details of the skandia plan

Transcription

1 details of the skandia plan TERMS (ref P1) This brochure gives details about how the Skandia Plan works and its benefits and options. Please note, following our name change in 2014, Skandia became Old Mutual Wealth. All references in your terms and conditions to Skandia Life refer to products provided by Old Mutual Wealth Life Assurance Limited.

2 1. Definitions In these Terms, the following expressions shall have the following meanings: Fund means any one or more of the separate and identifiable accounts forming part of the Company s Long Term Business Fund which are maintained for the purposes of calculating benefits under the Skandia Plan and other policies and which are approved by HM Revenue & Customs as being compatible with a qualifying policy. Each Fund represents a group of investments held by the Company and is divided into Units representing shares in the investments of each Fund. Accumulator type Units are allocated to this Policy. The allocation of Units under this Policy is notional only and is solely for the purpose of calculating benefits under policies issued by the Company. The persons entitled to such benefits have no legal or beneficial interest in the Units. The Company shall deduct from each Fund such amounts determined by the Actuary to the Company in respect of: (i) the expenses of managing, maintaining and valuing the investments of the Fund (ii) any actual or prospective levy, tax or other charge on the investments or income of the Fund (iii) at each Valuation, a proportion of the Annual Management Charge, such charge to be calculated on the value of the Fund on the basis set out below under Offer Price. The Annual Management Charge shall be 0.75% each year of the value of the Fund. Valuation means the day on which Offer and Bid Prices are determined as detailed below. The Offer Price is used for calculating the number of Units allocated to the Policy. The maximum Offer Price of the Units of a Fund shall be determined by the Actuary to the Company by dividing the sum of: (i) the value of the investments of that Fund with reference to the amounts for which the investments might then be purchased (including an allowance for the cost of acquiring such investments); plus (ii) an allowance for income accrued but not yet added to the Fund; minus (iii) any liabilities in respect of the investments and an allowance for any actual, prospective or other liability which has not yet been paid by the number of Units of the Fund, multiplying the result by 100/95 and rounding-up by not more than 1%, such rounding-up to accrue to the Company. The Bid Price is the price at which a Unit is cancelled by the Company. The minimum Bid Price of the Units of a Fund shall be determined by the Actuary to the Company by dividing the sum of: (i) the value of the investments of that Fund with reference to the amounts for which the investments might then be sold (deducting an allowance for the cost of selling such investments); plus (ii) an allowance for income accrued but not yet added to the Fund; minus (iii) any liabilities in respect of the investments and an allowance for any actual, prospective or other liability which has not yet been paid by the number of Units of the Fund and rounding-down by not more than 1%, such rounding-down to accrue to the Company. Investment Addition means such amount determined by the Actuary having regard to, inter alia, the value of Units then allocated to the Policy. Identical Policies means all policies issued by the Company with eight leading digits identical to those shown in the Schedule and which are in full force and effect. Year means the period of 12 months measured from Commencement and any subsequent period of 12 months. Index of Retail Prices means the Index of Retail Prices published monthly by the Department of Employment or such other similar index as the Company shall decide. Life Assured means the person shown in the Schedule, and where two persons are shown in the Schedule, Life Assured means, in relation to the Policy: each of the Lives Assured for the purposes of Term 11(e). either of the Lives Assured for the purposes of Terms 11(b), 11(c), 12(b), 12(c) and 13. both of the Lives Assured for the purposes of Term 5(a), Table A of Term 8 and Term 15. the younger of the Lives Assured for the purposes of Term 14(c). (where the reference Joint Life-First Death basis is shown in the Schedule). the first to die of the Lives Assured for the purposes of Terms 2, 7, 8(a), 14(b) and 22 and the elder of the Lives Assured for the purposes of Terms 16 and 18. (where the reference Joint Life-Last Death basis is shown in the Schedule). the last to die of the Lives Assured for the purposes of Terms 2, 7, 8(a), 14(b) and 22 and the younger of the Lives Assured for the purposes of Terms 16 and 18. the Life Assured on whom the Company has admitted a claim for Waiver of Premium Benefit for the purposes of Term 11(d). Policyholder means the person or persons shown in the Schedule. The singular shall include the plural and the masculine shall include the feminine except where the context otherwise provides. 2 of 8

3 Premiums and Investment 2. PAYMENT OF PREMIUMS Premiums are payable as shown in the Schedule until the death of the Life Assured. 30 days of grace are allowed for the payment of premiums. if the premium under the Policy remains unpaid at the end of the days of grace, the Policy shall automatically be made paid-up under the provisions of Term 10, provided that the Policy has acquired a surrender value. If the Policy has not acquired a surrender value, it shall lapse without value. 3. ALLOCATION OF PREMIUMS at Commencement or at any time thereafter (provided a similar election is simultaneously exercised in respect of all Identical Policies) the Policyholder may elect that premiums paid from that date until a further such election is made shall be allocated to Units of one or more of the Funds in the proportions notified in the election. Units shall be allocated: (a) (b) 4. UNIT ALLOCATION (a) (b) 5. UNIT DEDUCTION/ADDITION on the Due Date where the premium is paid before, on, or within seven days after such due date; or where the premium is paid more than seven days after the Due Date, on the date of payment or such other date as the Company shall, in its absolute discretion, determine. Accumulator Units shall be allocated in the elected Funds. the number of Units allocated shall be determined by multiplying the premiums by the appropriate percentage. The appropriate percentage at Commencement shall be the Initial Allocation Percentage shown in the Schedule. The Company may, at its discretion, vary the appropriate percentage from time to time but at no time shall such percentage be less than 98%, or more than 103%. (a) (b) Each month, the Company shall reduce the number of Units. the reduction shall be determined by the Actuary to the Company and will reflect the charges of the Company in respect of setting up and maintaining the Policy and of maintaining the level of life cover provided. in determining the reduction to be made, the Company shall have regard to: Charges the amount of the premium, the frequency of payment, the age of the Life Assured and the table SP maintained by the Company for this purpose. Mortality the excess of the Sum Assured over the value of Units at the Bid Price; multiplied by the rate of mortality applicable to the Life Assured s then age according to such tables published by the Institute of Actuaries adjusted as the Actuary to the Company may at that time deem appropriate. Unit Addition each month the Company shall increase the number of Units by such number of Units obtained by dividing 1/12 of 0.75% each year of the value of the Funds by the bid price of Units in the elected Funds at the time of such increase. 6. CONVERSION OPTIONS Subject to the following conditions, the Policyholder may, at any time elect to convert Units of any Fund into Units of any other Fund at the Bid Prices. Conditions (i) a conversion fee of such amount as the Company shall stipulate from time to time shall be deducted from the value of Units to be cancelled before conversion. (ii) Conversion shall only take place provided a similar election is simultaneously exercised in respect of all Identical Policies. (iii) Conversion shall take place at the Valuation after receipt of an effective election at the Company s Head Office, but the Company reserves the right to defer a conversion for two weeks in which case conversion shall take place at the Valuation immediately following this period. (iv) These options are not available where the Policy has been made paid-up. BENEFITS 7. DEATH BENEFIT on the death of the Life Assured, all due premiums having been paid, the Company will pay the Sum Assured shown in the Schedule, plus (where applicable) the Investment Addition and/or the Death Benefit Addition. 3 of 8

4 8. ADDITIONAL DEATH BENEFIT (a) Benefit subject to all due premiums under the Policy having been paid, where a Relevant Event shown in Column 1 of Table A below has occurred on or after the last anniversary of Commencement and before the policy anniversary preceding the 45th birthday of the Life Assured, the Company will pay the Death Benefit Addition shown in Column 2 of Table A on the death of the Life Assuredprovided always that: (i) where the Relevant Event has previously occurred, the Death Benefit Addition shall be restricted to the amount of the Maximum Insurability Option shown in Column 3 of Table A for that event, less the total of the Sums Assured that the Company has previously provided, without medical evidence, as a result of all similar previous Relevant Events; (ii) where more than one policy issued by the Company is in force at the date of death of the Life Assured, the total of the Death Benefit Additions on such death shall not exceed the Death Benefit Addition payable under any single policy. The Death Benefit Addition so payable shall be apportioned over all the relevant policies proportionately by reference to the Sums Assured provided by such policies. table a COLUMN 1 Relevant The valid marriage of the Life Assured recognised by any law of the United Kingdom. COLUMN 2 Death Benefit Additional COLUMN 3 Maximum Insurability Option 30,000 30,000 The birth or legal adoption recognised by any law of the United Kingdom, of a child to or by the Life Assured. 15,000 60,000 The completion of a loan, secured on principal private residence of the Life Assured from a Qualifiying Lender as defined by IV of Schedule 7 to the Finance Act Any increase, since the last policy anniversary, in such a loan which is outstanding on the death of the Life Assured or, if less, 30, , SURRENDER the Policy may be surrendered in whole for a surrender value determined by the Actuary to the Company by reference to the value of Units at the Bid Price determined at the Valuation following receipt by the Company of a written request for surrender of the Policy. 10. PAID-UP POLICIES Provided the Policy has acquired a surrender value under Term 9, the Policy may be converted to a paid-up policy either at the election of the Policyholder or by the application of Term 2. On such conversion the Sum Assured shall remain in force and deductions shall continue to be made under Term 5. The Policy shall lapse and all benefits shall cease to apply when the surrender value of the Policy, determined in accordance with Term 9, falls to zero. OPTIONAL BENEFITS 11. WAIVER OF PREMIUM BENEFIT a) Availability this benefit only applies to the Policy if the reference SP1 Waiver of Premium Benefit is shown as a Special Provision in the Schedule. b) Benefit 4 of 8 Subject to the provisions of Terms 13 and 16, if the Life Assured shall be disabled (as defined below) for a continuous period exceeding six consecutive months, the Company will, on proof satisfactory to the Company of such disability and on proof of age, waive the subsequent payment of premiums as described below. c) Disability disability shall mean total incapacity by reason of accident or illness which, in the opinion of the Company, prevents the Life Assured from following his usual gainful occupation or any other occupation for which he is fitted by his knowledge or training and is not following any occupation for remuneration, profit or reward. d) Premiums Waived (i) No premium shall be waived which falls due before the expiry of six months from the date of the event giving rise to a claim ( the Deferred Period ). On admittance of a claim, all subsequent premiums falling due shall be waived until the happening of the earlier of the following events: (a) the anniversary of Commencement immediately following the 65th birthday of the Life Assured or, where the Life Assured is female, the 60th birthday of the Life Assured (b) the recovery of the Life Assured from being Disabled (as defined above) (c) the Surrender of the Policy under Term 9. (ii) Where the Policyholder has prior to admittance of Disability under (i) above, on each anniversary of Commencement effected policies under Term 15 and the premium to each of such policies is of such amount as the Company has prescribed for Inflation Increases in the table maintained for that purpose, the Company will, in consideration of such policies having been effected, waive premiums on any additional policy issued in exercise of the Option under Term 15 during the period of Disability on the same terms and conditions as shown in (i) above except that: (a) the Deferred Period for determining Premium Waived shall commence no later than the Deferred Period under this Policy and (b) no waiver will apply to any policy once the maximum amount of premiums which the Company shall waive under all policies has been exceeded. The Company shall determine such maximum from time to time. e) Cost of Cover the Initial Allocation Percentage shown in the Schedule reflects a reduction having been made of 2% to provide for the Disability of the Life Assured. The reduction shall not apply after the Benefit has ceased to be available in respect of the disability of the Life Assured under the Policy.

5 12. TOTAL DISABILITY BENEFIT a) Availability this benefit only applies to the Policy if the reference SP2 Total Disability Benefit is shown as a Special Provision in the Schedule. b) Benefit Subject to the provisions of Term 13, if the Life Assured shall be permanently disabled (as defined below) and prior to his or her 60th birthday the Company will, on proof satisfactory to the Company of such permanent disability and on proof of age, pay an amount equal to the Death Benefit under Term 7, any Death Benefit Addition under Term 8, and any Income Benefit under Term 14 on the date on which the Company admits permanent disability. for the purposes of determining the Benefit Term for the Income Benefit under Term 14, references to the death of the Life Assured shall be read as the admittance by the Company of a claim for Permanent Disability Benefit. On payment being made under this benefit the Policy shall automatically terminate and no other benefits will be payable thereunder. c) Permanent Disability Permanent disability shall mean permanent and total incapacity by reason of accident or bodily disorder which, in the opinion of the Company prevents the Life Assured from ever taking up any gainful occupation. Permanently disabled shall have a corresponding meaning. d) Period of Cover No permanent disability benefit shall become due before the expiry of six consecutive months from the date of the event giving rise to a claim. e) Cost of Cover the adjustment referred to under Term 5(a) Mortality shall be increased in accordance with the Table TDB1 maintained by the Company. 13. CONDITIONS APPLYING TO WAIVER OF PREMIUM AND TOTAL DISABILITY BENEFITS a) Exclusions No benefit shall be available under Terms 11 and 12 if the Policy has been made paid-up or in respect of any disability or permanent disability which, in the opinion of the Company, resulted directly or indirectly or was accelerated: (i) from self-inflicted injury, or the taking of alcohol or drugs (other than as prescribed by a qualified medical practitioner), or participation in any criminal act, or (ii) from war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power, riot or civil commotion, or (iii) from bodily injury sustained whilst engaged in steeplechasing, polo, racing by horse, motor sport, mountaineering, or pot-holing, or (iv) as a result of entering, servicing, operating, travelling in or ascending into or descending from any aircraft or aerial device except as a farepaying passenger on a licensed commercial airline flying on a regularly scheduled flight, or (v) pregnancy or childbirth. b) Change of Occupation should the Life Assured change his occupation from that mentioned in the proposal the Company reserves the right to cancel the benefits under Terms 11 and 12 should in its opinion the new occupation be of a more hazardous nature. Written notice of change of occupation must be given to the Company at its Head Office within 30 days of such change having occurred. The provisions of Terms 11 and 12 shall be voidable should the Company not be given notice of any such change of occupation, or if such notice is not given within the time shown above. c) Foreign Residence or Travel if the Life Assured travels to or resides in any country other than those shown below for more than three months in any period of 12 consecutive months the benefits under Terms 11 and 12 shall only remain in force subject to such conditions as the Company may impose, and shall in any event be cancelled upon the Life Assured taking up permanent residence outside the United Kingdom or the Republic of Ireland. the countries referred to above are Australia, Austria, Belgium, Canada, Channel Islands, Denmark, Finland, France, Great Britain, Gibraltar, the Isle of Man, Italy, Luxembourg, The Netherlands, New Zealand, Northern Ireland, Norway, Portugal, Republic of Ireland, Spain, Sweden, Switzerland, United States of America and West Germany. d) Notice of Claim Written notice of a claim must be given to the Company at its Head Office within three months of the event giving rise to a claim. if notice of a claim hereunder is not given within the time aforesaid the event giving rise to the claim shall be deemed to have arisen three months prior to the receipt of such notice. 14. INCOME BENEFIT a) Availability the benefit only applies to the Policy if the reference SP3 Income Benefit is shown as a Special Provision in the Schedule. b) Benefit In the event of the death of the Life Assured prior to his 65th birthday, the Company will pay, in addition to the Death Benefit and any Death Benefit Addition under Terms 7 and 8, the Income Benefit shown in the Schedule, by equal monthly instalments during the Benefit Term. c) Benefit Term The Benefit Term is the shorter of 20 years and 65 minus the age attained of the Life Assured at the anniversary immediately preceding the Admittance of Claim in respect of the Income Benefit. d) Cost of Cover in calculating the mortality charge under Term 5(a) the Sum Assured shall be increased by the present value of the Income Benefit as determined by the Actuary to the Company with reference, inter alia, to the current interest rates. 5 of 8

6 OPTIONS 15. APPLICATION FOR FURTHER POLICIES on application, by the Policyholder, to the Company at any anniversary of Commencement the Company will allow further policies to be effected on the Life Assured without evidence of health provided that the Sum Assured for each of such policies does not exceed the Company s Guaranteed Insurability Limits at that time and the premium to such policy is equal to or greater than the Company s minimum at that time. 16. ALTERATION OF SUM ASSURED at any anniversary of Commencement subject to Term 21, the Sum Assured under the Policy may be reduced to an amount not less than 75% of the premiums payable under the policy from that date to age 75 of the Life Assured, or increased, subject to such medical evidence and/or an adjustment to the premiums as the Company may require. 17. CHANGE OF LIFE ASSURED Provided a similar election is simultaneously exercised in respect of all Identical Policies on application to the Company by the Policyholder the Company will, subject to such medical evidence as the Company may require, allow the Policy to be cancelled and replaced by another qualifying policy for the same Sum Assured and the same premium but secured on the life of a person or persons as the Policyholder shall determine. GENERAL PROVISIONS 18. POLICY REVIEW if, in the opinion of the Actuary to the Company at any Review, the performance of Units to which the Policy is linked is insufficient to sustain the Sum Assured and other benefits the Company will reduce the Sum Assured and other benefits provided that the Sum Assured after the reduction shall not be less than 75% of the premiums payable under the policy from Commencement to age 75 of the Life Assured. 19. ELECTIONS elections made under the Policy shall not be effective until receipt at the Company s Head Office of such election in writing signed by the Policyholder together with the Policy, where required by the Company. 20. VARIATION (a) if at any time in the opinion of the Actuary to the Company the allocation to cover management expenses for any Fund represented by the Annual Management Charge for such Fund is insufficient or in the event of any change in legislation relating to taxation or otherwise or in the event of any other change affecting the contract, the Company may vary these Terms in such manner as the Actuary to the Company considers necessary in his absolute discretion including the variation without limit of the said Annual Management Charge. (b) The Company may similarly vary these Terms in respect of any levy imposed under the Policyholders Protection Act (c) Where in the opinion of the Company special circumstances prevail so that it is in the interest of Policyholders generally that any conversion or a surrender under the Policy should be deferred, the Company may defer such conversion or surrender in respect of Units of the Property Fund and/or Managed Fund for up to six months. (d) Clawback Where the Policy is surrendered or converted to paid-up, in whole or in part, the Company shall adjust the benefits provided by the Policy to reflect any sum which is payable by the Company to the Inland Revenue. 21. QUALIFICATION 22. SUICIDE the right of exercising any option is limited to that which would be compatible with the requirements of paragraph 3(3), Schedule 2, of the Finance Act 1975, for a qualifying policy. if the Life Assured commits suicide within two years from Commencement the Death Benefit under the Policy shall be limited to a refund of the premiums paid. 23. DOCUMENTATION No benefit shall be paid under the Policy until the Policy, together with such other documents as the Company may require, are produced at the Company s Head Office. 6 of 8

7 special provisions 24. The following Special Provisions only apply to the Policy if the Reference Heading to the appropriate Provision is shown in the Special Provisions section of the Schedule ( the Special Provisions section ). Where a Special Provision applies to the Policy the Terms and Conditions applying to the Policy shall be construed accordingly. For the purposes of these provisions: Relevant Life shall mean the Life Assured indicated in the Special Provision section of the Schedule. Reference Heading SP4 Inflated Income Benefit (Applicable only to Whole Life policies Reference P1) for the purpose of Term 14 the Income Benefit shall be revalued on each anniversary of the commencement of the Benefit Term in line with the published increase in the Index of Retail Prices over the previous 12 months. term 14(c) shall be construed as if the reference to Income Benefit was a reference to Inflated Income Benefit and in making the calculation therein required the Actuary to the Company may make such assumptions as to future increases in the Index of Retail Prices as he deems reasonable. Reference Heading SP5 Mortality Percentage the rate of mortality referred to in Term 5(a) - Mortality, in respect of the Relevant Life, shall be increased by the percentage, shown in the Special Provisions section. Reference Heading SP6 Occupational Loading Under Term 5(a) the Company shall increase the rate of deduction to reflect the loading shown in the Special Provisions section in respect of the Relevant Life. Reference Heading SP7 Joint Life Last Death Exceptional Mortality Risk the reference in Term 5(a) - Mortality, to Life Assured s then age shall be construed as if the Life Assured was the Relevant Life and not the Lives Assured as defined for the purposes of that Term. Reference Heading SP8 Sum Assured Debt The Sum Assured payable on death shall be subject to the debt shown in the Special Provisions section. Reference Heading SP9 Reducing Debt the Sum Assured shall be subject to a debt; at Commencement, the debt will be the amount shown in the Special Provisions section reducing on each subsequent anniversary of Commencement by the annual reduction shown therein until the debt is fully extinguished. Reference Heading SP10 Debt other than Accidental Death in the event of the death of the Relevant Life before the date shown in the Special Provisions section the Sum Assured payable on such death shall be subject to the debt shown therein unless the death occurs as a result of an accident ( Accidental Death ) as herein defined. Accidental Death means death resulting solely and directly from bodily injury caused by violent, accidental, external and visible means and occurring within three months of such bodily injury being sustained. The terms of this Special Provision may be reviewed and amended by the Company in the light of medical evidence received. Reference Heading SP11 Special Risks in the event of the death of the Relevant Life occurring directly or indirectly as a result of any of the clauses stated below and shown in the Special Provisions section, the Sum Assured payable on such death shall be subject to a deduction equal to the difference between the Sum Assured and premiums paid. Clause 1: entering, servicing, operating, travelling in or ascending into or descending from any aircraft or aerial device except as a fare-paying passenger on a licensed commercial airline flying on a regularly scheduled flight. Clause 2: Engaging in motor sport or time trials. Clause 3: Participating in aquatic diving. Clause 4: Handling, inspecting, repairing, testing, modifying or dispensing of any ammunition or explosive materials including guided missiles. Clause 5: War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military or usurped power, riot or civil commotion. Reference Heading SP12 Time Limit The Special Provision indicated shall only apply, during the period shown in the Special Provisions section following Commencement. Reference Heading SP13 Age Admitted The age of the Relevant Life is admitted. Reference Heading SP14 Trust this Policy is effected upon and is subject to the Trusts declared by the Trust Request Form indicated in the Special Provisions section and which is deemed to be incorporated herein. By the said Trust Request Form the Policyholder (which expression shall where there is more than one Policyholder mean all the Policyholders) was appointed Trustee of the monies payable hereunder. Reference Heading SP15 Non-Smoker for the purposes of Term 5(a), the Actuary to the Company shall have regard, in determining the adjustment therein mentioned, to the fact that the Relevant Life has completed, in the manner prescribed by the Company, the Non-Smoker Declaration. 7 of 8

8 Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual Wealth Life Assurance Limited is registered in England & Wales under number Registered Office at Old Mutual House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services register number VAT number SK0086/ /January of 8