Pensions Protection Investments Finance. Mortgage Protection. Explanations and Definitions.

Transcription

1 Mortgage Protection Pensions Protection Investments Finance Explanations and Definitions

2 MORTGAGE PROTECTION - Explanations and Definitions Mortgage Protection from Friends First is a Decreasing Term Assurance policy. The aim of this plan is to pay off your mortgage should you become critically ill or die. This plan is available as a single, joint, or dual life contract. Plan Benefits Life cover, and/or Critical Illness Cover, is selected at the start of the plan, and the premiums are guaranteed for the term of the plan if you do not change your sum assured. As your outstanding mortgage balance reduces, so too will the level of cover on your plan, assuming an interest rate of 8%* Basis of Cover: Single Life A single life policy has only one person covered. Joint Life Your benefit is paid on the first death of either life assured. Once the benefit is paid out, the cover on the second surviving life is cancelled. Dual Life Each life is insured individually on the policy, and the life cover amount is paid out on the death of either life assured separately. The policy can continue on the second surviving life, after the benefit is paid out on the first life. Life Cover Most mortgage lenders will insist that you insure your life to the value of your mortgage before drawing down your funds. This ensures that should you die, the outstanding mortgage amount will be cleared, and your family will not have to carry the burden of meeting mortgage repayments. * An additional option of 6% interest rate assumed is available. The sum assured decreases over the term of the plan to broadly match the outstanding mortgage, however, it does not guarantee to cover the outstanding principal if greater. Protection 3

3 Mortgage Protection - Explanations and Definitions Mortgage Protection - Explanations and Definitions Critical Illness Cover measured at 3/60 or worse in the better eye using a Snellen eye chart. 9. Coronary artery by-pass graft (with surgery to divide the breastbone) 14. Heart valve replacement or repair (with surgery to divide the breastbone) This is an optional feature that will pay you a lump sum if you should be diagnosed as suffering from any of the list of specified illnesses covered, currently the following list (as at May 2009): 1. Alzheimer s disease before age 65 (resulting in permanent symptoms) A definite diagnosis of Alzheimer s disease before age 65 by a Consultant Neurologist, Psychiatrist or Geriatrician. There must be permanent clinical loss of the ability to do all of the following: remember; reason; and perceive, understand, express and give effect to ideas. Other types of dementia. 2. Aorta graft surgery (for disease) The undergoing of surgery for disease to the aorta with excision and surgical replacement of a portion of the diseased aorta with a graft. The term aorta includes the thoracic and abdominal aorta but not its branches. Any other surgical procedure, for example the insertion of stents or endovascular repair. Surgery following traumatic injury to the aorta. 3. Bacterial Meningitis (resulting in permanent symptoms) Bacterial Meningitis causing inflammation of the membranes of the brain or spinal cord resulting in permanent neurological deficit with persisting clinical symptoms. The diagnosis must be confirmed by a Consultant Neurologist. All other forms of meningitis including viral meningitis are not covered. 4. Benign Brain Tumour (resulting in permanent symptoms) A non-malignant tumour or cyst in the brain, cranial nerves or meninges within the skull, resulting in permanent neurological deficit with persisting clinical symptoms. For the above definition, the following are not covered: Tumours in the pituitary gland. Angiomas. 5. Total Blindness (permanent and irreversible) Permanent and irreversible loss of sight to the extent that even when tested with the use of visual aids, vision is 6. Cancer (excluding less advanced cases) Any malignant tumour positively diagnosed with histological confirmation and characterised by the uncontrolled growth of malignant cells and invasion of tissue. The term malignant tumour includes leukaemia, lymphoma and sarcoma. All cancers which are histologically classified as any of the following: pre-malignant; non-invasive; cancer in situ; having either borderline malignancy; or having low malignant potential. All tumours of the prostate unless histologically classified as having a Gleason score greater than 6 or having progressed to at least clinical TNM classification T2N0M0. Chronic lymphocytic leukaemia unless histologically classified as having progressed to at least Binet Stage A. Any skin cancer other than malignant melanoma that has been histologically classified as having caused invasion beyond the epidermis (outer layer of skin). 7. Chronic Liver Disease End stage liver failure due to cirrhosis and resulting in all of the following: Permanent jaundice Ascites Encephalopathy Liver disorder secondary to alcohol or drug misuse is excluded. 8. Coma (resulting in permanent symptoms) A state of unconsciousness with no reaction to external stimuli or internal needs which: requires the use of life support systems for a continuous period of at least 96 hours; and results in permanent neurological deficit with persisting clinical symptoms. Coma secondary to alcohol or drug abuse. The undergoing of surgery requiring median sternotomy (surgery to divide the breastbone) on the advice of a Consultant Cardiologist to correct narrowing or blockage of one or more coronary arteries with by-pass grafts. 10. Creutzfeldt-Jakob Disease (resulting in permanent symptoms) Confirmation by a Consultant Neurologist of a definite diagnosis of Creutzfeldt-Jakob disease resulting in permanent neurological deficit with persisting clinical symptoms. 11. Deafness (permanent and irreversible) Permanent and irreversible loss of hearing to the extent that the loss is greater than 95 decibels across all frequencies in the better ear using a pure tone audiogram. 12. Emphysema (of specified severity) Confirmation by a Consultant Physician of chronic lung disease which is evidenced by all of the following: The need for continuous daily oxygen therapy on a permanent basis. Evidence that oxygen therapy has been required for a minimum period of six months; FEV1 being less than 40% of normal; Vital Capacity less than 50% of normal. 13. Heart attack (of specified severity) Death of heart muscle, due to inadequate blood supply, that has resulted in all of the following evidence of acute myocardial infarction: Typical clinical symptoms (for example, characteristic chest pain). New characteristic electrocardiographic changes. The characteristic rise of cardiac enzymes or Troponins recorded at the following levels or higher; Troponin T > 1.0 ng/ml AccuTnI > 0.5 ng/ml or equivalent threshold with other Troponin I methods. The evidence must show a definite acute myocardial infarction. Other acute coronary syndromes including but not limited to angina. The undergoing of surgery requiring median sternotomy (surgery to divide the breastbone) on the advice of a Consultant Cardiologist to replace or repair one or more heart valves. 15. HIV infection (caught in Ireland or the UK from a blood transfusion, a physical assault or at work in an eligible occupation 1 ) Infection by Human Immunodeficiency Virus resulting from: a blood transfusion given as part of medical treatment; a physical assault; or an incident occurring during the course of performing normal duties of employment from the eligible occupations listed below 1 ; after the start of the policy and satisfying all of the following: The incident must have been reported to appropriate authorities and have been investigated in accordance with the established procedures. Where HIV infection is caught through a physical assault or as a result of an incident occurring during the course of performing normal duties of employment, the incident must be supported by a negative HIV antibody test taken within 5 days of the incident. There must be a further HIV test within 12 months confirming the presence of HIV or antibodies to the virus. The incident causing infection must have occurred in Ireland or the United Kingdom. HIV infection resulting from any other means, including sexual activity or drug abuse. Note 1: Eligible occupations: doctor, health worker, prison officer, Garda, fire officer, ambulance officer. 16. Kidney failure (requiring dialysis) Chronic and end stage failure of both kidneys to function, as a result of which regular dialysis is necessary. 17. Loss of hands or feet (permanent physical severance) Permanent physical severance of any combination of 2 or more hands or feet at or above the wrist or ankle joints. 18. Loss of speech (permanent and irreversible) Total permanent and irreversible loss of the ability to speak as a result of physical injury or disease. 4 Protection Protection 5

4 Mortgage Protection - Explanations and Definitions Mortgage Protection - Explanations and Definitions 19. Major organ transplant The undergoing as a recipient of a transplant of bone marrow or of a complete heart, kidney, liver, lung, or pancreas, or inclusion on an official UK waiting list for such a procedure. Transplant of any other organs, parts of organs, tissues or cells. 20. Motor neurone disease before age 65 (resulting in permanent symptoms) A definite diagnosis of motor neurone disease before age 65 by a Consultant Neurologist. There must be permanent clinical impairment of motor function. 21. Multiple sclerosis (with persisting symptoms) A definite diagnosis of Multiple Sclerosis by a Consultant Neurologist. There must be current clinical impairment of motor or sensory function, which must have persisted for a continuous period of at least 6 months. 22. Paralysis of limbs (total and irreversible) Total and irreversible loss of muscle function to the whole of any 2 limbs. 23. Parkinson s Disease before age 65 (resulting in permanent symptoms) A definite diagnosis of Parkinson s disease before age 65 by a Consultant Neurologist. There must be permanent clinical impairment of motor function with associated tremor, rigidity of movement and postural instability. Parkinson s disease secondary to drug abuse. 24. Rheumatoid Arthritis Severe Rheumatoid Arthritis with widespread destruction of the joints and major clinical deformity of three or more of the following joint areas: hands, wrists, elbows, neck, knees, ankles and toes. The disease must prevent the life assured from performing, without help, three or more of the Activities of Daily Living described in the table on the next page. 25. Stroke (resulting in permanent symptoms) Death of brain tissue due to inadequate blood supply or haemorrhage within the skull resulting in permanent neurological deficit with persisting clinical symptoms. For the above definition, the following are not covered: Transient ischaemic attack. Traumatic injury to brain tissue or blood vessels. 26. Systemic Lupus Erythematosus (of specified severity) A definite diagnosis of systemic lupus erythematosus by a Consultant Rheumatologist where either of the following are also present: Severe kidney involvement with SLE as evidenced by: OR Permanent impaired renal function with a glomerular filtration rate (GFR) below 30ml/min, and; Abnormal urinalysis showing proteinuria or haematuria Severe Central Nervous System involvement with SLE as evidenced by: Permanent deficit of the neurological system as evidenced by at least any one of the following symptoms which must be present on clinical examination and expected to last for the remainder of the claimant s life paralysis, localised weakness dysarthria (difficulty with speech) aphasia (inability to speak), dysphagia (difficulty in swallowing), difficulty in walking, lack of coordination, severe dementia where the insured needs constant supervision or permanent coma. For the purposes of this definition seizures, headaches, fatigue, lethargy or any symptoms of psychological or psychiatric origin will not be accepted as evidence of permanent deficit of the neurological system. 27. Third degree burns (covering 20% of the body s surface area) Burns that involve damage or destruction of the skin to its full depth through to the underlying tissue and covering at least 20% of the body s surface area. 28. Traumatic head injury (resulting in permanent symptoms) Death of brain tissue due to traumatic injury resulting in permanent neurological deficit with persisting clinical symptoms. Washing: Dressing: Feeding: Toileting: Transferring: Washing in a bath or shower (including getting into or out of the bath or shower) or wash satisfactorily by other means. Putting on, taking off, fastening and unfastening all clothes and, if necessary, any braces, artificial limbs or other surgical appliances. Feeding oneself once food has been prepared and made available. Using the toilet or otherwise managing bowel and bladder functions so as to maintain a satisfactory level of personal hygiene. Moving from a bed to an upright chair or wheelchair or vice versa. The restrictions and exclusions on Friends First Critical Illness cover are: If you are covered for Critical Illness Benefit, please remember that you will only be considered critically ill if you meet the exact definitions of the illnesses listed above. For example, although fibroadenoma can be referred to as a form of breast cancer, it is actually a relatively harmless benign cancer and so is not covered. There are also illnesses, which although very serious, are not covered as a critical illness under this policy. Epilepsy would be an example of such an illness. To qualify for Critical Illness Benefit, a life assured must be diagnosed by a consultant physician, in a major private or public hospital in Ireland or the United Kingdom, as suffering from any of the illnesses defined above. Our Chief Medical Officer must verify the diagnosis of any critical illness. In addition, the following exclusions apply: We will not pay any Critical Illness benefit if a life assured is outside the territorial limits for more than three months in any calendar year. (The territorial limits are the member states of the EU on the policy start date, the United States of America, Canada, New Zealand, Australia, Norway, Switzerland, Japan, South Africa, Singapore, Iceland, and Saudi Arabia.) We will not pay benefit for blindness, coma, heart attack, kidney failure, major organ transplant or paralysis, if the claim is either directly or indirectly the result of drug or alcohol abuse or abusing other dangerous substances. paralysis if the claim is either directly or indirectly the result of the life assured deliberately neglecting his or her health by failing to get or follow medical advice or to a deliberate self inflicted injury. For a joint life policy, critical illness benefit applies on the first diagnosis of a specified critical illness of the lives assured. You must write to us within 3 months of the date of diagnosis of any critical Illness. Accelerated Cover Friends First Mortgage Protection allows you to select combined Life and Critical Illness cover for the same amount. If a claim is paid out for critical illness, there is no remaining life cover on the policy. Example: A policy where the Life & Critical Illness sum assured is E150,000. If this amount is paid out on claim for critical illness as defined above, the life cover would also be reduced to E0 and the policy would cease. Additional benefits Advance Life cover If this plan provides protection for a new main residence or for improvements/extensions, we offer free life cover from the date of exchange of contracts up to the date the mortgage starts, or for 3 months, whichever is earlier. Non Smoker discount At outset you will be eligible for reduced premium rates if you have not smoked any form of tobacco or tobacco based substances in the last 12 months. Advance payment of Critical Illness cover We will pay 50% of the critical illness sum assured in advance in the following circumstances: If a consultant physician confirms in writing that a life assured needs aorta surgery, coronary artery surgery, heart valve and structural surgery or a major organ transplant*; and We receive confirmation that the life assured is on the official waiting list of a public or private hospital in Ireland or the United Kingdom. We will not pay benefit for blindness, coma, loss of limbs or 6 Protection Protection 7

5 Mortgage Protection - Explanations and Definitions If you receive 50% of the benefit in advance we will reduce the Critical Illness sum assured for that life assured by 50%. If the Critical Illness Benefit is an accelerated benefit we will also decrease the Life Cover Sum Assured for that life assured by 50% of the value of the Critical Illness benefit amount. *Major organ list: heart, lung, liver, kidney, pancreas, or bone marrow Terminal illness benefit In the event that in the opinions of an attending Consultant and our Chief Medical Officer, you are suffering from an advanced or rapidly progressing incurable illness where your life expectancy is no greater than 12 months, we will allow you to take 95% of the Life Cover amount. If you exercise this option, your policy will end. Total & Permanent Disability (automatic Quality of Life definition) On our Mortgage Protection policy, the definition of disabled is that you cannot live your normal day to day life without assistance. This can be due to a mental or physical illness or an injury that prevents you doing 2 or more listed activities. This list includes walking 200 metres without severe discomfort, operating light switches and taps with either hand or being able to read a large print book. This assessment for benefit applies up to age 60. Total & Permanent Disability after age 60 The definition of disability for the benefits above will automatically change at age 60. At that stage we will assess Total & Permanent Disability based on your ability to perform a number of activities of daily living without help from another person. To qualify you must be unable to perform three or more listed activities, such as washing yourself, feeding yourself or moving around without assistance. Children s Critical Illness cover We will pay 20,000 (or 50% of your Critical Illness cover, if less) if any of your children suffer from any of the illnesses specified (with the exception of Total & Permanent Disability) and survive for a period of at least 14 days after diagnosis. Only one claim is allowed per child, this covers children from age 1 to 18. Encashment This plan will have no cash-in value at any time. Taxation Paying premiums There is no tax relief available on premiums paid under this plan. Claiming lump-sum benefit If a life or critical illness claim is made on this plan, no exit tax is payable on the proceeds. The content of this manual is designed to help you understand the product you are interested in. It does not form part of any subsequent contract which you may enter into with Friends First. To discover the difference, please contact your Financial Adviser or contact Friends First Direct on Alternatively, you can contact us online at Overseas Surgery benefit There may be occasions when you or your children need to travel abroad for specialised surgery arising from one of our listed illnesses. To assist you in covering travel and associated costs, we will pay you an extra 7,000 on top of your Critical Illness benefit. The additional payment will be made after the operation. 8 Protection

6 Friends First Life Assurance Company Ltd Friends First House Cherrywood Business Park Loughlinstown Dublin 18 PEFC/ From sustainably managed forests - For more info: Friends First Life Assurance Company Limited is regulated by the Financial Regulator. Terms and Conditions apply. BR143 May 09