For customers. Friends Life Protect+ Income Protection Cover. Income Protection Cover. It s income protection. And more.

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1 For customers Friends Life Protect+ Income Protection Cover Income Protection Cover It s income protection. And more.

2 It s income protection. And... 2

3 it addresses a vital need it provides a regular income when illness or injury stops you earning it offers a range of health benefits it provides certain guarantees it s adaptable to your circumstances it provides more than a financial benefit it could provide more than the State 3

4 It addresses a vital need Most people are happy to insure their home, cars, valuable belongings and even their pets. But they often forget to insure the thing that pays for everything - their income. 35 % of couples with children have no savings 1, putting them at considerable risk if illness, unemployment or an emergency should hit. More than 130 million days were lost to sickness absence in million days were lost to work-related ill health in 2013/ Every day 6,000 people in the UK become carers 4, this could have a huge effect on lifestyles and finances. And even if you are fit and healthy, suddenly having to support a loved one who becomes ill and in need of care is a possibility. So, is there a need for income protection? With income protection that can support you if you are unable to work due to illness or injury, but which also provides some support if a member of your immediate family becomes seriously incapacitated, we think there is Aug Office for National Statistics - Sickness Absence in the Labour Market Aug Health and Safety Executive. - Aug Aug

5 It provides a regular income when illness or injury stops you earning Friends Life Protect+ Income Protection Cover provides insurance if you lose your ability to earn a living because you can t work due to illness or injury. We believe that we offer a comprehensive policy, that covers a wide range of occupations. It s also available to the self-employed as well as those in employment. The choice of terms is highly flexible. You can take out a policy if you are aged between 18 and 59. You can hold the policy until retirement, which can be any age between 50 and 70. Or you can choose any fixed term from 5 to 52 years, subject to your age and term of cover. The maximum benefits that will be paid will be based on your pre-incapacity gross annual income as follows: 65 per cent of the first 10,000 a year plus 55 per cent of earnings over 10,000 a year. We will deduct any continuing earnings and benefits, such as salary, dividends and income from other insurances, that you receive from the benefit calculated above, but will not deduct any state benefits. We offer a maximum benefit of 150,000 a year. 5

6 It offers a range of health related benefits With Friends Life Protect+ Income Protection, you ll have access to a range of health related benefits that could make a real difference in the event of illness or injury. Family carer benefit We will pay up to 1,500 a month for a maximum of 12 months if your spouse, civil partner or child becomes unable to carry out certain activities for at least three consecutive months. This could provide you with extra money at a difficult time to help support your family financially, for example if you need to pay for specialist care while you continue to work. Please see the membership handbook for more details. Therapy benefit Therapy benefit will provide you with financial support of up to 200 per policy year, for chiropractic, osteopathy and physiotherapy treatment. Terms and conditions apply. Fracture cover If you suffer one of 18 specified fractures, we will pay a lump sum of up to 2,100 per policy year. Fracture cover is an extra option which is available at an additional cost. You can find more information in our Income Protection Membership Handbook. Hospital in-patient benefit If you are hospitalised through injury or illness for six consecutive nights or more we will pay up to 200 per night for each night you spend in hospital, up to a maximum of 90 nights. Terms and conditions apply. Trauma benefit If a traumatic injury results in paralysis of the limbs, loss of sight, hearing, speech, hands or feet, or physical independence you will receive up to 40,000. 6

7 It provides certain guarantees Guaranteed benefits We know that life doesn t always go to plan and that your income may fluctuate, especially if you are self-employed or part of your earnings are reliant on commission or bonuses. We can guarantee certain levels of income should you be unable to work because of illness or injury. We will guarantee up to the first 1,500 per month of any claim. And for higher earners there is an additional guarantee if your benefit entitlement dips by up to ten per cent, we will pay the full benefit for the duration of the claim. This means that, if you find your income reduced for some reason after taking out the cover, it doesn t mean your benefit will always be reduced. Please see the next page for some examples. Waiver of premiums If you make a claim we don t believe you should pay your premiums for any longer than necessary. After you have made a claim we will waive your premiums depending on your deferred period. Deferred period When you stop paying your premiums 1 month 1 month from the date your incapacity started 2 months 2 months from the date your incapacity started 3 months 3 months from the date your incapacity started 6 months 3 months from the date your incapacity started 12 months 3 months from the date your incapacity started 24 months 3 months from the date your incapacity started 7

8 So, how do the guaranteed benefits work? Example one Paul earns 35,000 a year, takes out cover and is eligible for the maximum available annual benefit of 20,250 a year. Paul puts in a valid claim due to ill health but he is now earning less, let s say 28,000 a year. This would equate to a maximum annual benefit of 16,400. We will pay an annual benefit of 18,000 (the maximum guaranteed benefit payable) until Paul s policy expires or he returns to work, assuming there are no continuing earnings or benefits. Example two Michelle earns 60,000 a year, applies and takes out cover for the maximum available benefit of 34,000 a year. Michelle puts in a valid claim due to ill health but she is now earning less, let s say 58,000 a year. This would equate to an annual benefit of 32,900 a year. We will pay an annual benefit of 34,000 until Michelle s policy expires or she returns to work, assuming there are no continuing earnings or benefits. The higher payment (in this example, 34,000) is available here because, at the point of the claim the difference between the benefit bought by Michelle and the benefit allowed is less than ten per cent. 8

9 It s adaptable to your circumstances You can increase your cover up to three times throughout the life of the policy. You may want to increase it for a variety of reasons; you may have: married or become a civil partner divorced or separated obtained a dissolution of a civil partnership had a child (including adopting a child or becoming a legal guardian) increased your mortgage due to moving house or undertaking home improvements been promoted by your current employer or started a new job with a different employer and your salary has increased. In any of these situations, you can write and ask us to change your policy. You have the option to make these types of changes to your policy with an increase in your annual benefit up to a maximum of 9,000. Terms and conditions apply. Significant professional development If you are in a profession where your earning prospects are likely to increase significantly over time, you can make a one off increase to your annual benefit, up to a maximum of 20,000 where you have had more than a 20 per cent increase in earnings as a result of progression in your career. This increase can be over one, or a series of pay rises. Your application to increase your benefit must be made within three months of a pay rise. 9

10 It provides a range of other valuable benefits Career break If you take time off from your paid occupation at any point during the term of your membership, you can exercise one of the two career break options: either an adjusted premium and benefits or fixed premiums with your gross annual income considered to remain the same if you become incapacitated during a work sponsored career break. Houseperson s benefit We offer houseperson s benefit which may pay up to 15,600 a year if you do not work, or work less than 16 hours a week when your claim is made. NHS Doctors Sick Pay Initiative After five years service, NHS doctors are entitled to the maximum sick pay allowance of six months full pay followed by six months of half pay. However, for newly qualified doctors who haven t accrued years of service, or doctors returning to the NHS after a sabbatical, their sick pay entitlement will be less. Our income protection cover features the NHS Doctors Sick Pay Initiative for doctors employed by the NHS. Regardless of how long they have been working for the NHS, if they are unable to work due to sickness or injury, it provides a replacement income as soon as their NHS full sick pay ends. Terms and conditions apply. Maternity benefit If you become incapacitated during your maternity leave we will treat you as if you are still at work and earning the same as before you went on maternity leave, for the first 12 months of maternity leave. 10

11 We also provide proportionate and rehabilitation benefit You could benefit from proportionate benefit if you return to another occupation and receive a lower income as a result of your illness or injury. Alternatively, the rehabilitation benefit would be paid, for a maximum of one year, if you return to the same occupation as before but at a reduced level of income. Terms and conditions apply. The following benefits are optional extras that can be added to your policy on application: Limited benefit period This option enables you to receive benefits for up to two years as a single continuous period or a series of shorter periods totalling 24 months, at a reduced premium. You can also convert your policy at a later stage to remove this option if your circumstances change. You can make multiple claims of up to two years. Provided that you return to work for six months between limited benefit claims you will be able to claim again for the same incapacity. Terms and conditions apply. Indexation We will increase the benefit on your policy anniversary. The amount the benefit increases by will depend on the indexation option you select. The yearly increase levels you can choose from are: Retail Price Index (RPI), Average Weekly Earnings (AWE), or by set levels of three per cent or five per cent. Indexation will result in an increased premium when the benefit increases. 11

12 It provides more than a financial benefit We provide a range of health related services designed to offer help when you need it. Bupa HealthLine Bupa HealthLine is a team of skilled and experienced nurses, with a wealth of up-to-date health information at their fingertips. You can speak to a fully qualified Bupa nurse about any type of health query, day or night, on any day of the year. Bupa HealthLine is also available for your partner and dependent children. Second Opinion Second Opinion by Best Doctors provides a second medical opinion service from one of the best experts in the world. It is there for you, your partner and your children, up to age 18, or age 23 if in full time education. It can be used from the day of cover and at any time during the term of your policy. The Best Doctors network of over 53,000 leading medical experts can give you peace of mind that you have the right information to make important medical decisions with confidence. Short-term counselling This service offers up to six, 50 minute counselling sessions, providing help with any type of mental wellness issue, where short-term counselling is considered appropriate, such as bereavement or relationship breakdown. It provides either face to face or telephone based counselling and can be used by you, your partner or your children over 18 years old. Carer support service If you are a carer and facing the challenges of caring for a loved one, this service can provide you with help and information on all aspects of caring. Bupa HealthLine, Second Opinion and Counselling and carer support services are discretionary benefits that may be withdrawn by Friends Life at any time. Bupa HealthLine is provided by or through subsidiary companies of the Bupa Group. Best Doctors is a registered trademark of Best Doctors Inc. in the United States and other countries. Used with permission. Counselling and carer support services are provided by Workplace Options. 12

13 Global Treatment Friends Life is the only UK protection provider to team up with Best Doctors to exclusively offer Global Treatment, as an additional option with any of our Protect+ covers, giving you access to top medical minds and leading overseas treatment. Serious illnesses like cancer and heart conditions are all too common. But while our country s healthcare system is advanced, sometimes the very latest or leading treatment options may not always be available in the UK, even privately. With Global Treatment you can access this treatment, wherever it s provided allowing you to explore all avenues to find the best solution. Global Treatment could open doors to more treatment options. It s a small price to pay for the peace of mind this can give you and your family. For more information on our Global Treatment option, please visit Terms and conditions apply. Best Doctors is a registered trademark of Best Doctors, Inc. in the United States and other countries. Used with permission. For 4 a month, on diagnosis of one of the most common serious illnesses or if you or your child require certain medical procedures, you could be treated at a world-renowned hospital overseas. Global Treatment also pays travel and accommodation costs for you and a companion (both parents, or a parent and companion, if it s your child who is ill). 13

14 The policy that could offer more than the State can provide If you are too ill to work through injury, illness or disability, you may be entitled to support from the State. Households can potentially claim up to 26,000 1 a year of means tested benefits. Which benefits you apply for and how much you receive will depend on your individual circumstances, and income protection will reduce what you can claim overall. Factors such as your partner s income, your savings and the number of children you have will also impact directly on what you get. What you receive will also change as your household changes, whether it s your children leaving home or your partner s salary fluctuating. There are indicative benefits calculators available that can help you work out how much you could receive, visit Income protection provides certainty about what you can claim and how long for, giving you and your family financial peace of mind. Use our budget planner to make a note of your monthly outgoings. This will help you determine how much you might need to keep family life running if illness or injury stopped you from working November 2014 Monthly outgoings Cost Mortgage repayments / rent Home insurance Council tax Loans / credit cards Gas Electricity Water Telephone / mobile / internet Supermarket bills Life assurance Property maintenance Pension Clothing TV licence and satellite TV Car tax and insurance Petrol Other (e.g. Holidays) TOTAL 14

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16 Simply speak to your adviser for more information. Friends Life and Pensions Limited An incorporated company limited by shares and registered in England and Wales, number Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Telephone calls may be recorded. Friends Life is a registered trade mark of the Friends Life group. FLIP/6679/Sep UNI