Key Features of the Immediate Lifetime Care Term Assurance Plan Reference LTCKFDIMMTA 10.14 The Financial Conduct Authority is a financial services regulator. It requires us, Friends Life Limited, to give you this important information to help you decide whether the Immediate Lifetime Care Term Assurance Plan is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. Please read this document with the accompanying quote. Where relevant information is contained in other documents these will be signposted at the appropriate point. The purpose of this document is to help you make an informed decision. What is the Immediate Lifetime Care Term Assurance Plan? It s an insurance Plan that will provide a one-off lump sum if you should die during the term of the Plan. There are two Premium Protection options you can choose from, please read the Questions and answers section of this document for more information on short term and long term premium protection. The benefit payable reduces over time and will also depend on which Premium Protection option you select. Who should consider the Immediate Lifetime Care Term Assurance Plan? You should consider this plan if you are aged 60 or over, reside in the UK and expect to receive formal care for the rest of your life, either in a care home or at home, for which you have to pay. Planholders should be aged 60 or over and reside in the UK at the time of application.
Key Features of the Immediate Lifetime Care Term Assurance Plan Its aims To provide a lump sum free of personal income tax and capital gains tax if you should die during the term of the Plan. This lump sum is designed to repay a proportion of the Single Premium you have paid for this Plan and the Plan providing your Immediate Lifetime Care benefits. Your commitment To pay the Single Premium which is due. Risks There will be no return on the Plan if you survive beyond the end of its term. Your Plan has no cash-in value at any time. Any death benefit payable will be included in your estate for inheritance tax purposes. Questions and Answers Can I change my mind? You can change your mind within 30 days from when we inform you the Plan has been concluded and you receive Your right to change your mind form. If for any reason you decide that you do not want to take out this Plan, just return the form within 30 days to the address detailed in the How to contact us section and we ll give you your money back. If you do not exercise your right to cancel within this period your Plan will continue in accordance with the Plan terms and conditions and any decision to cancel at a later date will be subject to those terms and conditions. What are the charges? All charges are included in the Single Premium you pay for your Plan. Our administration costs are covered within the premium and the payments made by your plan reflect this. However, your adviser may make a charge for advice given. We are able to facilitate this charge on your behalf, which will be added to your premium, or you can pay your adviser directly. What will my Single Premium be? Your personal illustration shows the Single Premium due for the Premium Protection option you have chosen. How does the Short Term Premium Protection option work? Basic Cover At the outset of your Plan you select 25%, 50% or 75% of your total Single Premiums to both this Plan and your Immediate Lifetime Care Plan for your Basic Cover. If you should die within three months from the start date of your Plan, your Basic Cover will pay out an amount equal to your selected percentage of the total Single Premiums to both this Plan and your Immediate Lifetime Care Plan less the Reduction Amount. Please refer to your illustration for an explanation of the Reduction Amount. 2
If you should die within the first month from the start date of your Plan, your selected percentage for the Basic Cover will automatically be increased to 100%. Please refer to your illustration for the different costs relating to this protection option. Extra Cover You can increase the term of cover for your Short Term Premium Protection option from three to six months by selecting Extra Cover for the three month period after your Basic Cover has finished. If you should die after three months but within six months from the start date of your Plan, your Extra Cover will pay out an amount equal to your selected percentage of the total Single Premiums to both this Plan and your Immediate Lifetime Care Plan less the Reduction Amount. Once again at the outset of your Plan you select 25%, 50%, or 75% of your total Single Premiums to this Plan and your Immediate Lifetime Care Plan for your Extra Cover. However, the percentage you select must not be greater than the percentage you have selected for your Basic Cover. Please refer to your Illustration for the different costs relating to this protection option. What combinations of Basic and Extra Cover can I have for the Short Term Premium Protection option? The combinations allowed are shown in the table below: Basic Cover % Extra Cover % Chosen Chosen 25% 50% 75% 25% Yes No No 50% Yes Yes No 75% Yes Yes Yes How does the Long Term Premium Protection option work? At the outset of your Plan you select 25%, 50%, or 75% of the total Single Premiums to this Plan and your Immediate Lifetime Care Plan to be covered. If you should die the Long Term Premium Protection option will pay out an amount equal to your selected percentage of the total Single Premiums to both this Plan and your Immediate Lifetime Care Plan less the Reduction Amount. If you should die within one month of the start date of your Plan your selected percentage for the Long Term Premium Protection option will automatically be increased to 100%. No payment will be made if you should die on or after the date when the Reduction Amount exceeds your selected percentage of the total Single Premiums to both this Plan and your Immediate Lifetime Care Plan. Please refer to your illustration for the different costs relating to this protection option. 3
Key Features of the Immediate Lifetime Care Term Assurance Plan What about tax? The death benefit is paid free of personal income tax and capital gains tax although it will be part of your estate for inheritance tax purposes. Tax information is based on our interpretation of current legislation. Tax details are subject to change and their value will depend on individual circumstances. Your financial adviser will be able to give you more information about your own tax position. Further information How to contact us Your financial adviser will normally be your first point of contact. If you have any questions, you can phone or write to us. Call us on: 0845 30 30 430 Monday to Friday 8.30am 5.30pm. As part of our commitment to quality service, telephone calls may be recorded. If you wish to exercise your right to cancel your Plan or to write to us for any other matter please use the following address: Friends Life (Lifetime Care) PO Box 582 Bristol BS34 9FX United Kingdom Or you can email us at: lifetimecare@friendslife.co.uk Please note that this email may not be secure and it is therefore possible that it could be intercepted and read. Please do not include any personal or confidential information. Client categorisation Friends Life categorises each investment customer as a retail client. This gives you the highest level of protection available under the Financial Conduct Authority Conduct of Business Rules. This includes access to the Financial Services Compensation Scheme or Financial Ombudsman Service. Please contact your financial adviser if you require further details. If a financial adviser recommends this plan, you have a legal right to compensation if the Financial Ombudsman Service decides it wasn t suitable for your needs at the time. However, you will not be covered for unsuitable advice unless this product was personally recommended to you by a financial adviser authorised by the Financial Conduct Authority. How to complain If you are not satisfied with any aspect of the service that you have received from us, please contact us using any of the methods detailed in the How to contact us section. Information regarding our formal complaints procedure is also available from the same contact points. Complaints we cannot settle may be referred to the Financial Ombudsman Service at: Exchange Tower Harbour Exchange Square London E14 9SR Telephone: 0800 023 4567 or 0300 123 9123 Website: www.financial-ombudsman.org.uk Email: complaint.info@financial-ombudsman.org.uk Making a complaint will not prejudice your right to take legal proceedings. 4
Compensation We are covered by the Financial Services Compensation Scheme (FSCS). If we cannot meet our obligations, you may be entitled to compensation under the scheme. For this type of plan, the scheme covers at least 90% of the claim. For further information see www.fscs.org.uk. Alternatively, you can contact the FSCS on 020 7741 4100 or 0800 678 1100. Terms and conditions This Key Features document gives you a summary of the Immediate Lifetime Care Term Assurance Plan. It does not include all the definitions, exclusions, terms and conditions. These are shown in the conditions booklet. If you would like a copy please ask your financial adviser or contact us. Financial Advisers Where you have received information or advice the adviser will provide you with information regarding their identity, the capacity in which they are acting and their address for future communications. Law and language This Plan is governed by the Law of England and Wales. Your contract will be in English and we will always write and speak to you in English. Key Features document information If the illustration supplied to you contains an expiry date and you wish to make an application after this date, you should ask for a further illustration and Key Features document from your financial adviser. The date when the Key Features document was produced is shown at the end of the document. If you are not sure if you have the most up to date version you should ask your financial adviser. Visual impairment Large Text, Braille and Audio Tape versions are available on request. About Friends Life Friends Life Limited is the provider of the Lifetime Care range of plans. Friends Life Limited is entered on the Financial Services Register. Registration number: 196142. www.fca.org.uk/register 5
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Head office: PO Box 582, Bristol BS34 9FX. Friends Life Limited An incorporated company limited by shares and registered in England and Wales, number 4096141. 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 0845 303 0430 calls may be recorded. www.friendslife.co.uk/lifetimecare Friends Life is a registered trade mark of the Friends Life group. LTCKFDIMMTA 10.14 (44687)