Business protection

Common questions

What additional benefits can be used to tailor a Business Protection policy?

Waiver of premium
This keeps the policy in force during a long-term disability without you having to pay further premiums (as long as the life assured meets the definition of incapacity).

Renewal option
If you have chosen life cover, critical illness protection or life with critical illness protection, this allows you to renew your benefit every five or ten years without medical evidence, instead of choosing a fixed term.

Indexation option
This increases your benefit yearly to guard against the effects of inflation. Your benefit and premium will increase each year in line with the increase in the Retail Prices Index (RPI).

Total and permanent disability benefit
This allows a benefit to be paid in cases of permanent disability. It can be added to any of the main benefits, except key person income protection or executive income protection.

You can choose between three definitions of disability:

• being unable to work at the normal occupation
• being unable to work at all
• being unable to carry out some of the activities of everyday life

Please note that the first definition is not available on all occupations. You can find further details on this in our Definitions Guide, which is available from your financial adviser.

Life buyback option
After we have paid a critical illness or permanent disability claim (please note this only applies to life cover with critical illness protection), your policy would normally have run its course. The life buyback option offers you the opportunity, within a year of us paying such a claim, to 'buy back' the same level of life cover as you had before.

Please note that if the critical illness in respect of which the claim was made falls within the definition of terminal illness, you can 't use this option.

Are there factors which will stop the policy paying out?

Yes. These are known as exclusions, and they include areas such as drug abuse, failure to follow medical advice and the results of war or revolution. The particular exclusions which apply to any policy are detailed in the policy documents, so you should read these carefully.

What is included in critical illness protection?

The policy covers a specified list of critical illnesses and conditions, including most cancers, dementias, heart diseases, organ failures, strokes, loss of limbs or faculties and degenerative nerve diseases. However, the list is necessarily complex and so you should read it with our Definitions Guide.

What is the 'survival period'?

This is the 14 days between the diagnosis of critical illness and the day benefit becomes payable.

What do I have to pay?

The premium payments. The times when these are due are set out in the policy documents. You can make payments monthly or yearly, but they must be made by direct debit.

Premiums can be either guaranteed (they stay constant throughout the period of payments), reviewable (they may be adjusted every five years) or they are reviewed every year. The type of premium you'll pay will depend on which benefits you choose when you set up the policy. For example, critical illness protection is not available on a guaranteed basis. You can find further details about the different types of premium in our key features document.

What other charges are there?

All of the administration costs are included in the premium. There are no other fees or charges to pay.

What if I stop paying premiums?

If you stop paying premiums, your protection stops and you'll no longer be covered for any benefits. We won't refund any premiums. If you subsequently want to restart your policy, there may be additional charges or conditions.

Are benefits taxable?

For both premium payments and benefits, this will depend on whether the individuals are insured on a key person basis, and whether or not the benefit is paid to the person covered by the policy, or to the company. You should get advice from a financial adviser.

Can I take out a policy then change my mind?

During the first 30 days of a policy, you have the right to cancel. If you do cancel the policy during this period, we'll refund all premiums paid.

How long will the cover last?

You can choose the length of cover for each benefit when you set up your policy.

What changes can be made once the policy is set up?

You can increase or reduce your level of benefit, or increase or reduce its term. You can add or remove both main and additional benefits, add or remove a life assured, and change the payment frequency and the deferred period.