protection Security in an insecure world Protection Cover

Transcription

1 protection Security in an insecure world Protection Cover

2 About the company Hibernian Life & Pensions is a subsidiary of Hibernian Life Holdings, a joint venture company between Hibernian Group and AIB Bank for the provision of life and pensions services in Ireland. Our membership of the Hibernian Group means we re backed by the strength of Aviva plc, the world s fifth largest insurance group with life assurance operations in over 50 countries worldwide and funds under management of over 317 billion. We are very proud of our strong reputation in Ireland. Our activities include pensions and life assurance, managing investments, general insurance and personal financial services. Our aim is to provide an efficient and professional service through a range of channels such as independent financial advisers, tied agents, financial institution partners, Hibernian branches and our website Good thinking is at the heart of everything we do. From our intelligent, original products and services to our commitment to security, quality and value, we are constantly thinking of new ways to meet our customers needs today, tomorrow and in the future. So that whenever you re thinking ahead, think Hibernian.

3 What does this brochure cover? + Who, what & why? 3 + Life Term Cover 4 + Serious Illness Cover 6 + Mortgage Protection Cover 11 + Guaranteed Whole of Life Cover 14 + Standard Restrictions 16 What will I get from reading this brochure? Hibernian Life & Pensions has the most comprehensive range of products for Life and Serious Illness cover. We aim to give you security throughout your life with our range of innovative products. This brochure guides you through our product range, outlining all product details, features and benefits. Important: This brochure is relevant to applications for cover submitted by 31st January

4 Who, what & why? Why would I need cover and what type of cover do I need? + Life Cover can be used to provide family protection or to ensure the financial survival of your business in the event of the death of a director or key employee. + Serious Illness Cover will give you peace of mind. It provides a lump sum payment on the diagnosis and certification of a prescribed serious illness. + Mortgage Protection Cover is essential for anyone buying their home. This cover can be used to secure your mortgage with the bank. + Whole of Life Cover can provide family protection and inheritance tax provision. 3

5 Life Term Cover Level Term Cover This cover provides a lump sum benefit if you die during the term of the contract. The term of the contract is decided by you at outset. Convertible Term Cover This cover allows you to convert, at any time during the plan term, part or all of your cover to an alternative cover. When you convert, you will not need to provide medical details or undergo any medical examinations. You can convert into one of the following: + Level Term Cover expiring before age 80 or + Whole of Life Death Benefit or an Endowment Plan if available at the time of conversion. Cover Term and Age Limit Life Term Cover has a fixed term, which you select at outset. The maximum term depends on the cover, age at entry and whether or not the conversion option is included. Premiums The minimum premium is monthly or 125 yearly. Premiums will depend on your age, sex, the term of the contract and whether you smoke. Cover Cover can be arranged on a single, dual or joint life basis. Joint life cover provides a lump sum on the first death. The minimum cover is 12,500 for single, dual and joint life policies. Life Cover Cover Type Entry Age Maximum Expiry Age From Up to Level Term Cover Convertible Term Cover Minimum Term 2 years Maximum Term 40 years All ages shown on an Age Next Birthday basis 4

6 Life Term Cover Automatic Benefits of Life Cover Terminal Illness Benefit This applies to all level and convertible term policies. We will pay up to 80% of the sum assured (up to a maximum of 2m) on the diagnosis of a terminal illness. The diagnosis must take place at least 18 months before the end of the term and the life expectancy must be of 12 months or less. The balance of the sum assured will be paid on death within the cover term. Premiums will continue to be payable in full after a terminal illness claim has been made. Accidental Death Benefit This is an automatic benefit offered in the period when an application form is being processed. The following conditions apply: + Cover commences on receipt of a fully completed application form with a valid direct debit or cheque. The application must be free of any special health, occupation or pursuit risks. + Cover will be provided at a level equal to the life cover you applied for, subject to a maximum cover of 125, Cover will cease when processing of the application is complete subject to a maximum cover period of 30 days. Optional Benefits of Life Cover Indexation Option If this option is chosen the death benefit will automatically increase by 5% each year. The premium will increase by 8% each year to pay for the additional cover. Automatic indexation will continue up to the policy anniversary prior to your 65th birthday (or the 65th birthday of the elder of the two insured if the policy is joint life). You may decline this automatic increase by writing to us within 10 days of the effective date of any such increase. If two successive increases are declined the Indexation Option will cease. 5

7 Serious Illness Cover Standalone Serious Illness Cover This provides a lump sum payment on the diagnosis and certification of a prescribed serious illness as defined in the contract. The lump sum will be paid provided you survive for 14 days after the serious illness event. In the event of death before a serious illness claim is paid, we will pay a death benefit of 5% of the serious illness cover. Accelerated Serious Illness Cover This provides a lump sum on the earlier of death or the diagnosis and certification of a prescribed serious illness. In other words, it provides an accelerated payment of the life cover benefit. Cover Term and Age Limit Serious Illness Cover has a fixed term which you select at outset. The maximum term depends on the cover, age at entry and whether the conversion option is included. Premiums The minimum premium is monthly or 125 yearly. Premiums will depend on your age, sex, the term of the contract and whether you smoke. Cover Cover can be arranged on a single, dual or joint life basis. Joint life cover provides a lump sum on the first serious illness. The minimum cover is 12,500 for single, dual and joint life policies. Serious Illness Cover Cover Type Entry Age Maximum Expiry Age From Up to Without Conversion Option With Conversion Option Minimum Term 5 years Maximum Term 30 years All ages shown on an Age Next Birthday basis 6

8 Serious Illness Cover Automatic Benefits of Serious Illness Cover Benefit Prepayment Facility Half (50%) of the Serious Illness benefit will be paid (up to a maximum of 20,000) as soon as you are diagnosed as requiring one of the following: + Aorta Graft Surgery + Coronary Artery Bypass Surgery + Heart Valve Surgery We will require certification by a consultant that surgery is medically necessary and you must be on the waiting list for surgery. The Serious Illness benefit will be reduced by the amount of this prepayment. Children s Cover This provides for the payment of a lump sum in the event of one of your children becoming seriously ill. The lump sum will be 50% of the serious illness benefit, but with a maximum benefit of 25,000, or a death benefit of 2,500. Benefits will only be payable on one occasion in the event of a child contracting a Serious Illness or dying. Payment of this cover will not affect your main benefit. Muscular Dystrophy is excluded under the Children s Serious Illness Benefit. Terminal Illness Benefit (This applies to all level accelerated serious Illness policies) We pay up to 80% of the sum assured (up to a maximum of 2m) on the diagnosis of a terminal illness. The diagnosis must take place at least up to 18 months before the end of the term and the life expectancy must be of 12 months or less. The balance of the sum assured will be paid on death within the cover term. Premiums will continue to be payable in full after a terminal illness claim has been made. Note: Definition of Child A child is defined as, a natural, adopted, or stepchild aged between 1 and 18 years. Where the child is living at home and in third level education, cover continues to 21 years. Foster children are not covered. 7

9 Serious Illness Cover Optional Benefits of Serious Illness Cover Conversion Options If you choose the Conversion Option under the Serious Illness contract you can convert to one of the following, without providing further medical information: + Level Term Cover expiring before age 80, or, + Accelerated Serious Illness Cover expiring before age 65, or, + Standalone Serious Illness Cover expiring before age 65, or, + Whole of Life death benefit, or Endowment Plan, if available at the time. The Conversion Options are subject to the types of covers above being available at the date of conversion. If not alternative covers may be offered. The premium payable on a new policy taken out as a result of conversion will be based on our premium rates at that time, having regard to your age at the time of conversion. Indexation Option If this option is chosen the Serious Illness benefit will automatically increase by 5% each year. The premium will increase by 8% each year to pay for the additional cover. Automatic indexation will continue up to the policy anniversary prior to your 65th birthday (or the 65th birthday of the elder of the two insured if the policy is joint life). You may decline this automatic increase by writing to us within 10 days of the effective date of any such increase. If two successive increases are declined the Indexation Option will cease. 8

10 Serious Illness Cover Hospitalisation Cover This is an optional benefit for which you will be paid a cash amount for each night spent as an inpatient in a hospital. You must have been hospitalised for a minimum of 3 consecutive days (72 hours) and the benefit will be payable for a maximum continuous period of 1 year (365 days). Payment of the benefit is backdated to the commencement of your inpatient care. Hospitalisation while pregnant is covered provided that you are not hospitalised within 6 months of the start date of the policy. Children are automatically covered for an amount equal to 50% of your benefit. You must select a benefit amount of either 50, 100 or 150 per day. Surgical Cash Cover This is an optional benefit for which you will be paid a cash benefit when you undergo one of a qualifying number of surgeries. 10% of the Serious Illness benefit will be paid for a Major Surgery or 5% for an Intermediate Surgery. This is subject to an overall maximum payment of 125,000 in any 5 year period. Children are automatically covered for an amount equal to 50% of your benefit subject to an overall maximum of 62,500 over any 5 year period. If you or your child require a medically necessary surgical procedure or treatment which cannot be performed in any hospital in Ireland, an amount of 10,000 will be payable in addition to any surgical cash payable. Major Surgeries include procedures relating to: the Brain, Meninges, Lungs, Spinal Vertebrae, Hip Replacement, Knee Replacement, Spinal Cord or Spinal Canal. Intermediate Surgeries include procedures relating to: the Liver, Gall Bladder, Bile Duct, Kidney, Bladder, Ureter, Prostate, Pancreas, Spleen, Nerve Roots, Thyroid, Larynx, Inner Ear, Surgery of (Oesophagus, Stomach, Duodenum, Jejunum, Ileum, Colon, Rectum), Hysterectomy, Mastectomy, Amputation (replacement) of Limbs. 9

11 Serious Illness Cover Serious Illnesses Covered Serious Illness Heart Attack Cancer Stroke Kidney Failure Major Surgery Aorta Graft Surgery Coronary Artery Bypass Surgery Heart Valve Surgery Pulmonary Artery Surgery Major Organ Transplant Heart Lung Liver Kidney Pancreas Bone Marrow Disabling Conditions Total & Permanent Disability Multiple Sclerosis Blindness Benign Brain Tumour Cardiomyopathy Motor Neurone Disease Paralysis/Parapligea/Loss of Limbs Loss of Speech Loss of Hearing Coma Severe Burns Rheumatoid Arthritis Parkinson s Disease Alzheimer s Disease Chronic Lung Disease Major Head Trauma Muscular Dystrophy HIV/AIDS Creutzfeldt-Jakob Disease Chronic Liver Disease Systemic Lupus Erythematosus Bacterial Meningitis Aplastic Anemia Encephalitis For full details and definitions please refer to our Serious Illness Definitions brochure 10

12 Mortgage Protection Cover Mortgage Protection Life Cover This provides a lump sum benefit if you die during the term of the contract. This benefit decreases over the term of the contract in line with the outstanding capital on a mortgage. Mortgage Protection with Accelerated Serious Illness Cover This provides a lump sum payment on the earlier of death or the diagnosis and certification of a prescribed serious illness. This benefit also decreases over the term of the contract in line with the outstanding capital of your mortgage. Mortgage Repayment Cover This provides a monthly payment of 1% of the initial life cover amount if you are sick or disabled and unable to carry out your current occupation. This payment will be made for 2 years. After that, if you are unable to perform certain work related activities the claim will continue to be paid. Mortgage Repayment Plan This is a combination of Mortgage Protection Life Cover or Mortgage Protection with Accelerated Serious Illness Cover and Mortgage Repayment Cover. Cover Term and Age Limit Mortgage Protection Cover has a fixed term, which you select at outset. Mortgage Repayment Plan Cover Type Entry Age Maximum From Up to Expiry Age Mortgage Protection Mortgage Repayment Cover Minimum Term 2 years Maximum Term 40 years Mortgage Protection with Accelerated Serious Illness Cover Minimum Term 5 years Maximum Term 30 years All ages shown on an Age Next Birthday basis

13 Mortgage Protection Cover Premiums The minimum premium is monthly or 120 yearly, for Mortgage Protection Life Cover. For Mortgage Protection with Accelerated Serious Illness Cover or Mortgage Repayment Cover the minimum premium is monthly or 125 yearly. Premiums will depend on your age, sex, the term of the contract and whether you smoke. Cover Cover can be arranged on a single or joint life basis. Joint life cover provides a lump sum on the first death or serious illness. The minimum life cover is 12,500 for both single and joint life policies. Automatic Benefits of Mortgage Protection with Accelerated Serious Illness Cover Benefit Prepayment Facility Half (50%) of the Serious Illness benefit will be paid (up to a maximum of 20,000) as soon as you are diagnosed as requiring one of the following: + Aorta Graft Surgery + Coronary Artery Bypass Surgery + Heart Valve Surgery We will require certification by a consultant that surgery is medically necessary and you must be on the waiting list for surgery. The Serious Illness benefit will be reduced by the amount of this prepayment. Children s Cover This provides for the payment of a lump sum in the event of one of your children becoming seriously ill. The lump sum will be 50% of the Serious Illness benefit, but with a maximum benefit of 25,000, or a death benefit of 2,500. Benefits will only be payable on one occasion in the event of a child contracting a serious illness or dying. Payment of this cover will not affect your main benefit. Muscular Dystrophy is excluded under the Children s Serious Illness Benefit. Note: Definition of Child A child is defined as, a natural, adopted, or stepchild aged between 1 and 18 years. Where the child is living at home and in third level education, cover continues to 21 years. Foster children are not covered 12

14 Mortgage Protection Cover Optional Benefits of Mortgage Protection with Accelerated Serious Illness Cover Hospitalisation Cover This is an optional benefit for which you will be paid a cash amount for each night spent as an inpatient in a hospital. You must have been hospitalised for a minimum of 3 consecutive days (72 hours) and the benefit will be payable for a maximum continuous period of 1 year (365 days). Payment of the benefit is backdated to the commencement of your inpatient care. Hospitalisation while pregnant is covered provided that you are not hospitalised within 6 months of the start date of the policy. Children are automatically covered for an amount equal to 50% of your benefit. You must select a benefit amount of either 50, 100 or 150 per day. 13

15 Guaranteed Whole of Life Cover Family Protection The sudden death of a breadwinner can bring undue financial hardship for dependants. Whole of Life Cover provides funds that can compensate for loss of income, thus ensuring your family s welfare. Preservation of your Estate Inheritance tax can deplete the value of your estate. This is particularly harsh after you have worked hard to build up your assets over your lifetime. Whole of Life Cover can be set-up in such a way as to provide a lump sum that can be used to pay any tax arising, thereby maintaining your estate for the benefit of your chosen successors. Choice of Cover Cover can be arranged on a single life or on a joint life basis. Where the cover is chosen on a joint life basis, it can be payable on the first death or the second death. Premiums 60 per month/ 600 per annum for Guaranteed Whole of Life Cover. 14

16 Guaranteed Whole of Life Cover Automatic Benefits Terminal Illness Benefit Applies to Guaranteed Whole of Life Cover. This is an advance payment of the death benefit where your life expectancy is 12 months or less. 80% of the benefit may be paid in advance up to a maximum of 2m. A further 17.5% will be paid on your death. Premiums will continue to be paid during the intervening period. In joint life first death cases the benefit is available on the first life becoming terminally ill. In joint life second death cases the benefit is available on the terminal illness of the last survivor. Marriage/Childbirth/Increase in CAT liability On marriage, childbirth or an increase in Capital Acquisition Tax liability (due to a change in tax rates) the cover can be increased without the need to provide medical evidence or undergo a medical examination. An additional premium will be payable on the increased cover and will be based on your age, sex and smoker status at that time. The rates of premium applying at the time of increase will be used. This option is only available to cases accepted at standard rates at outset. Guaranteed Increasing Benefit Option For an extra premium you can have the option of increasing your benefit every three years without further medical evidence. The minimum increase allowable is 5% of the initial or previous benefit. The maximum increase is 15% of the initial or previous benefit. Where the increases are made more than once, the maximum accumulated increase is the lesser of 2 1 /2 times the original benefit and 630,000. The option will cease if not exercised at any third year anniversary and your future benefit will remain level. Age Limits Cover Type Min. Entry Age Max. Entry Age Guaranteed Whole of Life All ages shown on an Age Next Birthday basis 15

17 Standard Restrictions Discontinuance of Premiums Thirty days of grace are allowed for payment of premiums. If premiums are not received in this period, the plan will lapse. The plan does not acquire a cash value. Law and Taxation Each plan is subject to the laws of Ireland and all monies either into or out of the plan must be in Irish currency. Under current legislation, payments to planholders are not subject to personal taxation. Death Benefit In the event of death by your own hand (whether feloniously or otherwise) the Death Benefit shall be limited as follows: 1. Where death occurs before the first anniversary of the Start Date, no benefit shall be payable. 2. Where death occurs on or after the first anniversary of the Start Date, then any increases in Death Benefit within one year of death shall not become payable. However, if you have assigned your Death Benefit, for example to cover a loan, we will pay out the amount of cover required to pay off the loan. 16

18 Standard Restrictions Serious Illness Benefit and Mortgage Repayment Benefit 1. A Serious Illness benefit will only be paid provided you survive 14 days after the serious illness event date. If you have Standalone Serious Illness Cover, a death benefit of 5% of the Serious Illness Cover (benefit) will be payable if you die prior to a serious illness event or within the 14-day period after a serious illness event. This additional death benefit does not apply to Accelerated Serious Illness Cover. 2. No benefit will be payable if a serious illness or disability results directly or indirectly from: + self inflicted injury or illness or the taking of alcohol or drugs + failure to follow reasonable medical advice. 3. In the case of serious illness or disability, no benefit will be payable if a condition arises as a result of:- + war (declared or not) + participation in a riot, insurrection or civil commotion + a self inflicted injury or illness whether you are sane or insane + any Human Immunodeficiency Virus or Acquired Immunodeficiency Syndrome + breach of any law by you. 4. No benefit will be payable if in the opinion of our Chief Medical Officer a claim is made for a serious illness or a disability condition which was known to exist prior to the start date of the policy. 5. Any claim in respect of serious illness or disability shall be invalid if you (or your child, if relevant) are resident outside Western Europe (Andorra, Austria, Belgium, Channel Islands, Denmark, Finland, France, Germany, Gibraltar, Greece, Iceland, Ireland, Isle of Man, Italy, Liechtenstein, Luxembourg, Monaco, Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland and the United Kingdom), the USA or Canada, Australia or South Africa for more than 13 weeks in any 12 consecutive calendar months. 6. No benefit will be payable in respect of disability arising directly or indirectly as a consequence of participation in any of the following activities: Abseiling, bob sleighing, boxing, hang gliding, scuba diving, equestrian events, motor or motor cycle sports, mountaineering, rock climbing, potholing, caving, parachuting, paragliding, boat racing, professional sports and aviation other than as a fare paying passenger. 7. The payment of a claim will be governed by the policy conditions. 17

19 Hibernian Life & Pensions is committed to the provision of the highest possible standards of customer service. However, if you are dissatisfied with any aspect of our service, do let us know. We take all complaints very seriously - and aim to rectify any shortcomings as speedily as possible. If you wish to complain about any aspect of the service you have received, please contact Hibernian Life & Pensions directly. If your complaint is not dealt with to your satisfaction, you may refer your complaint to: Financial Services Ombudsman s Bureau 3rd Floor, Lincoln House, Lincoln Place, Dublin 2. Lo-call: Fax: enquiries@financialombudsman.ie Website: Making a complaint will not prejudice your right to take legal proceedings. The policy will be issued in Ireland and governed by the laws of Ireland. 18

20 Good Thinking Hibernian Life & Pensions Limited Registered in Ireland No Registered Office One Park Place, Hatch Street, Dublin 2. Member of the Irish Insurance Federation Hibernian Life & Pensions is regulated by the Financial Regulator Life & Pensions One Park Place, Hatch Street, Dublin 2. Phone (01) Fax (01)