Life Insurance Real Life Cover

A new way of protecting your family

Real Life cover is a totally new concept in life and ill health protection. Many experts believe that whilst life insurance is an essential product for most adults, there is an even greater risk of us being unable to work due to ill health or accident than there is of us dying prematurely. We bet you probably know more people who have been off work sick for 6 months or longer than you do who have died prematurely.

This is borne out by the fact that life insurance is cheaper than ill health insurance. However some consumers find the options available to protect against the financial impact of ill health somewhat bewildering and often outside their budget.

Real Life Cover bridges this gap by providing a number of essential covers in one plan. All Real Life Cover plans include the following covers:

• Death & Terminal Illness – pays a lump sum if you die or are diagnosed as terminally ill.
• Accident & Sickness – pays an income if you cannot work due to accident or illness.
• Cover against cancer, heart attack & stroke – pays a lump sum if you are diagnosed with one of these illnesses (of specified severity).
• Recuperation cover to help get you back into work – pays a lump sum to help you cover 'get back on your feet' costs.
• Child & Partner cover – pays you an income if you have to give up work to care for your partner or your child.

These covers are provided by each policy having two 'pots' of cash that can pay out.

When you first take out a Real Life Cover Plan you choose the level of cover you require (sum assured). This level of cover is provided through a Life Cover pot and then duplicated in a Living Cover pot.

So, if you choose a sum assured of £100,000 you will actually have the following 'pots':

• 'Life Cover' of £100,000 – this pot will pay out as a lump sum if you die or are diagnosed with a terminal illness during the term of your plan.
• 'Living Cover' of £100,000 – this pot is used to pay out the benefits for accident/sickness, critical illness, recuperation cover and partner & child cover.

At outset the Living Cover always matches the Life Cover. As benefits are paid from the Living Cover this pot will reduce by the amount of the payouts. As long as there remains a value in the Living Cover pot you can continue to make claims from this pot. Once the Living Cover pot is exhausted there can be no more claims from this pot. No mater how many claims you make on the Living Cover the amount of Life Cover will not be affected.

At the end of the term if you haven't made a claim there is no payout or maturity value. This is a pure protection contract only.

What will Real Life Cover pay out?

You should make sure that you read through the plan documentation carefully to ensure you fully understand how this plan works and what is covered as well as what is not covered. To read the Customer Brochure please click here.

Briefly the plan works like this:

• In the event of death or terminal illness the Life Cover pot will pay out in full and the plan will cease. This is no different from traditional term life assurance plans.
• In the event of accident or sickness preventing you from being able to work the plan will pay out 1% of the sum assured (up to a maximum of 50% of your pre-incapacity earnings) every month from the Living Cover pot. These monthly payments will continue until you either return to work or the Living Cover pot has run out.
• In the event of you being diagnosed with cancer (excluding less advanced cases) heart attack (of specified severity) or having had a stroke (resulting in permanent symptoms) the plan will pay out 12% of the Living Cover at the time of your diagnosis. You can claim this up to three times, once for each critical illness.
• If you are incapacitated by illness, injury or disability Recuperation Cover will pay up to 3% of the Living Cover towards the cost of treatment or services that could help your recuperation and eventual return to work. This could include physiotherapy, counselling or help travelling to work because you can no longer drive.
• If you have to leave work to provide full-time care for your child or partner Child & Partner Carer's Cover will pay out a lump sum of 12% of the Living Cover to help you cover the costs of leaving work.

Optional Extras

If you become unemployed or have to leave work to care for a parent or parent-in-law optional Unemployment & Extended Carers Cover will pay out 1% of the sum assured (up to a maximum of 50% of your pre-incapacity earnings) every month from the Living Cover pot. These monthly payments will continue until 12% of the sum assured has been paid out.

If you would like your level of cover to rise each year automatically you can choose Indexation at outset. This means your level of cover will rise each year by 5% of the original sum assured. Your premium will also rise every year.

To read the Customer Brochure click here.

For more information on this product contact us.