Key features of Life Insurance

Transcription

1 Key features of Life Insurance Life Insurance provided by Aviva Santander UK plc sells Aviva Life Insurance

2 Insurance Key Features Life Insurance Life Insurance is provided by Aviva and brought to you in association with Santander, who sell Aviva life insurance products which include the Life Insurance policy. Any references to we, us or our refer to Aviva unless stated otherwise. You can use this policy to cover up to two people usually yourself and your partner, spouse or civil partner. Once you ve taken out your policy, we will send you a policy schedule which shows what is included and who is covered. Is it right for me? Yes, if you: n Want the peace of mind that a cash lump sum will be paid out if you die or are diagnosed with a terminal illness during the policy term. No, if you: n Want a policy that covers you if you are diagnosed with a specified critical illness. n Want a regular income to cover your monthly expenses if you re ill or injured. n Want a whole of life policy, which means you want to be covered for the rest of your life. n Want to be able to stop your policy and get your money back. Cover to suit your needs You can choose from three types of Life Insurance: What to do next: n Please ensure you read the key features document for further information. If you re not sure whether this product is suitable for you, your Santander adviser will be happy to help you with any questions. Level cover Mortgage decreasing cover Family decreasing cover This cover is often used to help pay off an interest only mortgage. It can also be used to protect your family. The cash lump sum we ll pay stays the same throughout your policy term. This cover is used to help pay off a repayment mortgage. The cash lump sum we ll pay decreases each month broadly in line with the amount outstanding on a capital and interest mortgage. It reduces by a fixed monthly interest rate. This cover is used where you want to protect your family by providing a cash lump sum that could be used to meet future expenditure. The cash lump sum we ll pay decreases each year. It reduces by a fixed amount based on your policy term. The cash lump sum can be used to help protect your family and/or your mortgage: n If you want to protect your family, the cash lump sum we pay can be used to help your loved ones maintain their lifestyle. n If you want to protect your mortgage, the cash lump sum can be used to help pay off some, or all, of your outstanding mortgage. If this is how you want to use your policy, please make sure you read the extra information in the mortgage cover section later in this document. 02

3 Key features The Financial Services Authority is the independent financial services regulator. It requires us, Aviva, to give you this important information to help you to decide whether our Life Insurance 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. Its aims n To pay out a cash lump sum if you die before your policy ends; or n To pay out a cash lump sum if you re diagnosed with a terminal illness before the last 12 months of your policy, and you re not expected to live more than 12 months. Risks n If you don t pay your premiums, your policy and your cover will end 30 days after your last premium was due. n If your policy ends because you haven t paid your premiums, you won t get any money back. n If you don t give us all the information we ve asked for, or if you give us incorrect information on your application, we may not be able to pay out when you make a claim and your cover may be cancelled. n If you decide to end your policy, you won t get any money back as the policy has no cash-in value. Your commitment n To answer the questions on your application correctly to the best of your knowledge. n To pay us regular premiums for a set number of years, or until you die or are diagnosed with a terminal illness, if earlier. n To tell us if any of the information you give us changes in the time between you completing your application and when we confirm that your cover will start. 03

4 Insurance Key Features Questions and answers What is Life Insurance? n It s an insurance policy which pays out a cash lump sum if: you die during the policy term; or you re diagnosed with a terminal illness before the last 12 months of your policy, and you re not expected to live for more than 12 months. Who can take out a policy? n You have to be aged between 18 and 89 to start the policy. n The policy can last between one and 55 years, but it has to stop before you reach age 91 at the latest. If you choose the waiver of premium option, the policy will have to end before you reach age 76 at the latest. What s included? n We include life cover for you, and any other person insured on the policy. n We include terminal illness benefit for you, and any other person insured on the policy, if the policy has a term of over 12 months. Protection Promise (underwriting cover) We also include up to 90 days free life cover from the date we receive your application to when we make a decision: n We ll cover you for up to 1,000,000, across all Aviva applications, or the amount of life insurance you ve asked for on your application, whichever is lower. This means that where two people have applied for life insurance, each life insured is covered for the lower of 1,000,000 or the amount being applied for. n Your underwriting cover ends on the earliest of: 90 days from the date we received your application; or 10 days after we confirm our decision to accept you; or the day we postpone or decline your application. n Underwriting cover is intended to provide security and protection against the unexpected. This means it doesn t provide cover if your death results from a suicide or any medical condition that you had when you applied for your policy. n Your underwriting cover and policy will be invalid if you have not provided us with complete and accurate information on your application. It s also really important to keep us informed of any changes in your health or medical history prior to your application being accepted or Aviva providing you with our decision or starting cover. n Until we confirm you have Protection Promise (underwriting cover) it can be altered or withdrawn at any time. 04

5 Other benefits that can be included If we accept your policy on our standard terms, it will automatically include a range of other features. Life change benefit n If your circumstances change, our life change benefit lets you take out more cover without giving us any extra underwriting information. n You can increase your sum insured by up to 100%. The maximum additional amount you can take out is 200,000 or the original sum insured, whichever is lower. n You can use the life change benefit whenever your circumstances change before you reach age 55, or the additional cover you have reaches the maximum sum insured, outlined above. n You can use this benefit for the following life changes: Getting married or entering into a civil partnership Divorce, dissolution of civil partnership or separation Buying your first home Moving house Improving your home Buying a second home Having or adopting a child Your child/children starting higher education Salary increase of 20% or more. n The new policy we set up with the additional cover for life change benefit: Can be on a level or decreasing cover basis Can be on one or both lives, if the original policy was held jointly If the original policy was on a single life basis, this must be for the same life insured Does not have to be the same term as the original policy Must end before your 70th birthday Will be a life insurance policy Will include separation benefit, if held jointly with another person Can include waiver of premium, if included in your original policy Won t include the life change benefit or the replacement benefit Won t include indexation, even if this was on your original policy Can t be taken out if you re making a claim or are eligible to make a claim for waiver of premium, terminal illness benefit or death benefit. n If you want to use our life change benefit, you will need to do this within 90 days of your life change event and we ll need evidence of what s changed. For example, in the case of having a child, we ll need to see a birth certificate. n The new policy(s) will be subject to the premium rates in force at the time of the application for your age, and policy terms and conditions applicable when you take out the new policy(s). Replacement benefit n If you ve got a joint policy, the policy will end when one of you dies, or you claim for terminal illness and we pay out. However, by using the replacement benefit, the remaining policyholder can take out a new single policy without any further underwriting. n You can only use this benefit before you reach age 55 and within 90 days of the claim being accepted. n The new policy: Can cover you for your original sum insured or up to 50,000, whichever is lower Can be on a level or decreasing basis Can include waiver of premium, if included on your original policy Can t end later than the original policy, but can end earlier Won t include the life change, replacement or separation benefit Won t include indexation, even if this was on your original policy Can t be taken out if the remaining life insured is claiming or is eligible to claim for waiver of premium or terminal illness benefit. n The new policy will be subject to the premium rates in force at the time of the application for your age, and policy terms and conditions applicable when you take out the new policy. 05

6 Insurance Key Features Separation benefit n If you ve got a joint policy, you can use our separation benefit to divide it into two single policies if you separate. n For example, if you took out the joint policy to cover your mortgage, you can split it into two new policies to cover new mortgages. n You can only use this benefit before you reach age 55 and within 90 days of your separation. n The new policies: Can be on a level or decreasing cover basis Can include indexation, if included on your original policy Can include waiver of premium, if included on your original policy Can cover each of you for up to the same amount as the original policy Do not have to be the same term as the original policy Must end before your 70th birthday Won t include the life change benefit Can t be taken out if you re making a claim or are eligible to make a claim for waiver of premium, terminal illness benefit or death benefit. n If you want to use the separation benefit, you ll need to give us evidence of the separation and/or the changes to your mortgage. n The new policies will be subject to the premium rates in force at the time of the application for your age, and policy terms and conditions applicable when you take out the new policies. What options can I add to my policy? n We have two other options that you can choose to add on to your policy. Each additional option you choose will increase your total premium. Waiver of premium n If you choose waiver of premium, we ll pay your premiums if you can t work because you re ill or injured. This means you won t have to cancel your policy if you can t afford the premiums, so you ll still be covered. n If you have a joint policy, you can choose to add waiver of premium for one or both lives insured. n You can only choose waiver of premium if you re aged between 18 and 54 when you take out your policy. You can take waiver of premium off your policy at any time, but you can only choose it when you start your policy. n If you choose waiver of premium your policy has a maximum term of 50 years and has to end by the time you reach age 76. n When we assess a claim for waiver of premium, we look at whether you re unable to work based on your own occupation; this means your trade, profession or type of work you do for profit or pay. It is not a specific job with any particular employer, is irrespective of geographical location and the availability of work. We will look at whether you are unable to perform the duties of this occupation. n If you are unemployed or are a houseperson when you make a claim, we assess whether you re unable to perform certain work tasks, (e.g. walking, lifting or bending) or suffering from one of the serious conditions we cover. For more information please see your policy terms and conditions. n We ll start paying your premiums when you have been unable to work, or, if you re unemployed or a houseperson, you have been unable to perform two work tasks or suffered from the serious condition, for three consecutive months. This is known as the deferred period. n We ll finish paying a waiver of premium claim when one of the following happens: Your policy ends You are physically able to go back to your occupation or a different occupation You are able to perform the tasks again or recover from the serious condition We pay out a cash lump sum because you die, or you ve been diagnosed with a terminal illness. Indexation n If your policy gives you level or family decreasing cover, you can choose to automatically increase the cash lump sum we ll pay so that the amount you receive if a claim is made isn t reduced by the effects of inflation: n To be eligible for waiver of premium when you start the policy, you need to be in gainful employment. This means you re not a houseperson or unemployed. 06

7 n You can permanently take indexation off your policy at any time, but you can only choose it when you take out your policy. n If you choose the indexation option, the maximum amount of cover you can have when you start your policy is 2,500,000. This includes other Aviva Life Insurance policies with indexation. n Level cover: The cash lump sum we ll pay out will increase each year in line with the increases in the Retail Prices Index to a maximum of 10%. Your premium will increase based on a rate of 1.4 times the percentage increase in the Retail Prices Index. The premium will not increase by more than 14%. We ll write to you to let you know what your new premiums will be. If you re not happy with the increased premium, you don t have to take up the increased cover. Instead, you can choose to keep your cover, and your premiums, at the same level for that year. This means that you can take an annual indexation holiday and indexation will be reinstated in the next annual review letter that we issue. n Family decreasing cover: Although you have selected for your amount of cover to decrease over the term of your policy, by including the indexation option, you are able to reduce the effects of inflation on the cash lump sum that we will pay. This is possible because if you make a claim, the amount that you will receive will be increased in line with the rise in the Retail Prices Index from the start of the policy, to the policy anniversary before you made a claim. Your premiums will stay the same throughout your policy. Can I make changes to my policy? n Your policy offers some flexibility, so this means that you can change: how long you want your cover to last the amount, and type, of cover you ve got the options you want to include. When will the policy pay out? n If you die before the policy ends; or n If you ve got 12 months or more left on your policy and you re diagnosed with a terminal illness, with less than 12 months to live. We only pay out once, so if you make a claim for terminal illness or death, your policy will end. When will the policy not pay out? n We won t pay out if: You don t provide any documents or evidence to support your claim You haven t paid your premiums You gave us incorrect or incomplete information on your application, if this affects the cover we provide You die outside of the policy term. n We won t pay a terminal illness claim if: You re diagnosed with a terminal illness in the last 12 months of your policy and/or you re expected to live for more than a year. n We won t pay a waiver of premium claim if: We don t cover the reason why you re unable to work You don t meet our definition of incapacity You re unable to work because of alcohol or drug misuse, criminal acts or self-inflicted injury You re living outside the European Union, Andorra, The Channel Islands, The Faroe Islands, Gibraltar, The Isle of Man, Liechtenstein, Norway, Monaco, San Marino, Switzerland, Vatican City, USA, Canada, Australia or New Zealand, for more than 13 consecutive weeks in any 12 months. n Depending on the type of change you make, we may change or replace your original policy, or you may have to take out a new policy. We may also need you to give us some medical information. n You should review your cover to ensure that it remains adequate over time. 07

8 Insurance Key Features What will my premiums be? n Your illustration gives you an idea of how much you ll need to pay for the amount of life cover you ve chosen. This amount may change when we ve made our final decision on your application. n Your premiums are based on the cover you choose and your personal circumstances. n The options you choose will also affect how much you pay. n You pay your premiums monthly by Direct Debit. Guaranteed premiums n Your premiums are guaranteed to stay the same unless your policy gives you level cover and you choose indexation. In this case, your premiums may increase each year. We ll write to you to let you know what your new premiums will be. What about tax? n The cash lump sum we pay out on death or terminal illness is currently free from income and capital gains tax. n It may be subject to inheritance tax, unless you put your policy in trust. If you need more information on trusts, please ask your Santander adviser for further details. n Tax rules may change in the future. Can I change my mind? n You can change your mind within 30 days from the later of: The date you sign our declaration The day you receive your policy schedule. n If you decide you don t want the policy, we ll give you your money back, if you change your mind within 30 days. n You ll be sent a cancellation notice which will include a phone number that you can call and an address you can send it to if you change your mind about your policy. Alternatively, you can contact us at the Aviva address given overleaf. n Your policy will continue if we don t receive your cancellation notice within 30 days. n If you cancel your policy after 30 days you won t get any premiums back. Mortgage cover n If you re using your policy to cover your mortgage and you have taken decreasing cover, it will automatically include: Repayment guarantee n We guarantee that the cash lump sum we pay will pay off the outstanding mortgage amount covered by the policy when you die or make a claim on diagnosis of a terminal illness, if all of the following apply: The yearly mortgage interest rate at the time the policy is taken out is under 10%. The difference between the life cover amount and the outstanding mortgage is due solely to a higher rate of interest being charged on the mortgage than the interest rate used in our calculations. The amount of cover at the start of the policy is at least the size of the mortgage (or the part of the mortgage the policy covers). This policy does not end before your mortgage. This is called the repayment guarantee. Protection Promise (house purchase cover) n We ll automatically give you free life insurance cover between when you exchange contracts and when your house purchase is completed. (In Scotland we will provide the free cover from when missives are completed for the property until the date of entry.) n Your cover will begin once you ve been accepted and have given us a start date (the date of completion), provided that you have exchanged contracts. n On completion of the purchase, your house purchase cover will end and your policy should start (or in Scotland, the date of entry). n House purchase cover ends on the earlier of: 90 days from the date it started Completion The start date of the policy. n We ll cover you for up to 1,000,000, the amount of life insurance you ve asked for on your application or the purchase price of the house as confirmed when contracts are exchanged, whichever is lower. n Until we confirm you have Protection Promise (house purchase cover) it can be altered or withdrawn at any time. 08

9 How to contact us To speak to someone about your policy Your first point of contact will be your Santander adviser. However, if you want to get in touch with us you can call, or write: Monday to Friday 8.30am to 5.30pm Outside of these hours, you can use the same number and leave us a message. We monitor calls to improve our service. santander@aviva.co.uk Aviva PO Box 520 Norwich NR1 3WG To make a claim Call our Life Claims Department on: Alternatively, we can be contacted on: Outside of the UK, the number would be: To make a complaint If your complaint is about a claim, the service or administration of your policy, you can contact us at: santander@aviva.co.uk Aviva Customer Relations PO Box 3182 Norwich NR1 3XE If your complaint is about how your policy was sold, then contact Santander: Monday to Saturday 8am to 8pm and Sunday 8am to 6pm Or from outside the UK on: Text relay: Alternatively you can contact Santander online through the Complaints section of their website: or via secure messaging if you have online banking. Or write to Santander at: Complaints Santander UK plc PO Box 1125 Bradford BD1 9PG If you re not satisfied with the response from Santander or Aviva, you can write to: Financial Ombudsman Service South Quay Plaza 183 Marsh Wall London E14 9SR or complaint.info@financial-ombudsman.org.uk This won t affect your legal rights. 09

10 Insurance Key Features Other important information Terms and conditions This key features document only gives a summary of Aviva s Life Insurance. You should read the policy terms and conditions. You can get a copy from your adviser or we can send you one. Law We ll write your contract in English and the law of England will apply in any legal dispute. We ll always write and speak to you in English. Potential conflicts of interest There may be times when Aviva plc group companies or our appointed officers have some form of interest in the business being transacted. If this happens or we become aware that our interests, or those of our officers, conflict with your interests, we ll take all reasonable steps to manage that conflict of interest. We ll do this in a way that treats all customers fairly and in line with proper standards of business. Client classification The FSA has defined three categories of customer. You ve been treated as a retail client, which means that you ll get the highest level of protection provided by the FSA rules and guidance. Compensation Financial Services Compensation Scheme (FSCS) The policy is covered by the FSCS. You may be entitled to compensation from the scheme if Aviva becomes insolvent and we can t meet our obligations under this policy. The scheme may cover you for 90% of the total amount of your claim. This depends on the type of business and the circumstances of the claim. You can get more details directly from the FSCS online at or by contacting them at: Financial Services Compensation Scheme 10th Floor, Beaufort House 15 St Botolph Street London EC3A 7QU or

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12 Braille, large font, audio material You can order our literature in Braille, large font or audio. Just call or and tell us: n the format you want n your name and address n the name or code of the document. The code is usually at the bottom of the page on the back of most documents. The Customer Call Centre is open Monday to Friday 8.30am to 5.30pm, and Saturday from 8.30am to 2pm. RINS 0525 NOV 12 H / SD /2012 Santander Life Insurance, Life & Critical Illness Insurance, Income Protection Insurance and Over 50 s Life Assurance policies are sold by Santander UK plc and administered and underwritten by Aviva Life & Pensions UK Limited, 2 Rougier Street, York YO90 1UU. Registered in England No Aviva Life & Pensions UK Ltd is authorised and regulated by the Financial Services Authority. FSA Registration No Member of the Association of British Insurers. Santander UK plc. Registered Office: 2 Triton Square, Regent s Place, London NW1 3AN, United Kingdom. Registered Number Registered in England. Telephone Calls may be recorded or monitored. Authorised and regulated by the Financial Services Authority except in respect of its consumer credit products for which Santander UK plc is licensed and regulated by the Office of Fair Trading. FSA registration number Santander and the flame logo are registered trademarks.. This item can be recycled.