Each insurance provider will have their own terms and conditions. Platinum Financial Consulting deal with all the leading providers in the UK. If you ask us to place insurance on your behalf, we will make sure that we use the provider whose terms and conditions best meet your needs.
The information we provide below is therefore not necessarily the terms and conditions you will be offered. They are simply a generic outline of the conditions offered by most providers, and are provided as a guide to better aid your understanding.
Who can own the insurance policy ?
How long can the policy term last ?
When will the policy pay out ?
Are there any events when the policy would not pay out ?
How much will it cost ?
Are there any other benefits I can add to my policy ?
Can I increase the amount of benefit I receive from the policy ?
Who can own the insurance policy ?
Most people who own an insurance policy are also the individuals who are insured on the policy. However it is possible to own a policy on anybody in whom you have an "insurable interest". This means that if your life or finances would be directly affected should something major happen to somebody you are involved with, then you can take out a policy on them.
Obvious examples are:
- Husbands, wives and partners
- Business partners
- Parents
- Key employees
Policies can either be owned singularly or jointly.
[Return to menu]
How long can the policy term last ?
The term of a policy could be anything from 1 year up to about 40 years.
The maximum term offered by the insurer may reduce depending upon the age of the insured person. Most providers tend not to offer a term beyond the age of 80.
If you choose a term of 1-5 years, you may lose some benefits. The obvious example would be a life insurance policy where terminal illness benefit may be withdrawn. Terminal illness benefit would normally pay on the diagnosis of a terminal illness. However the policy would still pay on the death of the person insured.
[Return to menu]
When will the policy pay out ?
The policy will pay out if the insurable event occurs during the term of the policy. This means that if you insured yourself against critical illness and you suffered a heart attack during the term of the policy, then the policy would pay out.
The policy will normally cease at this point, once a claim has been made. This is typically the case even if you have several events insured in one policy, for example a husband and wife insuring each other against death or critical Illness.
It is possible however to buy a policy that would continue to offer insurance even if a claim against it has already been made.
Platinum are able to provide all types of policy; please talk to us if you are any way uncertain.
[Return to menu]
Are there any events when the policy would not pay out ?
Level term polices are relatively straightforward contracts. Therefore most of the things that could stop the policy paying out are in the hands of the applicant.
The policy would not pay out if:
- it was discovered you were not truthful with all the information you provided either at the time of application or claim;
- if you stop paying the premiums or your premiums are in arrears;
- if it was considered you were in anyway culpable for bringing on the insurable event.
Suicide may not be covered by many life insurance companies.
[Return to menu]
How much will it cost ?
Most insurance quotes are given based on standard rates. This means that the premium quoted will be based upon obvious factors such as your sex, age, occupation and whether you smoke or not. Because the quote is not based on any medical underwriting, it cannot be guaranteed.
On application, the insurance company will fully assess your application including any medical reports or tests as necessary.
Once the policy has been underwritten, the insurance company will issue formal terms to you, including the monthly premium. Whether the premium remains the same during the term of the policy will depend on whether you have selected a guaranteed or reviewable policy.
A guaranteed premium is exactly what you would expect, namely the premium will be the same throughout the life of the policy.
A reviewable policy will start out with an initial premium (normally cheaper than the guaranteed premium), but after a certain period the insurance company will review the policy. At this point they could adjust the premium you are required to pay.
If you want to protect the policy against the impacts of inflation, or have other reasons to gradually increase the value of the policy, you could choose to “index” the policy. This means that each year the benefit will increase in line with a known index such as the Retail Price Index (RPI) or an agreed percentage. With an indexed policy both the benefit and the premium will increase year on year.
There will be other charges for administration and running of the policy. These are included in the monthly premium. You will be able to see details of these charges in the illustration we provide to you.
The insurance company will also pay Platinum Financial Consulting a commission for introducing the business and providing you with advice. We are keen to stress that this does not make it more expensive for you to deal with us, in fact as recognised independent financial advisers some insurance providers give us preferential rates.
[Return to menu]
Are there any other benefits I can add to my policy ?
Most level term policies will allow you to add several benefits to your policy. Obvious examples are Life and Critical Illness insurance. There are however some additional benefits offered by some providers that may be of interest to you:
Waiver of Premium
This benefit will continue to pay the premiums on the policy should you be in a position where you are unable to work due to accident or sickness for a defined period (typically 6 months). The premiums will continue to be paid until you recover, or the policy term lapses, or you reach a specified age, typically 60.
Conversion Option
This will give you the possibility to convert the policy to a whole of life policy without further underwriting. This could be a benefit to as you get older and find premiums more affordable for the longer term, or as your needs change, or if you discover that you can no longer obtain term insurance and want to ensure you have some cover for life.
Platinum Financial are more than willing to help you select a policy and benefits that best meet your needs.
[Return to menu]
Can I increase the amount of benefit I receive from the policy ?
The sum assumed is set and underwritten at the outset of the policy. If you decide that you simply want to increase the level of cover for personal reasons, it may be difficult to do so using your existing policy without further underwriting.
Many insurance providers will allow you to increase the level of cover without further underwriting if certain events occur in your life. This is known as a “Guaranteed Increase / Insured Option”. The increase will be restricted to certain limits, but it will nevertheless give you the increased cover you require.
Typical events are :
Marriage
Becoming a parent or having another child
Moving home
[Return to menu]
These notes are intended as a guide only.
Upon application we will make sure we are aware of your requirements, and inform you of the terms and conditions of the selected provider, before the policy comes into force.
If you think these notes are incomplete or misleading in anyway, please contact us immediately.
