All you need to know

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3 Welcome This pack should contain everything you need to know about the way Scottish Provident and our products can benefit both you and your clients. Of course, if there is anything you would still like to ask us, please feel free to contact your Scottish Provident sales consultant. You can find details at the back of this pack.

4 Reasons why you and your clients should choose Scottish Provident Award winning Scottish Provident Flexible and innovative cover Scottish Provident, the pioneer of Financial strength Treating customers fairly (TCF) our promise to you Since 1996 Scottish Provident s products have been consistently We are proud of the 5 Star Ratings we achieved from the menu of benefits approach Standard and poor s ratings A- (counterparty credit rating) July 2010 We strongly believe treating recognised through the receiving Defaqto for the critical illness to protection, provides true flexibility for your clients needs, both for today and in the future. Moody s ratings A2 April 2009 AKG B+ (overall financial strength) September 2009 all our customers fairly is the only way to succeed in business. We aim to make of awards from various industry bodies and associations. benefits in our Self Assurance plan. These achievements reflect the comprehensive Fitch ratings A October 2009 all our communications easy quality of our products from Our Self Assurance and Pegasus to understand and keep our a client s perspective. plans are not just a one size fits Source: Royal London Group (01 September 2010) customers informed in an all solution. Your clients can appropriate manner. choose from a range of options to suit their personal requirements Our financial strength Commission TCF is not a bolt on solution, whether it is straightforward life Scottish Provident was first Scottish Provident offers it has to be at the heart of the cover to critical illness or income established in 1837 and has flexible and competitive business where it can continue protection, premium protection grown to become one of the commission rates and if you to develop. When we make any or unemployment cover we UK s leading providers of submit business online you changes to our TCF approach, have a plan to suit their needs. protection cover, offering will receive an additional we will keep you up-to-date a wealth of experience 10% commission. on these developments as We know life does not stay and expertise. and when they happen. the same. People get married or divorced, move to a bigger Our parent, the Royal London house, change mortgage Group, has been around since provider, have children or get With around 3.6 million that well deserved promotion customers and employing at work. So whatever changes 2,890 people,* it is the largest happen in your client s life, their mutual life and pensions plan can change with them. company in the UK with funds of 39.1 billion under management. * Source: Royal London Group figures as at 30 June 2010.

5 Going beyond the ABI standards Claims paid history - a company you can trust Scottish Provident was at the forefront of the protection industry in developing critical illness definitions which exceeded the cover provided under the ABI s standard definitions. You and your clients will have the peace of mind knowing that we have gone above and beyond industry set standards, thereby increasing the probability that they will be covered if they ever need to claim. The seven definitions that go beyond the ABI standard are shown on the right: Our ABI+ definitions Aorta graft surgery Benign brain tumour Coma Coronary artery bypass grafts Heart attack Heart valve replacement or repair How do we go beyond the standard? We cover surgery for traumatic injury to the aorta. We have removed the requirement for permanent neurological deficit with persisting clinical symptoms if the tumour is surgically removed. Our definition does not require the claimant to be on a life support system. We have maintained our position of allowing keyhole surgery for this definition. We do not require evidence of typical clinical symptoms (for example chest pain) to admit a heart attack claim. We have maintained our position of allowing keyhole surgery for this definition. We deliver on our promises. We pay out! In 2009 we paid out almost 94 million in critical illness (CI) claims. Here are some other useful statistics: 91.3% of claims in 2009 were successful Of the unpaid claims, 7% were not paid due to the illness not meeting our critical illness definition 1.7% of all claims not paid related to non-disclosure 62% of all claims were related to cancer claims. Source: Scottish Provident critical illness claims paid report (1 January to 31 December 2009). 62 % Cancer HIV infection We have extended our definition to include other countries, so that the claimant is not restricted to becoming infected within the UK. 12 % Heart Attack Please refer to either the Self Assurance product guide or the Pegasus critical illness definitions guide for a full list of our critical illness definitions. 12 % Other 3 % Children s Critical Illness 5 % 6 % Stroke Multiple Sclerosis 93,854,664 paid out in critical illness claims in 2009.

6 Our plans in action We have created four case studies to illustrate how we can help your clients, whatever their circumstances.

7 The single graduate The young couple Michael has just graduated Solution: Jacqui and Graeme are a Solution: and has secured a job earning Income protection (disability income protection) from our young couple with one child For them, flexible cover is paramount. We offer two market leading 26,750. Self Assurance protection menu could be ideal in this situation. and another one on the way. products covering life and critical illness cover that could help your clients. Self Assurance is term based cover and Pegasus is a unit linked He is single, with a student loan This benefit could offer your client the reassurance of an income Their mortgage takes a large whole of life based cover. Both are designed to deliver comprehensive, to pay costing 82 a month and up to a maximum of 50% of his salary should he be ill and off work amount of their monthly flexible cover. he is thinking of purchasing his for a long period of time. He would need to know what his sick income but they know they first property. Protecting his pay arrangements were with his new job, before he could arrange have to plan for the future for The Self Assurance protection menu provides benefits that can be income is his main priority. appropriate cover. With flexible premiums and terms, the benefit the benefit of their growing selected to suit each individual parent. If more than one benefit is added is highly adaptable should his circumstances change. family and to protect their to the plan, such as life cover with income protection or critical illness current quality of life. cover, then it is more cost effective than buying them separately. Additional benefits can also be added, should the need arise, Children s critical illness cover is automatically included on critical illness including critical illness cover and life cover. This is something to Presently, they have no benefits for added reassurance at no extra cost. They can also easily bear in mind should he find himself in a long term relationship in life or critical illness cover adapt the plan should their needs change. the not so distant future. in place. You can find more details about our life and critical illness plans in the You can find more details about our income protection plans in the product section of this pack, or simply speak to your Scottish Provident product section of this pack, or simply speak to your Scottish Provident sales consultant. sales consultant.

8 The middle aged partnership The retirees Gareth and Colin are a Solution: Christine and John are a Solution: middle aged, same sex couple. Unemployment benefit can be chosen from our Self Assurance mature couple in their late 50s. We offer two market leading and award winning life protection menu. It is only available for mortgage plans and in and critical illness products that could help your clients: They have lived together for conjunction with another benefit such as life cover, critical illness Both are thinking about their Self Assurance, term based cover and Pegasus, a unit linked whole two years and have two young cover or income protection. As they do not have any income protection retirement and plan to move of life based cover that is not subject to a maximum expiry age. children to support from cover in place, they could take out some income protection along to a property by the sea. previous relationships. Given with unemployment benefit. With two children and three In this instance, Pegasus could be the ideal choice for your clients the current economic climate grandchildren, they are looking as they could put in place our Pegasus retirement cover option. they are most concerned about Unemployment benefit will give your clients the choice of a monthly for a protection plan to help This option allows full critical illness cover to be provided until unemployment protection. income paid for one or two years with cover of 40% of salary, them financially should one retirement age (65) at which stage it will be replaced with retirement up to a maximum of 2,000 a month. of them develop a critical cover that covers those critical illnesses most likely to be relevant They already have some life and illness. They also require some in older age such as: Alzheimer s disease, dementia and Parkinson s critical illness cover in place. Additional advantages include access to JobCare which provides a provision for their family should disease. A lump sum is payable upon diagnosis that could be used CV writing service, career information library and access to a national inheritance tax become payable. to help pay care bills or fund treatment. job vacancy database to help get your client back into full time employment as soon as possible. Self Assurance has the added Our Pegasus Wealth Preservation Plan could meet their additional benefit of being adaptable to suit your client s needs should their need of providing financial help when they die. This plan can be requirements change in the future. set up on a second event basis to provide a lump sum to pay any inheritance tax liability. The plan can be written in trust so the proceeds You can find more details about our income protection and are paid directly to their family avoiding lengthy delays on a claim. unemployment benefits in the product section of this pack, or simply speak to your Scottish Provident sales consultant. You can find more details about our life and critical illness plans in the product section of this pack, or simply speak to your Scottish Provident Please note that unemployment benefit and JobCare are provided by separate companies from Scottish Provident. Please see the relevant literature for full details. sales consultant.

9 How we can support you and your clients We realise that it is important to offer quality products that provide flexibility but also realise that the support both you and your clients receive is equally important.

10 How we can support you Dedicated business support Marketing Underwriting Comprehensive trust service We know that dealing with trusts Online support We offer you support on a We want to keep you up to date From time to time you may We want to keep the concept can be complicated. Therefore, Keep up to date by visiting the specialist range of services and with relevant, fresh and high need to speak to us prior to of trusts as simple as possible so we have put a team in place who Scottish Provident website at immediate access to a team of quality marketing support. submitting a case. We have a your clients can understand and can give you all the help you expert sales consultants and We provide you with: dedicated helpline for you to appreciate the benefit of placing need for general and product for all the latest product adviser development managers. They are on hand to support A full range of product literature use with immediate access to an underwriter. their protection plan in trust. specific taxation advice. We will give you a dedicated contact to information, news articles and press releases. You can also order all your protection sales needs Sales tools to help promote By placing your client s plan in use regardless of whether you Scottish Provident literature and be it face to face, online or over the need for protection Large case team trust, they: have submitted business or not. sales materials. the phone. Our specialist range of business support includes: Training through seminars and workshops Building your product expertise Providing you with tangible ideas to help you bring in new business. The Life Matrix, a handy tool that you can use to help identify different client s needs as well as help to target relevant customer groups more effectively. We want to give you the best possible service and as part of that commitment we are aware how important large case business can be. That is why we have a team who specifically deal with large case business. Our team will keep in touch to make sure you know what we are doing to get your client s plans in force as quickly as we can. Allow their family to benefit from the plan proceeds instead of the taxman. This will ensure that any proceeds are held outside of the estate on death thereby avoiding the need to pay inheritance tax (IHT) Have the flexibility to choose whom they would like to benefit Remain in control of their assets Please note that the tax and trust support helpline is provided by a separate company from Scottish Provident. Through our website you can access that offers additional help and support with the following: Quote and apply with an automated underwriting service Quote and apply demos Save and recall quotes and applications Allow the proceeds to be paid Policy tracking without delay. Product literature and information Sales support with suitability information and sales aids.

11 How we can support you and your clients Our products Claims helpline Our team of claims specialists are trained to guide your clients JobCare We offer JobCare for those plan holders who have claimed Lifeline Lifeline is a confidential advice and support service free* for you, There are two products under the Scottish Provident brand: through what can be a difficult on their unemployment cover. your clients and their families. and traumatic time. They provide information and guidance This is a free,* confidential, telephone based service, It provides information and support on issues such as tax, Pegasus (unit linked, whole of life based cover) throughout the claims process to reassure your clients. We make sure we pay as promptly as possible if the claim is accepted. We have developed a suite of handy guides to our claims processes. This will help you and your clients understand the information and evidence we need to gather in order for us to pay a claim. designed to help your clients get back to work. Key features of the JobCare support include a back to work guide, information on employment options, access to a national job vacancy database and help in identifying opportunities for a career change. JobCare can also provide advice on writing CVs, attending interviews, help with letters of application and Department for Work and law, health and employment. For full terms and conditions please see our Self Assurance product guide and Pegasus technical reference guide. Exclusions and limitations may apply. * These phone based support packages are free (other than the cost of a local rate phone call). Please note that both Lifeline and JobCare are separate companies from Scottish Provident and all advice is therefore independent. We can withdraw these services or change the company providing the service at any time. Self Assurance (term based cover). They are designed to offer both comprehensive and flexible cover that enables your clients to choose the most suitable benefits and options for them. The plans can be altered to meet your client s changing needs. We have included an at a glance summary of the main features and benefits for each product. Pensions (DWP) procedures.

12 Pegasus (whole of life) Retirement cover Guaranteed Business Assurance Plan Split sums assured Inheritance tax provision Career cover On retirement, the needs and insurability options Partnership or shareholder option, For added flexibility Pegasus Pegasus provides option for an Career cover allows your client to lifestyle of your clients obviously We understand that over time business development increase plans allow benefits to be IHT planning product called the choose a specified period of time, change. We offer a retirement your client s protection needs and key employee option. split into separate plans, for Wealth Preservation Plan. where the premium on the plan is option on Pegasus that can can change, both at work and example, separate life and critical estimated to maintain cover for as be accessed on or around age at home. Each of our Pegasus Guaranteed insurability options illness cover. This comes with no Provided on a joint life second long as they desire. 65. This will take into account plans have built in flexibility to are allowed on all standard rated additional effort from you or your death or single life basis, the plan the change in your client s increase the amount covered to Pegasus cases up to a maximum clients other than ticking a box. covers all IHT requirements and This type of cover is commonly circumstances and the financial reflect the following changes 150,000 of additional cover or has added flexibility to adapt used for business protection on implications of them suffering a in circumstances: original sum assured. This must This feature offers the following to the changing values of your a key person. It is also suitable to critical illness. be taken up before the age of 55. benefits: client s assets and to changes cover IHT liabilities, for instance Retirement option covers the illnesses and disabilities most Personal Assurance Plan Mortgage increase, marriage/civil partnership and family increase They offer valuable cover as your clients will not have to provide further medical evidence and the After a critical illness claim, life cover remains in force in legislation. to age 85, where your client may need some time to make arrangements to gift their assets likely to affect your clients in their option, career progression. additional cover will be provided Flexibility to have different as they no longer require cover. later years such as: Alzheimer s on the terms and conditions of levels of life cover and critical disease, blindness, deafness, Wealth Preservation Plan the original plan. illness cover dementia, loss of independent existence and Parkinson s disease. In addition to the above options there is an inheritance tax (IHT) These features are the mark of a One plan fee instead of two option which allows an increase quality, comprehensive protection Flexibility to place either or both in cover if the IHT rate changes. plan. Please be aware, if you do benefits under separate trusts. make changes to your client s plan, their premium may go up or down depending on the changes made. Please note we do not cover all critical illnesses and exclusions and limitations may apply. We do not cover all forms of cancer. Full details, including terms and conditions and exclusions and limitations, can be found in our product literature. Self Assurance plans have no cash-in value at any time. Pegasus plans may have a cash-in value, which may fall as well as rise and is not guaranteed. Please note that if your client s stop paying their premiums they will no longer be covered for their benefits, the plan will end and they will not get anything back.

13 Self Assurance (term) Self Assurance and Pegasus Income option Increase options Extra benefits Critical illness buyback ABI+ Children s critical illness cover Self Assurance offers a cost Needs at home and work change We provide extra cover for By selecting cover buyback at We offer a comprehensive set We provide children s critical effective alternative to lump sum and in recognition of this fact clients with multiple benefits in outset, your clients can take of critical illness conditions. illness cover at no extra cost as we benefits. The income option we provide increase options for their plans. We provide not one, out additional critical illness cover. These conditions provide your understand that critical illnesses offers cover at a lower cost than Self Assurance to change with but two additional benefits This will provide them with clients with one of the widest can happen at any age, even in the lump sum option, suitable for your client s protection needs. if disability income benefit valuable extra cover following breadth of cover in the market, childhood. We cover 34 children s those budget conscious clients. Whether it is by getting married, (income protection) and critical a successful claim. The buyback with seven of the definitions critical illness conditions. having a family, moving house or illness benefit have both been benefit is up to a maximum of exceeding the ABI standard It is ideal for meeting client s making home improvements the chosen. The additional benefits 100,000 and covers the top definitions. We pay a lump sum of 50% of needs to maintain regular income Self Assurance plan allows your are children s income benefit, three causes of critical illness the main critical illness benefit, throughout the term of their client s cover to be increased to and immediate cash benefit claims; cancer, heart attack up to 20,000 for each child. plan, for example, maintenance meet their changing circumstances. (subject to terms and conditions). and stroke. If both parents have separate payments for children, education critical illness cover, a claim can fees or income replacement. Changes also happen in the We are one of the few providers be made under each cover which We include an option to convert business world, so our increase who offer this valuable product provides a maximum lump sum the income payments at claim options for business cover are feature. The cost of the benefit, of 40,000. into an equivalent lump sum specifically tailored to cover which must be chosen at the payment should your client s changes such as increases in outset is included in your client s needs change. business loans or shareholding premium. and increases to share value or the value of an important employee. If a claim is made premiums for the critical illness cover will stop All of our options can be and your clients will only be accessed without providing asked to pay a premium of 25 further medical information and each year when the buyback the increased benefits all follow benefit has started. Children s the original terms and conditions critical illness cover will continue of your client s plan. throughout at no extra cost.

14 Pegasus (whole of life) Self Assurance (term) Plan type Death Critical illness IHT Available on Who is covered? Benefit payable as Premium basis Safeguard cover Ultimate cover Wealth Preservation Plan Single life Joint life (first event) Joint life (second event) Lump sum Annual instalment option Standard Maximum Specified Career Retirement Type of premium Reviewable Product features Death Critical illness IHT Additional benefits Definition for TPD WOP definition of disability Life cover Terminal illness cover Children s critical illness benefit Premium protection (waiver of premium) Retirement cover Split sums assured Free cover Own occupation Work tasks Own occupation Work tasks Buyback Available at outset Replacement cover On joint life plans Indexation Guaranteed insurability options Fund links Indexation option Estate value increase option Mortgage increase Marriage / civil partnership Career progression Partnership or shareholder business development Key employee Inheritance tax change option Safety Growth Opportunity Surrender value On cancellation of plan Helplines Lifeline Minimum / maximum details Maximum benefit (lump sum / non indexation) 10m 1.5m 2m 10m Min / max age at entry 16 / / / 84 Min premium (each plan) Personal Assurance Plan Business Assurance Plan Wealth Preservation Plan Personal and Business Assurance Plans Optional Plan type Death Critical illness Available on Who is covered? Type of benefit Benefit payable as Death or earlier critical illness Disability income benefit (income protection) Personal Term Plan Unemployment benefit Mortgage Term Plan Business Term Plan Single life Joint life (first event) Level Decreasing (0% - 18%) Increasing Lump sum Income Available as Standalone benefit Type of premium Type of benefit term Guaranteed Only available with another benefit Reviewable Fixed (5-40 years) Renewable (5 / 10 years) Product features Death Critical illness Additional benefits Definition for TPD or incapacity Death or earlier critical illness Children s benefit Premium payment benefit (waiver of premium) Disability income benefit (income protection) Children s income benefit and immediate cash benefit included automatically at no extra cost when CI benefit is also selected. Unemployment benefit Terminal illness cover Free cover Own occupation Work tasks Buyback Available at outset Helplines Increase options Minimum / maximum details Lifeline JobCare Childbirth / adoption Marriage / civil partnership Salary increase Business loan Increase in value of an important employee Increase in shareholding Increase in share value Maximum benefit (Lump sum / non indexation) 10m 2m 2m 3m 2m 2m 3m 126,000 a year 24,000 a year Max age at entry / expiry 79 / / / / / 65 Min premium (each plan) Personal Term Plan Business Term Plan Mortgage Term Plan Personal, Mortgage and Business Plans Optional Min benefit of 100 a month

15 Help and information is available to you online, at any time, or through our dedicated Salesline team. Visit our website for a wide range of downloadable sales aids and much more. For more information on any Scottish Provident product or any of the services featured in this brochure, contact your sales consultant or a member of our Salesline team, on (option 2). Useful numbers: Underwriting helpline: Speak with our underwriting team to check details before you submit a case, or ask about a specific illness or occupation. Claims helpline: Specially trained advisers can help you support your clients through this difficult time. Large case team: Our dedicated large case team, gives the very best service for these important cases. To qualify for this service, applications will need to be for a minimum sum assured or premium. Tax and trust support: taxtrust.techsupport@scotprov.co.uk us for help and support on all general and protection specific taxation and trust related protection issues. Scottish Provident is a division of the Royal London Group which consists of The Royal London Mutual Insurance Society Ltd and its subsidiaries. The Royal London Mutual Insurance Society Ltd is authorised and regulated by the Financial Services Authority No and is registered in England and Wales No The registered office is 55 Gracechurch Street, London, United Kingdom EC3V 0RL. SCPR5836 SEP10 LCC