A DETAILED LOOK AT OUR PROPOSITION Strategic Partner Proposition Guide Protection
CONTENTS Our product range 3 Personal and Business Menu plans 4 Cover options 4 Life Cover 5 Life or Critical Illness Cover 5 Critical Illness Cover 6 Critical Illnesses overview 6 Income Protection 7 Key Person Income Protection Business Menu Plan only 8 Waiver of Premium (sickness) 8 Unemployment Cover Personal Menu Plan only 9 Waiver of Premium (unemployment) Personal Menu Plan only 10 Relevant Life Plan 11 Relevant Life Plan product details 11 Helping Hand 12 Case management and underwriting our approach 13 Our new innovative online service 14 Appendix 1- Critical illnesses covered 15 Additional conditions 16 (This information is correct at the time of going to print October 2015) PLEASE NOTE THIS DOCUMENT IS CONFIDENTIAL AUTHORISED ONLY TO SPECIFIC NATIONAL PARTNERS AFTER SIGNING A NON-DISCLOSURE AGREEMENT 2
WE RE REBRANDING OUR PROTECTION BUSINESSES BRIGHT GREY AND SCOTTISH PROVIDENT TO ROYAL LONDON. We re building on the parts of our proposition that your members and their clients value most, so they can carry on recommending us with confidence. We ll continue to provide a comprehensive range of high quality products and make improvements before, during and after our rebrand. Our product range Personal Menu Plan Business Menu Plan Relevant Life Plan Life Cover Life Cover Life Cover only Critical Illness Cover Critical Illness Cover Life or Critical Illness Cover Life or Critical Illness Cover Income Protection Income Protection Unemployment Cover Key Person Income Protection Waiver of Premium (sickness) Waiver of Premium (sickness) Waiver of Premium (unemployment) 3
PRODUCT DETAILS PERSONAL AND BUSINESS MENU PLANS We ve designed our Personal and Business Menu plans to offer total flexibility. It enables your members to put together a protection plan that suits their clients needs and budgets. We ll continue to improve the benefits and options to provide better outcomes for clients, which will allow your members to keep recommending our products with confidence. We offer a range of cover types under our menu plans. The covers included are: Life Cover Life or Critical Illness Cover Critical Illness Cover Income Protection Key Person Income Protection Business Menu only Waiver of Premium (sickness) Unemployment Cover Personal Menu only Waiver of Premium (unemployment) Personal Menu only The menu plans allow your members to personalise their clients cover by selecting up to 10 covers in any combination to meet their needs. To ensure customers can adapt their protection to reflect changes in their lives, covers can be added, amended or removed at any time. Our minimum premium is 5 per month. Cover options The following options are available for Life Cover, Life or Critical Illness Cover and Critical Illness Cover: type Basis of cover Payment of cover Fixed or renewable (5 or 10 year) Single life or joint life (first event) Lump sum (level, increasing, decreasing). Personal Menu also offers an income option (level, increasing). This can be used for family income benefit. 4
Life Cover Our Life Cover pays out when the person covered dies or meets our definition of terminal illness. Maximum sum assured type Premium type Payment of cover Cover increase options (without medical evidence) Maximum attained age when cover starts 88 Maximum attained age when cover ends 89 unlimited 1-72 years fixed or 5 or 10 years renewable guaranteed lump sum or income on level, increasing or decreasing (not income) basis salary increase, marriage/civil partnership, increase in mortgage, birth or adoption of child, divorce Life or Critical Illness Cover Our Life or Critical Illness Cover pays out when the person covered dies, meets our definition of terminal illness, total permanent disability or one of the critical illnesses (or additional conditions) covered. Maximum sum assured type Premium type Payment of cover Cover increase options (without medical evidence) Premium reductions Maximum attained age when cover starts 69 Maximum attained age when cover ends 84 3,000,000 or 1,200,000 if increasing cover is chosen or family income benefit equivalent 1-50 years fixed or 5 or 10 years renewable guaranteed or reviewable lump sum or income on level, increasing or decreasing (not income) basis salary increase, marriage/civil partnership, divorce, increase in mortgage, birth or adoption of child for exclusions of cancer and multiple sclerosis 5
Critical Illness Cover Our Critical Illness Cover pays out when the person covered meets our definitions of one of the critical illnesses or additional conditions covered. Maximum sum assured type Premium type Payment of cover Premium reductions Cover increase options (without medical evidence) Maximum attained age when cover starts 69 Maximum attained age when cover ends 84 3,000,000 or 1,200,000 if increasing cover is chosen or family income benefit equivalent 5-50 years fixed or 5 or 10 years renewable guaranteed or reviewable lump sum or income on level, increasing or decreasing (not income) basis for exclusions of cancer and multiple sclerosis salary increase, marriage/civil partnership, divorce, increase in mortgage, birth or adoption of child Critical illnesses overview (please see appendix 1 for a full list of conditions covered) 54 critical illness definitions covered 44 conditions pay the full amount of cover 16 definitions ABI+ 10 additional conditions which pay 25% of the amount of cover, up to a maximum of 25,000. The client can claim more than once if they meet the definition of another additional condition in future And we ll also pay out the full amount of cover if a client is later diagnosed with one of the 44 main conditions Children s Critical Illness Cover 6
Income Protection Our Income Protection pays out a monthly income if the person covered is unable to work because of an illness or injury and meets our definition of incapacitated. Own occupation only definition Basis of cover Premium type type 5-53 years single life guaranteed Maximum sum insured 55% of gross salary up to the level of 250,000 each year Maximum attained age when cover starts 60 Maximum attained age when cover ends 70 Payment of cover Payment period Deferred period Claims guarantee Premium reductions fixed income on level or increasing basis 1 year, 2 years or whole term 4, 8, 13, 26, 52 weeks 1,500 a month for exclusions of mental health or back pain 7
Key Person Income Protection Business Menu Plan only Our Key Person Income Protection pays out a monthly income if the person covered is unable to work because of an illness or injury and meets our definition of incapacitated. Own occupation only definition Basis of cover Premium type type 5-20 years single life guaranteed Maximum sum insured 75% of gross attributable profit up to 250,000 each year Maximum attained age when cover starts 60 Maximum attained age when cover ends 70 Payment of cover Payment period Deferred period Claims guarantee Premium reductions fixed income on level or increasing basis 1, 2, 3, 4 or 5 years 4, 8, 13, 26, 52 weeks 1,500 a month for exclusions of mental health or back pain Waiver of Premium (sickness) We ll start paying the plan premiums if the person covered is unable to work because of an illness or injury and meets our definition of incapacitated. Waiver of Premium (sickness) is automatically included if the plan owner chooses Income Protection. 1-72 years Basis of cover single life or joint life Premium type guaranteed or reviewable Maximum attained age when cover starts 88 Maximum attained age when cover ends 89 Deferred period 4, 8, 13, 26, 52 weeks 8
Unemployment Cover Personal Menu Plan only Our Unemployment Cover is designed to protect against involuntary redundancy or unemployment or if a client has stopped work to become a full time carer for a close family member. We also provide an automatic referral of clients who have been made redundant to our Helping Hand service which provides support while looking for a new job. Maximum benefit limit Minimum benefit limit Basis of cover Premium type type Maximum attained age when cover starts 60 Maximum attained age when cover ends 65 Payment of cover No deferred period Payment period Carer cover This does not have to be linked to a mortgage 36,000 a year 1,200 a year 5-47 years single life reviewable fixed income on level or increasing basis cover starts on day of registering for Jobseekers Allowance or when pay in lieu of notice runs out 1 or 2 years included 9
Waiver of Premium (unemployment) - Personal Menu Plan only We ll start paying the plan premiums if the person covered is made redundant or on becoming a full time carer. Waiver of Premium (unemployment) is automatically included if the plan owner chooses Unemployment Cover. Basis of cover Maximum attained age when cover starts 60 Maximum attained age when cover ends 65 Payment period No deferred period 5-47 years single life until back at work and no longer eligible for Jobseekers Allowance or Carers Allowance cover starts on day of registering for Jobseekers or Carers Allowance when pay in lieu of notice runs out 10
RELEVANT LIFE PLAN Our Relevant Life Plan is a tax-efficient way of setting up life cover for businesses and can significantly reduce the cost of life cover for the business. Relevant Life Plan product details 1-57 years Basis of cover single life Premium type guaranteed type fixed or 5 or 10 years renewable Maximum sum insured unlimited Maximum attained age when cover starts 73 Maximum attained age when cover ends 74 Payment of cover lump sum on level, increasing or decreasing basis Cover increase options (without medical evidence) Minimum plan premium salary increase, marriage/civil partnership, divorce, increase in mortgage, birth or adoption of child 5 per month BUSINESS AND EMPLOYEE BENEFITS 1. The benefits won t form part of the employee s lifetime pension allowance and the payments made won t form part of the employee s annual allowance. 2. The payments employers make aren t subject to income tax because they re not normally assessable on the employee as a benefit in kind. 3. These payments can be treated as an allowable expense for the employer in calculating their tax liability, as long as the local inspector of taxes is satisfied they qualify under the wholly and exclusively rules. 4. In most cases the benefits are paid free of inheritance tax provided they re payable through a discretionary trust. 11
HELPING HAND We know your members and their clients value this service. That s why we ll continue to offer it when we rebrand to Royal London. Helping Hand is a package of services from third party suppliers including RedArc designed to give clients and their families the practical and emotional support they need at difficult times in their lives. There s no extra cost for any of it, it s available the day the plan starts and they don t need to make a claim to use it. A personal nurse adviser Specialist speech and language therapy Second medical opinion Tailored advice and support Cardiac rehabilitation support Reiki Physiotherapy Stress management advice Bereavement counselling Advice on health and wellbeing Someone to listen Help with diet and nutrition Oncology nursing support Complementary therapies WHY IT MATTERS TO CLIENTS: Reflexology Therapeutic massage Aromatherapy massage Independent helplines And much more... 90% of people said they would need practical and emotional support before a cheque. (Source: Bright Grey research, Opinion Matters, April 2014) 88% of people we referred in 2014 used Helping Hand. (Source: RedArc service analysis, 2015) For the third year running, 97% of Bright Grey plan holders rated RedArc s service as good or excellent. (Source: RedArc service analysis, 2015) 12
CASE MANAGEMENT AND UNDERWRITING OUR APPROACH We might be rebranding but we ll still be completely focused on providing excellent service to your members and their clients. We believe your members deserve personal attention, so we give them a personal case manager for each application. Their case manager will work with their named underwriter to make sure the application is processed as quickly and as smoothly as possible. We ll tailor our service to suit your members. Building relationships is key for our case managers. We tailor our service to suit what works best for your members. So if they only want us to contact them on Tuesdays and Thursdays then we ll do that. If they only want us to speak to them (and not their client), then we ll do that. If your members tell us how they want to do business with us, then that s what we ll do. For your members it means one person owns the application from beginning to end. We take the same approach to our underwriting as we do to case management. We ll assume members want updated at every stage but will vary our updates to suit their preferences. Our underwriters know the importance of making our service as slick as possible. So we give members direct phone numbers and email addresses of their case manager and underwriter, which means members can contact them directly with any questions. Our underwriters are flexible and if they need to know something medical, they can speak to the client or sometimes the doctor directly. Underwriting key points Decisions in principle Online application process Underwriting helpdesk GP incentive scheme Straight-through evidence requests Clear and simple underwriting guide We use cutting-edge technology to operate an innovative and intuitive quote and apply system backed by a sophisticated underwriting rules engine giving more immediate and quicker decisions. 13
OUR NEW INNOVATIVE ONLINE SERVICE When we rebrand to Royal London, we ll be launching a new innovative online service that will make the process of applying for protection business quicker and simpler. We re confident your members will love it. We re working with protection technology innovators UnderwriteMe to develop a market-leading service that makes it even easier for your members to do business with us. Key improvements Designed to work on all browsers on desktop, tablet and mobile devices Allows your members to pass control remotely to their clients to input personal details direct to us online, meaning they can avoid difficult or embarrassing conversations Full access to all our multi-benefit products personal, business and relevant life An improved dashboard so it s easier to see applications in progress at a glance Clearer signposting and easier navigation If we can t provide the cover asked for based on the information provided, it allows your members to change requirements in terms of cover types, sum assured, term etc. This enables your members to provide cover to more of their clients Gives more information on why decisions have been made More help text to make it easier to go through the quote and apply process More likely to get an instant decision online, rather than being referred to an underwriter If the case needs to go to underwriting, in some instances we ll give an indicative price range so it s easier to manage client expectations Pause and return to an application for up to 90 days 14
APPENDIX 1 CRITICAL ILLNESSES COVERED Alzheimer s disease resulting in permanent symptoms Aorta graft surgery for disease or traumatic injury Aplastic anaemia permanent Bacterial meningitis resulting in permanent symptoms Benign brain tumour resulting in permanent symptoms Blindness permanent and irreversible Cancer excluding less advanced cases Cardiac arrest with insertion of a defibrillator Cardiomyopathy of specified severity Chronic lung disease of specified severity Coma with associated permanent symptoms Coronary artery bypass grafts Creutzfeldt-Jakob disease (CJD) resulting in permanent symptoms Deafness permanent and irreversible Dementia resulting in permanent symptoms Encephalitis resulting in permanent symptoms Heart attack of specified severity Heart valve replacement or repair HIV infection caught from a blood transfusion, a physical assault or at work Intensive care requiring mechanical ventilation for 10 consecutive days Kidney failure requiring permanent dialysis Liver failure irreversible Loss of hand or foot permanent physical severance Loss of independent existence resulting in permanent symptoms Loss of speech permanent and irreversible Major organ transplant from another donor Motor neurone disease resulting in permanent symptoms Multiple sclerosis with past or present symptoms Multiple system atrophy resulting in permanent symptoms Neuromyelitis optica (Devic s disease) Open heart surgery with surgery to divide the breastbone Paralysis of limbs total and irreversible Parkinson s disease resulting in permanent symptoms Pneumonectomy removal of a complete lung Primary pulmonary hypertension of specified severity Progressive supranuclear palsy resulting in permanent symptoms Pulmonary artery graft surgery with surgery to divide the breastbone Spinal stroke of specified severity Stroke of specified severity Systemic lupus erythematosus with severe complications Third degree burns covering 20% of the body s surface area or 50% loss of surface area of the face Total permanent disability of specified severity Traumatic brain injury resulting in permanent symptoms inal illness is included when Life or Critical Illness Cover or Life Cover is taken out. 15
ADDITIONAL CONDITIONS These pay the lower of 25% of the main sum assured or 25,000. Accident hospitalisation requiring a hospital stay for 28 consecutive days Carcinoma in situ of the breast requiring surgery to remove the tumour Carcinoma in situ of the cervix uteri requiring trachelectomy (removal of the cervix) or hysterectomy Carcinoma in situ of the oesophagus with surgery to remove the tumour Carcinoma in situ of the testicle requiring orchidectomy Carcinoma in situ of the urinary bladder Low grade prostate cancer of specified severity Ovarian tumour of borderline malignancy/low malignant potential with surgical removal of an ovary Partial loss of sight permanent and irreversible Third degree burns covering at least 10% but less than 20% of the body s surface area or at least 25% but less than 50% of surface area of the face Royal London 1 Thistle Street, Edinburgh EH2 1DG royallondon.com All literature about products that carry the Royal London brand is available in large print format on request to the Marketing Department at Royal London, 1 Thistle Street, Edinburgh EH2 1DG. All of our printed products are produced on stock which is from FSC certified forests. The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London s customers to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in England and Wales number 4414137. Registered office: 55 Gracechurch Street, London, EC3V 0RL. October 2015 P9G0517