- Basis - single or joint life first event
- Premiums - guaranteed
- Payouts - lump sum or income (except for a plan with decreasing cover, where there's only a lump sum payment)
- Amount of cover - level, increasing or decreasing over the term of the plan
- Term - minimum one year, maximum 72 years
- Age when cover starts - minimum 18 attained, maximum 88 attained
- Age when cover ends - maximum 89 attained
- Amount - unlimited cover
To help protect against the effects of inflation,your clients can choose to increase the amount of cover over the term of their plan in one of two ways:
- Fixed rate – at a chosen rate of interest (between 2% and 5%)
- Index-linked rate – based on the change in the retail price index (between 2% and 10%)
Your clients can reduce the amount of cover over the term of their policy in two ways:
- Mortgage – Reduces in line with a repayment mortgage with a set interest rate (between 0% and 15%). If your clients mortgage interest rate changes, the amount we pay may not be enough to pay off their mortgage.
- Mortgage Repayment Guarantee – Pays a lump sum equal to the outstanding amount of your clients’ mortgage (less any arrears of capital or interest) providing the original cover amount and term was the same as the mortgage amount and term when your clients took out the cover. If they have made changes to their mortgage they must alter their cover to match the changes.
There's no need for your clients to present any medical evidence if they're getting married, increasing their mortgage or becoming a parent.
However, if they want to increase the amount of their cover for any other reason, they may need to supply medical evidence.