the Life Assured will need to meet all criteria (See Section 1.D.). SECTION 4. PREMIUM CONDITIONS A. Payment of Premiums (i) The premium consists of : (a) the initial premium as shown on the Policy Schedule, and (b) the amount of any additional premiums payable for any increase in cover under the Guaranteed Insurability Options as described in Section 1.D., and (c) the amount of any additional premiums payable on alteration of the Policy within 6 months of the Policy Commencement Date as described in Section 5. (ii) Premiums are payable by direct debit or by such other method as may be acceptable to the Company on the Commencement Date and at such other intervals thereafter as indicated on the Policy Schedule. An alternative method of payment may be required by the Company if the current method is found to be unsatisfactory. Subject to the other terms of the Policy, premiums continue to be payable up to and including the due date of Death, Serious Illness (or Disability if applicable) of the Life Assured. It is the responsibility of the policyholder to ensure that all premiums (including those payable by direct debit) are received by the Company. B. Period of Grace (i) Thirty days of grace shall be allowed for the payment of each premium. If benefits become payable due to the Death, Serious Illness (or Disability if applicable) of the Life Assured, or the Mortgage Repayment Benefit becoming payable, during the days of grace, any premium due but not paid shall be deducted from the benefit payable. (ii) If a premium is not paid in full before the expiry of the days of grace then the Policy shall lapse without value. (iii) Any payment of premium made to the Company after the expiry of the days of grace shall be returned to the policyholder but the non-return of such premium shall not in any circumstance constitute a renewal of the Policy. (iv) The Company may, at its discretion, reinstate the Policy within a period of one year after the due date for payment of the first unpaid premium subject to: (a) such evidence of continued good health as the Company may require and (b) the payment of all outstanding premiums together with any interest payment the Company may require. SECTION 5. ALTERATIONS You may only alter your Benefits within 6 months of the Policy Commencement Date except through the exercise of the Guaranteed Insurability Options (see Section 1.D.). Any alteration request will be subject to financial underwriting and to such evidence of good health as the Company shall at its discretion determine. The Actuary shall adjust the premium under the Policy to an amount that is appropriate to the revised Benefits. Thereafter, the Benefits may only be altered through the exercise of the Guaranteed Insurability Options (see Section 1.D.). SECTION 6. GENERAL CONDITIONS (i) If the date of birth of the Life Assured is incorrectly stated in the application form for the Policy the Actuary shall adjust any amount payable under any provision of the Policy to an amount which is appropriate in accordance with the actual date of

12 Mortgage Term Plan Policy Conditions birth of the Life Assured. (ii) If the application or any alteration request for the Policy contains the declaration that the Life Assured has not smoked tobacco during the period of one year which preceded the date of the application or any alteration request and does not intend to smoke in the future then if the said declaration is false the Policy shall be terminated and no benefits shall be payable. In these circumstances, Canada Life shall be able at its discretion to deduct and set-off any such fees, costs and expenses incurred by it from the premiums refunded in the case of the policy being terminated. (iii) If the application for the Policy omits any Material Fact or Canada Life is not notified of any change to a Material Fact that occurs prior to the Commencement Date of the Policy (apart from those covered by the Material Facts Exemption in Relation to Genetic Tests under the Provisions of the Disability Act 2005) this may result in the Policy becoming void with no benefits payable. In these circumstances, Canada Life shall be able at its discretion to deduct and set-off any such fees, costs and expenses incurred by it from the premiums refunded in the case of the policy being terminated. (iv) The Company shall have the right to make such adjustments to the provisions of the Policy as the Actuary shall determine if during the term of the Policy: (a) the investment rights and power of the Company are restricted or removed; (b) if it becomes impossible or impracticable to implement the Policy provisions; (c) the basis of taxation applicable to a life assurance company is altered or any tax, charge or levy on the Company or on its funds is imposed or altered. (v) If the payment of the benefit payable in accordance with Section 1 A is delayed for more than two months from the date of notification of Death, the Company shall pay interest on the said benefit. Such interest shall be calculated at the relevant market rate of interest determined by the Actuary from the end of the two month period until the actual date of payment. SECTION 7. CLAIMS A. Notices All notices of Assignment must be in writing stating the date and purpose of the assignment and be submitted to the Company at its Head Office in Ireland. It is the responsibility of the Life Assured to ensure receipt of notice by the Company. Acceptance of the Assignment is conditional on the acknowledgement of the Company of both the receipt of notice and the acceptance of same. B. Benefit Payments In order to make a claim, you must: (i) deliver the Policy Schedule (ii) deposit for inspection any documents necessary to show the title of the claimant to the Policy (iii) prove to the reasonable satisfaction of the Company the age of the Life Assured and the occurrence of the event upon which the claim is based (iv) provide such further documents or information as the Company may require (v) provide such medical evidence as the Company may require. These conditions must be complied with at the Company's Head Office in Ireland. The following conditions may also apply: (i) The Company may require the Life Assured to provide a certificate signed by the Medical Attendant of the Life Assured. (ii) The Company may require the Life Assured to undergo medical examinations by doctors appointed by the Company. The costs in respect of such medical examinations shall be borne by the policyholder. (iii) Notification of diagnosis of a serious illness and a completed serious illness claim form must be received by the Company in writing within 6 months of diagnosis. Failure for any reason to comply with this time limit shall render the claim inadmissible and time shall be of the essence in this regard. (iv) Notification of Permanent and Total Disablement of the Life Assured and a completed claim form must be received by the Company not earlier than 6 months nor later than one year after the commencement of the disability or such other period as the Company considers reasonable. Failure for any reason to comply with this time limit shall render the claim inadmissible and

13 time shall be of the essence in this regard. (v) Any Serious Illness Benefit payable under the terms of these policy conditions shall not when added to any similar benefit from whatever source exceed: (a) 1,500,000 or such higher amount as may be allowed in accordance with the Company s practice in force at the time or (b) as may be agreed with the Company and shown on the Policy Schedule (with due allowance for any subsequent increases as may be made under Section 5). (vi) Notification of an entitlement to a Mortgage Repayment Benefit and a completed claim form must be received by the Company not later than two weeks after the expiry of the four week deferred period. Failure for any reason to comply with this time limit shall render the claim inadmissible and time shall be of the essence in this regard. (vii) In order to make a Mortgage Repayment Benefit claim, proof to the satisfaction of the Company of the level of the monthly gross salary must be provided. Where deemed necessary by the Company, proof of the level of the monthly gross salary for both lives must be provided. (viii) The policyholder must also provide the Company with confirmation from the mortgage lender of the amount of the monthly mortgage repayment at the time of making the Mortgage Repayment Benefit claim. (ix) In the event of a dispute between the policyholder and the Company concerning medical issues in dispute in any claim made under the provisions of Sections 1.B, 1.C, or 1.E, then either party may appoint an Arbitrator who shall be a medical practitioner of consultant status acceptable to both parties. Either party must notify the other in writing of their intention to proceed under this condition within six months from the date when the claim is disputed. Failure for any reason to comply with this deadline shall disentitle the party concerned to refer the dispute to arbitration and time shall be of the essence in this regard. If both parties are unable to agree on an Arbitrator, an Arbitrator shall be appointed by the Secretary General for the time being of the Irish Medical Organisation. The award of the Arbitrator shall be final and binding on both parties. C. By whom Effected and to whom Payable Except where expressly stated, the Policy was effected by the Life Assured and any amounts payable under this Policy are payable to the Life Assured or his/her Executors, Administrators or Assigns at the Head Office of the Company in Ireland. SECTION 8. TAX The Company will be entitled to recoup any tax for which it is obliged to account in respect of this Policy including (without limitation) by deduction from any benefits payable under Section 1 of an amount equal to the appropriate tax. SECTION 9. POLICY The Policy you have chosen: (i) is a term insurance providing a benefit payable on death (or on such other contingencies as may be covered under this policy) of the Life Assured. (ii) is issued by the Company. (iii) is governed by the laws of Ireland and any premiums receivable or benefits payable shall be in Euro or such other currency as shall be acceptable to the Company. (iv) is issued on the basis of the application form, any declaration as to smoking habits, any health or other questionnaire, and any medical or other statement, which has been made by the person effecting the Policy and/or by any other person concerned with the Policy. (v) comprises the Policy Schedule and the policy conditions and these contain all the terms of the contract between the Life Assured and the Company. If any false declaration is made in relation to this Policy, the Company shall have the right to void the Policy and the Company shall refund the premiums paid by the policyholder less the costs of setting up the Policy and any administration costs incurred. Except where otherwise stated in these conditions, the Company accepts no liability in respect of any condition, warranty, representation or statement, whether expressed or implied and whether made before or after the Commencement Date of the Policy. No provision of the Policy may be waived or modified except by an endorsement issued and signed by an authorised official of the Company. Except where inconsistent with the context, words importing the masculine shall include the feminine and words importing the singular shall include the plural and vice versa.

14 SECTION 10. DEFINITIONS For the purposes of these Conditions: 'Accelerated' the Serious Illness Benefit is described as Accelerated if the payment of the Serious Illness Benefit reduces the Death Benefit applicable to the Life Assured. 'Actuary' means the Appointed Actuary for the time being of the Company and any decision, determination or exercise of any power given to him or her hereunder shall be at his or her discretion and binding on the parties to this Policy. 'Benefits' may include Death Benefit (Sum Assured), Serious Illness Benefit, and Mortgage Repayment Benefit as specified on the Policy Schedule. 'Commencement Date' means the Commencement Date as shown on the Policy Schedule. 'Company' means The Canada Life Assurance Company. 'Death Benefit' The Death Benefit is the Sum Assured. 'Disability' means Permanent and Total Disability as defined in Section 1.B. 'Head Office' means the Company's office at Canada Life House, Temple Road, Blackrock, Co. Dublin, Ireland or such other place as designated by the Company from time to time. 'Initial Sum Assured' means the Sum Assured as shown on the Policy Schedule selected at the Commencement Date. 'Life Assured' means the life (lives) as shown on the Policy Schedule. Material Fact' is a fact that will influence whether and upon what terms Canada Life accepts an application. Policy' as defined in Section 9. 'Policy Anniversary' means every anniversary of the Commencement Date. 'Policy Schedule' means the schedule attaching to these policy conditions. 'Serious Illness Benefit' means the amount payable on diagnosis of one of the illnesses outlined in Section 1.B, selected at the Commencement Date. The Serious Illness Benefit is the Sum Assured. 'Standard Terms' means that the Life Assured has been accepted with: no extra premium payable for the Benefits; and no Benefit has been declined; and no exclusions in cover have been imposed. 'Sum Assured' is the Sum Assured as stated in the Policy Schedule reducing monthly from the Commencement Date of the Policy in line with a repayment mortgage repayable monthly in arrears at an interest rate as specified on the quotation illustration. The amount of the Sum Assured may be affected through the exercise of the Guaranteed Insurability Options and/or any alteration made in accordance with these policy conditions.

15 The Canada Life Assurance Company Canada Life House Temple Road Blackrock Co. Dublin Telephone Facsimile internet CAN266 03/07 The Canada Life Assurance Company is regulated by the Irish Financial Services Regulatory Authority