DEFERRED CARE PLAN KEY FEATURES

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2 HELPING YOU DECIDE The Financial Conduct Authority is a financial services regulator. It requires us to give you this important information to help you to decide whether our Deferred Care 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. WHAT IS THE PURPOSE OF THIS DOCUMENT? This document is designed to give you a summary of information to help you decide if this product is suitable for you. Terms and Conditions for Partnership s Deferred Care Plan are available upon request. You should seek professional financial advice and discuss your plans with anyone who may be affected by your financial decisions, which may include your family. Before you make a purchase, you should read this and all other related documents and clarify any questions that you may have. RETAIL CLIENTS We categorise all clients to determine the level of protection they will receive. All clients in respect of Partnership s Care Plans are treated as retail clients. This gives the highest level of protection under the Financial Conduct Authority rules. If you are in any doubt about the suitability of this type of Care Plan clarify this with your financial adviser.

3 CONTENTS 04 IS OUR DEFERRED CARE PLAN RIGHT FOR YOU? 04 ITS AIMS 04 YOUR COMMITMENT 05 RISKS 06 QUESTIONS AND ANSWERS 09 APPLICATION PROCESS 09 OTHER IMPORTANT INFORMATION 11 GLOSSARY OF TERMS

4 IS OUR DEFERRED CARE PLAN RIGHT FOR YOU? This product is suitable if: You currently require Care on an indefinite basis or if you anticipate the need for such Care at the end of a specified period (called your Deferred Period); and You want the certainty of payments (called Benefit Payments) towards the cost of your Care for the remainder of your life once this Deferred Period ends. If you are already receiving Care, our Deferred Care Plan may be suitable if you have sufficient funds to cover the cost of your Care for the duration of your Deferred Period. Our Deferred Care Plan can only pay towards the Care costs of one person. ITS AIMS To help fund the cost of Care - including care at home, residential care and nursing care, when your Deferred Period ends To offer you the option to defer Benefit Payments for between 1 (one) and 5 (five) years To guarantee Benefit Payments to your Registered Care Provider for the remainder of your life, when your Deferred Period ends To allow you to select, at outset, the option for your Benefit Payments to increase (called Escalation) to keep pace with rising Care costs and inflation YOUR COMMITMENT To pay us a single amount to purchase your Deferred Care Plan (called your Premium) To choose the level of Benefit Payments you want us to make when your Deferred Period ends To choose whether you want your Benefit Payments to remain fixed or increase each year To provide us with your Registered Care Provider s details when your Deferred Period is drawing to a close (see Contact Details on page 10) To inform us of any changes in your circumstances between the date of your Application and the Commencement Date of your Deferred Care Plan (see Contact Details for General Inquiries on back page) To inform us of any changes in your details after your Deferred Care Plan has been set up (see Contact Details Section A on page 10) To ensure that your Legal Personal Representative is aware that they will need to notify us promptly when you die (see Contact Details on page 10) 04 DEFERRED CARE PLAN

5 RISKS Total Benefit Payments made by your Care Plan If you die within the first 6 (six) months of the Commencement Date of your Deferred Care Plan, we will issue a full or partial refund to your Estate depending on the month in which death occurs. However, if you die after the first 6 (six) months of your Deferred Care Plan s Commencement Date, there will be no return of premium to your Estate. Change in circumstances Your Deferred Care Plan cannot be cancelled if you are outside your 30 (thirty) day Cancellation Notice Period, which is 30 (thirty) days after you receive your Deferred Care Plan policy documentation and there is no cash surrender value after your cancellation notice period expires. If you are outside your Cancellation Notice Period and your Care funding needs change and you require a higher level of Benefit Payments or you require Care funding before your Deferred Period ends, you will have to fund your Care from other sources or you may apply for a new Immediate Care Plan which starts making Benefit Payments immediately. If you are outside your Cancellation Notice Period and no longer require Care or Care funding, your Deferred Care Plan cannot be cancelled but it will lose its tax-free payment status. Payments will be made to you net of tax as your Care Plan will be treated as a Purchased Life Annuity for tax purposes. Meeting the cost of your Care needs Benefit Payments are not guaranteed to cover the entire cost of your Care. If you choose not to have your Benefit Payments increase every year, you will be responsible for funding any increases in your Care costs that are in excess of your Benefit Payments. If the level of Escalation you choose is less than the increase in your Care costs, you will be responsible for funding the shortfall yourself. If the level of Escalation you choose is more than the increase in your Care costs, the excess will be paid directly to you and treated as a Purchased Life Annuity and taxed in accordance with HMRC rules. (Your financial adviser will explain this to you in detail). Taxation and Access to State Benefits Some State Benefits are means tested and the Benefit Payments from your Deferred Care Plan may affect your entitlement/ability to claim. (Your financial adviser will explain this to you in detail). Although Benefit Payments are not subject to taxation under current legislation, the rules governing taxation are subject to review and change in the future and depend on individual circumstances. (Your financial adviser will explain this to you in detail). If when your Deferred Period ends you are not in receipt of Care or you are not in receipt of Care from a Registered Care Provider, your Benefit Payments will lose the tax-free status and will be made net of tax as a Purchased Life Annuity. (Your financial adviser will explain this to you in detail). In the event that any payments are made to you after you die, these will be included in your Estate for Inheritance Tax purposes. (Your financial adviser will explain this to you in detail). DEFERRED CARE PLAN 05

6 QUESTIONS AND ANSWERS How does the Deferred Care Plan work? For a single lump sum payment (called your Premium), you purchase our Deferred Care Plan which, when your Deferred Period ends, secures a regular Benefit Payment to your Registered Care Provider for the remainder of your life, no matter how long you live. You must select your Deferred Period at the outset of purchasing your Deferred Care Plan. During your Deferred Period, you will need to meet the full cost of your own Care. However, once your Deferred Period comes to an end, Benefit Payments will be made directly to your Registered Care Provider and will be made gross of tax/tax-free. Your Deferred Period You may select between 1 (one) and 5 (five) years to defer your Benefit Payments. You will be responsible for covering all of your Care costs during your Deferred Period. Once selected and your Care Plan is in force, your Deferred Period cannot be changed (neither shortened nor lengthened). Your Deferred Period must be whole years, for example, 1, 2, 3, 4 or 5 years. Your Deferred Period begins on the Commencement Date of your Deferred Care Plan. For example, if we receive your Premium on 15th November 2017 (Commencement Date) and you select a Deferred Period of 2 (two) years, your Deferred Period will end on 14th November Benefit Payments on your Deferred Care Plan will commence on 15th November 2019 and will continue for the remainder of your life. Benefit Payments cease immediately upon your death. When will Benefit Payments start on my Deferred Care Plan? Benefit Payments to your Registered Care Provider will commence once your Deferred Period has ended. We will write to you three months before the end of your Deferred Period to confirm your Registered Care Provider details. You may choose for your Benefit Payments to be made every calendar month or every 4 (four) weeks (28 days). This must be selected at outset. How can I protect against the rising cost of Care? Your Benefit Payments will remain the same each year unless you choose for them to increase each year (this is called Escalation). You may choose to have your Benefit Payments increase each year from 1% to 8% in whole percentages (1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%). The Benefit Payments you have selected will increase during your Deferred Period even though Benefit Payments to your Registered Care Provider have not yet commenced. Therefore, when Benefit Payments to your Registered Care Provider start, they will be at the relevant escalated amount. Example: You choose to receive Benefit Payments of 24,000 per annum with Escalation of 5% and a Deferred Period of 2 (two) years In year 1 (one), your Benefit Payments remain at 24,000 In year 2 (two), on the anniversary of your Deferred Care Plan, your Benefit Payments rise by 5% per annum to 25,200 [ 24, ,200 (which is 5% of 24,000)] At the beginning of year 3 (three), which coincides with the end of your Deferred Period, your new annual Benefit Payments rise by a further 5% to 26,460 (calculated the same way as in year 2) Escalation must be selected at the outset of setting up your Deferred Care Plan and cannot be changed or removed once your Care Plan has been set up 06 DEFERRED CARE PLAN

7 What are the charges? All of our administration charges are factored into the cost of your Deferred Care Plan at the start and we will not make any additional charges. Adviser Charge If your financial adviser makes a charge for advice given (called Adviser Charge), we are able to facilitate this payment on your behalf. This will be added to your Premium. Alternatively, you may make this payment directly to your financial adviser. Details of any Adviser Charge to be made to your adviser or other intermediary will be shown on your Quotation. Can I make changes to my Deferred Care Plan after it has been set up? Once your Deferred Care Plan has been set up, it cannot be changed. If subsequent to setting up your Care Plan you require additional Benefit payments, you may purchase an additional Partnership Immediate Care Plan or an alternative income-generating financial product in the open market, to make up the shortfall in your Care fees. Such a Care Plan will require a new application and will be medically underwritten to ensure that the cost reflects your age and health conditions. Can I cancel my Deferred Care Plan? If you change your mind for whatever reason, you have the right to cancel your Deferred Care Plan within 30 days of receiving your Care Plan Policy Documentation. This is called your Cancellation Notice Period. If you choose to cancel your Deferred Care Plan, we will return 100% of your Premium less any Adviser Charge we may have facilitated on your behalf. Example: Premium 100,000 + Adviser Charge 5,000 = Total Purchase Price 105,000 We will return the Premium of 100,000 to you We can only return this amount to the original source from which it came. If we were paid by cheque from your own account, we will return the premium to that account. What happens to my Deferred Care Plan when I die? Your Deferred Care Plan ceases immediately upon your death and no further Benefit Payments will be made Your next of kin or legal personal representative must let us know immediately of your death either by telephone or in writing. (see Contact Details on page 10) If you die within the first 6 (six) months of the Commencement Date of your Deferred Care Plan, a percentage of your Premium will be returned to your Estate (see section on Money Back Guarantee) If you die after 6 (six) months of the Commencement Date of your Deferred Care Plan, there will be no payment to your Estate Any Benefit Payments made by us after your death as a result of us not being notified will be treated as an Overpayment. It is the responsibility of your Estate to repay any Overpayments to us and we will request any such payment from the Executor/Administrator of your Estate. Overpayments must be repaid in full DEFERRED CARE PLAN 07

8 Six Month Money Back Guarantee We offer a Money Back Guarantee as standard on all our Deferred Care Plans during the first 6 (six) months of their Commencement Date. This feature cannot be removed. However, there is no extra charge to you. If you die within the first 6 (six) months of the Commencement Date of your Deferred Care Plan, we will return a percentage of your Premium to your Estate as detailed in Table 1. Example: If your Premium costs 100,000 and you die within the first month, we will return 100% of the Premium to your Estate. Month 1 starts on the Commencement Date of your Immediate Care Plan. Therefore, if the Commencement Date is 25th of August, month 1 will start on 25th August and end at 23:59 hours on the 24th of September. Months 2 through 6 will be calculated in the same way. The amount that will be returned to your Estate will be 50% if you die within the second or third month of the Commencement Date of your Deferred Care Plan. As in the example above, month 2 starts on the 25th September and ends at 23:59 hours on the 24th of October. If death occurs between months 4 and 6 of the Commencement Date of your Deferred Care Plan, 25% of your Premium will be returned to your Estate. Can I protect my investment? Table 1: Money Back Guarantee MONTH MBG DUE % EXAMPLE 1 100% 100, % 50, % 50, % 25, % 25, % 25,000 There is no additional option to protect the Premium of your Deferred Care Plan after the first 6 (six) months of the Commencement Date of your Care Plan. 08 DEFERRED CARE PLAN

9 APPLICATION PROCESS Partnership s Deferred Care Plan can only be sold through an authorised financial adviser. You should seek financial advice if you are considering our Deferred Care Plan. 1. Application: Your financial adviser sends us a completed Application Form (a Power of Attorney may apply on your behalf) giving us details of your Care costs, the Deferred Period you wish to choose, Escalation, Adviser Charge and other details relating to your Care. 2. Medical Evidence/Underwriting: You give us permission to approach your GP and/or Care Provider for your medical records in order to medically underwrite your case: a. We write to your GP for a report which gives details about your health. b. We may also write to your care home manager for a report on your ability to perform your day-to-day activities. If you are not receiving Care, this report will not be applicable. 3. Quotation: We will issue you with a Quotation and offer you terms which we will send to your financial adviser. 4. Acceptance: Your financial adviser will discuss your Quotation with you and/or your Power of Attorney and if you think the Care Plan is right for you, you accept the Deferred Care Plan. 5. Completion: You send us the Premium and other documents to set up your Care Plan. 6. Deferred Care Plan Issue: We set up your Deferred Care Plan and send you Policy Documentation. 7. Deferred Period: During the Deferred Period, you are responsible for paying your own Care costs. 8. Active Benefit Payment Period: Upon completion of your Deferred Period, Benefit Payments to your Registered Care Provider will commence and continue for the remainder of your life. Any shortfall between the Benefit Payments made by your Deferred Care Plan and your Care fees will have to be paid by you. If your Care fees are less than your Benefit Payments the excess will be treated as a Purchased Life Annuity. 9. Policy End: Your Deferred Care Plan will come to a natural end upon your death. OTHER IMPORTANT INFORMATION Law This Care Plan will be governed by English law and is subject to the exclusive jurisdiction of the Courts of England and Wales. However, if you are a resident in Northern Ireland you can also bring proceedings in Northern Ireland, and if you are a resident in Scotland, you can also bring proceedings in Scotland. Your Policy Documentation will be written in English and we will always write and speak to you in English. Compensation The Financial Services Compensation Scheme will prevent a customer from losing money because the insurer is unable to pay them what they owe due to financial reasons. In this event, they will arrange to transfer your Care Plan to another insurer, provide a new plan or, if this is not possible, provide compensation. The scheme will ensure you will continue to receive 100% of your Benefit Payments. Further information about compensation arrangements is available from The Financial Services Compensation Scheme, who can be contacted at: Financial Services Compensation Scheme 10th Floor, Beaufort House, 15 St. Botolph Street, London EC3A 7QU DEFERRED CARE PLAN 09

10 Complaints If your complaint is in relation to the financial advice you received then you should contact your adviser in the first instance. If your complaint is in relation to any aspect of our products or services please contact: The Quality Assurance Team, Partnership, Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU Telephone: If you are not satisfied with the way your complaint is handled, you can contact: Financial Ombudsman Service Exchange Tower, London, E14 9SR Telephone: (for fixed line telephones) (for mobile telephones) Website: Making a complaint does not affect your right to take legal action. Full written details of our complaints procedure can be found at: wearejust.co.uk/your-money/protection-and-regulation/making-a-complaint/ To see our Solvency and Financial Condition Report, please visit justgroupplc.co.uk/investors/resultsand-presentations/regulatory-returns How to contact us For General Enquiries contact us: Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU Tel: (local call rates apply) ltc@wearejust.co.uk Web: wearejust.co.uk If you need to contact us AFTER your Deferred Care Plan has been set up to tell us about: Changes in your details, such as Care Provider or Power of Attorney details If you are hospitalised The Death of the policyholder Money Back Guarantee Overpayments/Underpayments Address: Partnership, Unit 11B, McMullen Road, Darlington, DL1 1AX Telephone: Please use your Deferred Care Plan Number starting with DA This document does not include all definitions, exclusions or terms and conditions and it should be read with your Illustration/Quotation and/or your Policy Documentation. Policy Documentation is available on request. All details are correct at the time of going to press (June 2017). 10 DEFERRED CARE PLAN

11 GLOSSARY OF TERMS Adviser Charge The amount you agree to pay your financial adviser for any advice given to you. Benefit Payments The amount that we will pay to your Registered Care Provider for the remainder of your life when your Deferred Period ends. If you choose Escalation, this amount will increase each year. Cancellation Notice Period You have 30 (thirty) days from the date you receive your Deferred Care Plan Policy Documentation to cancel your Care Plan. You must return a fully completed Cancellation Notice to us during this period. Care Normally referred to as Long Term Care, this is assistance provided to you on an ongoing basis for the remainder of your life because you are unable to take care of yourself and your conditions are not likely to improve. Commencement Date The date on which we receive your Premium. This is the date from which your cover will start. Deferred Period This is the period you select (from 1 (one) to 5 (five) years) in which you forgo any Benefit Payments. During this period, you are responsible for covering your own Care costs. Escalation The percentage by which your Benefit Payments will increase each year if you so choose. Gross of Tax/Tax Free The value of your Benefit Payments before any taxes due have been deducted. Money Back Guarantee We promise to return a proportion of your Premium to your Estate if you die within the first 6 (six) months of your Deferred Care Plan Commencement Date. Overpayment If we make Benefit Payment to your Registered Care Provider after you have died or changed Care providers because your Estate or you have not informed us, such a payment will be classed as an Overpayment and must be returned to us. Premium The cost of your Deferred Care Plan (this figure does not include your Adviser Charge). Purchased Life Annuity An annuity that is bought with an individual s own capital but is subject to tax. Registered Care Provider In order to qualify for tax-free Benefit Payments, you must be receiving Care from a Care provider which is registered with one of the following Care authorities in the UK: Care Quality Commission (CQC) in England Care and Social Services Inspectorate Wales (CSSIW) in Wales Scottish Commission for Regulation of Care in Scotland Regulation & Quality Improvement Authority (RQIA) in Northern Ireland DEFERRED CARE PLAN 11

12 Vale House, Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU * wearejust.co.uk *Telephone calls may be recorded for training and monitoring purposes. Local call rates apply. If you require this document in an alternative format please contact us. Partnership is a trading style of the Partnership group of Companies, which includes; Partnership Life Assurance Company Limited (registered in England and Wales No ). Partnership Life Assurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Part of Just Group plc. The registered office is 5th Floor, 110 Bishopsgate, London EC2N 4AY. LTC