KEY FEATURES OF THE NFU MUTUAL MORTGAGE TEMPORARY ASSURANCE POLICY PROTECTION

KEY FEATURES OF THE NFU MUTUAL MORTGAGE TEMPORARY ASSURANCE POLICY PROTECTION

The Financial Conduct Authority is a financial services regulator. It requires us, NFU Mutual, to give you this important information to help you decide whether our Mortgage Temporary Assurance Policy is right for you. You should read the document carefully so that you understand what you are buying, and then keep it safe for future reference. This Key Features Document is intended to give you a brief explanation of the most important features of the Mortgage Temporary Assurance Policy. The full terms and conditions are in the policy document. If you d like a copy of these, please ask your NFU Mutual Financial Adviser, or: call us on 0800 622323 write to us at: NFU Mutual, Life Services, Tiddington Road, Stratford upon Avon, Warwickshire CV37 7BJ. We ll always send you a personalised copy of the policy document when we ve set up your Mortgage Temporary Assurance Policy.

CONTENTS 02 Who should buy this product? Its Aim Your Commitment Risks 03 What is the Mortgage Temporary Assurance Policy? How much does it cost? How long does the cover last? How much does the policy pay out? 04 Who can take out a policy? How do I pay premiums? What if I stop paying premiums? When won t the policy pay out? 05 What happens if I die during the period of cover? Can I transfer ownership of my policy? How do I take out a policy? When does cover start? What is Interim Cover? How much Interim Cover is provided? When will the Interim Cover start and how long does it last? 06 What s not covered by Interim Cover? Can I use Interim Cover to cover a loan? What if I change my mortgage? What if I have a tenancy in common mortgage? 07 What are the charges? What about tax? Can I change my mind? How to contact us including making a claim Making a complaint 08 Other information: Law and language used Compensation About NFU Mutual Our Mutuality Your policy document Is this product right for you?

WHO SHOULD BUY THIS PRODUCT? People with repayment mortgages who want financial protection if they die. ITS AIM To pay a cash lump sum if you die during the period of cover. YOUR COMMITMENT You must: Answer all our questions truthfully, accurately and completely to the best of your knowledge when applying for (or restarting) your policy, and when making a claim. If you don t, we may not pay a claim. Tell us if there is a change to your: health family medical history occupational duties overseas travel country of residence hazardous leisure activities from the date you apply for cover (or to restart cover) until the date your policy starts (or restarts). If you don t tell us we may not pay a claim. Pay premiums by direct debit, monthly or yearly, during the period of cover. If you don t your cover may stop. RISKS Claims We won t pay a claim in certain circumstances. Please read the later section When won t the policy pay out? on page 4. If you haven t been honest or accurate in providing information at the time you apply for the cover or at the time of a claim, we may not pay a claim. Paying premiums If you stop paying premiums, or you don t pay on time, we ll cancel your policy one month after the date your payment was due and your cover will end. You ll get nothing back. Repaying your mortgage This policy may not pay off your mortgage in full if: during the period of cover your mortgage interest rate has been higher than 9% your mortgage payments aren t up to date you ve changed your mortgage and not changed your cover you take out cover for less than your mortgage. Please read the section How much does the policy pay out? for more details. About tax The tax treatment depends on the individual circumstances of each customer and may be subject to change in future. Please read the section What about tax? for more information. 02

QUESTIONS AND ANSWERS What is the Mortgage Temporary Assurance Policy? It s an insurance policy that pays out a lump sum if you die during the period of cover. The lump sum reduces each month. The cover is intended to go down as your mortgage reduces. Please read the section How much does the policy pay out?. You can set it up with one owner or up to four joint owners. You can cover one or two lives. It has no cash-in value at any time. How much does it cost? You pay regular premiums to keep your cover. Your premium amount depends on: your personal circumstances, for example, your age, health, occupation and whether you smoke the amount of cover how long your mortgage term is. Your premium won t change during the period of cover. Your illustration shows how much your policy might cost. If you haven t received an illustration, or you want an alternative personalised one, please call us on 0800 622323. How long does the cover last? You must set the policy up so that the cover lasts until your mortgage finishes. It must be a number of whole years between 5 and 50. The period of cover must end before any person whose life is being covered reaches age 75. The policy will finish at the end of the period of cover, or when we pay a claim. How much does the policy pay out? You would normally start the policy with cover at the same amount as your mortgage. Your mortgage amount will reduce as you make repayments to your lender. The level of cover on your policy will also reduce each month. The reduction in cover won t be based on your own mortgage interest rate it will assume a fixed mortgage interest rate of 9%. If your mortgage interest rate goes higher than 9% during the period of cover, the lump sum we pay on a claim could be less than needed to pay off your mortgage. If your mortgage interest rate is lower than 9%, the lump sum we pay on a claim could be more than needed to pay off your mortgage. 120000 The chart below shows how a mortgage would reduce over the mortgage term using assumed mortgage interest rates of 6%, 9% and 12%. 100000 Mortgage amount 80000 60000 6% 9% 40000 12% 20000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Mortgage term Key Features of the NFU Mutual Mortgage Temporary Assurance Policy 03

The lump sum may be less than your mortgage if: your mortgage payments aren t up to date you ve borrowed more money or extended the term and not changed your cover you take out cover for less than your mortgage. Who can take out a policy? You can take out a policy if: you have a repayment mortgage you re named on the mortgage deed you re 18 or over any person whose life is covered is under 70. How do I pay premiums? Monthly or yearly by direct debit. If you re paying from a business account that s not solely or jointly in your name(s) we might carry out security checks to confirm where the money is coming from. We may require additional information about the business, including evidence of identity for anyone who owns a share in the business, as required under the Money Laundering Regulations. We may refuse to accept payment. What if I stop paying premiums? We ll cancel your policy one month from the date your last payment was due, and you ll get nothing back. If you want to start paying into your policy again, you can apply to restart it within six months of when your first unpaid premium was due. You ll have to pay any premiums you ve missed and we ll charge a late payment fee of 1.5% of the amount due. We ll also ask you to provide evidence of your health. There s no guarantee we ll allow you to restart your policy. You ll need to contact us at the address given under How to contact us to ask us about restarting your policy. When won t the policy pay out? We won t pay a claim and may cancel your policy, if: You don t answer all our questions truthfully, accurately and completely to the best of your knowledge and provide any information we ask for when applying for (or restarting) your policy, and when making a claim. You don t tell us about any of the following changes that happen between applying for (or restarting) your policy and when it starts (or restarts). Changes to your: health family medical history occupational duties overseas travel country of residence hazardous leisure activities. Your death is due to suicide and this happens during the policy s first year, or within the first year after you ve restarted it. Please refer back to the section What if I stop paying premiums? for information on restarting. The suicide exclusion won t apply in the conditions explained in the later section Can I transfer ownership of my policy?. Full details of what s covered and any standard items that aren t covered are set out in clauses 3 and 8 of your policy document. You can ask us for a sample copy of this, see How to contact us. 04

What happens if I die during the period of cover? We ll pay the death benefit to the legal owner of the policy. If it s set up to cover someone else s life, we ll pay the death benefit when that person dies. If it s set up to cover two lives, it will pay on the first death. Your policy will end when we pay a death claim. Can I transfer ownership of my policy? You can transfer ownership to another person or company. In legal terms this is known as an assignment. If you do this please let us know, so that we know who is legally entitled to the benefits. If your policy has been assigned we would pay a claim if death is due to suicide in the first year (or within one year after restarting the policy) unless you assigned the policy as a gift. How do I take out a policy? You (and any person to be covered) must fill in an application form. We may request medical evidence of health for any person to be covered/or other additional information. When we ve considered your application, we ll let you know: if we ll accept your application without making any changes to the policy if you need to pay a higher premium than the one shown in your illustration if we need to restrict your cover if we won t accept your application. When does cover start? Your policy will start once we ve accepted your application and you ve agreed the premium and any special terms or conditions. If you re a UK resident and under age 60 when your application and direct debit forms are completed and signed we ll give you Interim Cover. If the policy covers two lives, both must be under age 60 for Interim Cover to apply. What is Interim Cover? It s a temporary arrangement that ll provide cover if you die while we re processing your application. How much Interim Cover is provided? Under Interim Cover we ll pay the lower of: the amount of cover you ve requested in your application, or 300,000. When will the Interim Cover start and how long does it last? It will start on the date of your signed application and direct debit form. It will stop on the earlier of: 90 days from the date you signed your application the day before your policy documents are issued if we don t receive medical information we ve asked for, four weeks from the date we requested it the date you withdraw your application, if you decide you no longer wish to proceed with it the date we tell you that your application is being turned down or delayed by us. We may delay your application if we re unable to make a decision until a future event has happened. For example, we may want to delay our decision until you ve had medical treatment. Key Features of the NFU Mutual Mortgage Temporary Assurance Policy 05

What s not covered by Interim Cover? We won t pay an Interim Cover claim if it s as a result of: or related to a condition where you received treatment, advice or counselling from a medical practitioner at any time or related to a condition or symptoms you should have been aware of at the time of the application but for which you hadn t sought treatment, advice or counselling from a medical practitioner suicide or intentional self-inflicted injury alcohol abuse or the misuse of drugs taking part in any flying activity other than as a passenger in a commercially licensed aircraft taking part in or practising for boxing, bungee-jumping, caving, climbing with ropes, horse-racing, contact martial arts, mountaineering, off-piste skiing, potholing, powerboat racing, yacht racing or any race, trial or timed motor sport. Also, we won t pay an Interim Cover claim if: you ve applied for other life insurance cover to us or to any other life company within 90 days of the date of your application for our Mortgage Temporary Assurance Policy you don t give us all the information we ask for in the application form we discover that information given in the application form is untrue, inaccurate or incomplete (even if it doesn t relate to the cause of the Interim Cover claim) when you completed your application, you were living outside of the UK or you were living temporarily in the UK but normally live outside of the UK you die outside the Interim Cover period. Can I use Interim Cover to cover a loan? We don t recommend that you use Interim Cover for this purpose. Interim Cover is short-term cover and may be withdrawn as already explained. By providing Interim Cover, we re giving no commitment about the terms, if any, on which we may offer to insure you under this policy, or any other policy. What if I change my mortgage? If you move house and take out a new repayment mortgage, increase your mortgage or extend its term, you may be able to cancel your policy and take out a new one without having to provide further medical evidence. This option will only be available if we re still offering the same type of policy. The new policy would be on our terms and conditions and premium rates applying at that time. There are various limits, depending upon such things as your age, the remaining mortgage term and the amount of cover you need. These are explained in clauses 9 and 10 of your policy document. What if I have a tenancy in common mortgage? A tenancy in common mortgage involves you and at least one other person taking out a mortgage but where each of you is only responsible for your share of the amount borrowed. You have two choices: You can apply for cover to protect only your share of the repayment mortgage if you die during the period of cover. Your cover should start at the same amount as your share of the mortgage. The cover will decrease each month, as previously explained under How much does the policy pay out?. 06

The policy won t pay out any amount that you re jointly responsible for with any other person or as guarantor. You can take out cover for a tenancy in common mortgage, jointly with the other borrower or borrowers, for the whole amount of the repayment mortgage. The policy will pay out the whole amount covered on the death of the first to die. You will need to agree with the other borrower or borrowers how any proceeds of the policy will be dealt with. What are the charges? Your illustration shows how much it will cost to get the cover you want. This cost reflects any charges we may make to cover the costs of setting up and managing your policy, including any commission, remuneration or advice charges. What about tax? The tax treatment depends on your individual circumstances. It may change in future. Under current tax rules you won t have to pay UK income tax or capital gains tax on any lump sum paid from your policy. The policy s death benefit will form part of your estate for inheritance tax purposes. You can use a trust to help with inheritance tax planning. Ask your NFU Mutual Financial Adviser for more details. Can I change my mind? You ll have 30 days to change your mind about your Mortgage Temporary Assurance Policy. We ll write and tell you when the 30 days starts. You can cancel within the 30 days and have your money back. If you change your mind, write to us at the address given under How to contact us. If you don t cancel within the 30 days, your policy will continue as set out in these key features and your policy document. You should remember that your policy has no cash in value at any time. How to contact us including making a claim If you want to: cancel your policy change your policy cover (if your mortgage changes) make a claim transfer ownership of your policy ask any other questions Or call us on 0800 622323. Our telephone lines are open on weekdays from 8.30am to 6.00pm. We may record telephone calls for training, monitoring or security purposes. write to us at: NFU Mutual Life Services Tiddington Road Stratford upon Avon Warwickshire CV37 7BJ Making a complaint If you need to make a complaint, please write to us or call us on 0800 622323, as indicated above, and we will do all we can to resolve the complaint to your satisfaction. If you re not satisfied with our response to a complaint, you can contact: The Financial Ombudsman Service (FOS) Exchange Tower London E14 9SR 0300 123 9123 www.financial-ombudsman.org.uk Making a complaint won t affect your legal rights. Key Features of the NFU Mutual Mortgage Temporary Assurance Policy 07

OTHER INFORMATION Law and language used Under English law, people making contracts can choose which law applies. The law of England will apply to this Mortgage Temporary Assurance Policy, unless you ve agreed otherwise with us before it starts. Your policy and all our other communications with you will be in English. Compensation If NFU Mutual is unable to pay claims because of financial difficulties, you may qualify for compensation from the Financial Services Compensation Scheme. You can contact the Financial Services Compensation Scheme for further details, on 0800 678 1100 or 020 7741 4100, or www.fscs.org.uk About NFU Mutual NFU Mutual is The National Farmers Union Mutual Insurance Society Limited. It s a registered company that s limited by guarantee, which means its capital isn t divided into shares. Its Head Office is in the United Kingdom of Great Britain and Northern Ireland, situated at: Tiddington Road Stratford upon Avon Warwickshire CV37 7BJ NFU Mutual s main business is providing financial services and general insurance. It s authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority and is on the Financial Services Register under number 117664. You can contact the Financial Conduct Authority as follows: Consumer helpline: 0800 111 6768 Our Mutuality We are a Mutual company, which means we have no shareholders. We aim to pass on the benefits of mutuality to our financial services customers by low charges and personalised service. In the unlikely event of de-mutualisation, any windfall payment arising from the policy you re taking out would be paid to The NFU Mutual Charitable Trust, instead of to you. Your policy document This key features document gives you a brief explanation of the most important features of the Mortgage Temporary Assurance Policy. It s based on our understanding of current law and tax practices, which can change. The full terms and conditions are in the policy document. If you d like a sample copy of this, please ask your NFU Mutual Financial Adviser, or contact us as explained under How to contact us. We ll always send you a personalised copy of this when we ve set up your policy. Is this product right for you? If you re unsure if this product is right for you, please speak to your NFU Mutual Financial Adviser or call one of our Telephone Financial Advisers on 0800 622323. NFU Mutual Advisers advise on NFU Mutual products and selected products from specialist providers. We ll explain the advice services we offer and our charges. 25 The North Colonnade Canary Wharf London E14 5HS www.fca.org.uk 08

nfumutual.co.uk NFU Mutual is The National Farmers Union Mutual Insurance Society Limited (No. 111982). Registered in England. Registered Office: Tiddington Road, Stratford upon Avon, Warwickshire CV37 7BJ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. A member of the Association of British Insurers. For security and training purposes, telephone calls may be recorded and monitored. KFD/MTA/01.12.14