Income Protection Insurance - key features

Who needs unemployment and/or incapacity income protection insurance?

Simply consider the following information:

• Currently 90 families a day are having their homes repossessed. The majority due to the financial problems associated with unemployment.
  
• One in three people aged between 25-34 have experienced unemployment for a period in excess of one month.
  
• Almost one in five working age households (3.4 million) have someone who is currently unemployed.
  
• Today in Britain there are nearly 1,000,000 people who are registered as unemployed
  
• Every day 500 people in the UK become unemployed. 60% of unemployed men and 45% of unemployed women will be out of work for six months or more.
  
• Every adult in Britain is five times more likely to suffer a serious incapacity than die before the age of 60.
  
• Today in Britain, 2,900 people will start claiming state incapacity benefits
  
• 1,800,000 people in Britain are already incapacitated and have been unable to work for 12 months or more.
  

How will this insurance help you?

This insurance has been designed to overcome the consequences of unemployment or incapacity and to provide the following unique benefits:

• You do not need to have a mortgage to be insured under this insurance. However, being totally flexible it can cover a monthly mortgage payment, or rent, loans, household bills or any other purpose you require.
• Highly competitive premiums payable monthly by direct debit.
  
• Benefits are tax-free.
  
• Back-to-day-one benefits are payable for 12 months.
  
• Unemployment only cover, or incapacity only cover, or both combined.
  
• The self-employed, directors and proprietors of businesses are covered if their business ceases to trade and is formally wound-up by an independent third party.
  
• No premium loading on the basis of age or gender.
  

Who is eligible for cover under this insurance?

You can apply for this insurance if you:

• are aged between 18 and 64 and are permanently resident and working within the UK, Channel Islands or Isle of Man and eligible to receive Jobseeker’s Allowance,
  
• are actively working for more than 20 hours per week and have been in continuous employment for more than six months before the insurance start date. You cannot obtain this insurance if you work in temporary or seasonal employment,
  
• are in good health and know of no impending incapacity,
  
• are not aware that you could become unemployed.
  

When can you make a claim under this insurance?

You can make a claim under this insurance at any time during the period of insurance providing you notify us as soon as reasonably possible. However, there is a period of 120 days immediately following the insurance start date during which any occurrence or notification of impending unemployment will not be insured. This is known as the initial exclusion period and includes any period of consultation even though unemployment may not take place until after this period.

When do you receive your first benefit payment?

Subject to the provisions above, if you are working and become unemployed, or if you are unable to work due to incapacity (accident or sickness) for a period of 30 days we will pay you one monthly benefit. Thereafter payments will continue monthly in arrears until the earliest of the following events:

• the last consecutive day that you remain unemployed or incapacitated,
  
• the date you cease to provide evidence that you remain continuously unemployed or incapacitated. Evidence will be a completed claim form, Jobseeker’s Allowance and a job search diary with supporting evidence of you actively looking for work,
  
• the date on which you have received maximum benefit payments for any separate period of claim,
  
• the finishing date of this insurance.
  

How long are claim benefits paid for?

Claim benefits are payable for up to a maximum of 12 months for any separate unemployment or incapacity claim under this insurance. Once you return to work you need to stay in work for another 180 days before you can claim again.

What is the maximum cover you can have?

The amount of cover you select is known as the monthly benefit. The maximum monthly benefit available under this insurance is £1,000 or 50% of gross monthly income* whichever is the lower, less any other form of income but excluding State Benefits.

In addition, the maximum monthly benefit allowed under all similar insurances (including this insurance) is 50% of gross monthly income* less any other form of income including payment in lieu of notice and employers sick pay but excluding State Benefits.

All benefits over 50% of gross monthly income* will be deducted in the event of a claim.

Example: If your gross monthly income is £3,000, the maximum monthly benefit under this insurance is £1,000. The maximum monthly benefit from all insurance providers (including this insurance) is £1,500.

*Gross monthly income means monthly salary plus the average of any overtime, commission and/or bonus payments received in the 12 months prior to the insurance start date or the date of a claim if later.

Customer Care

Any enquiry or complaint you may have about this contract should be addressed in the first instance to the Administrator, Adminicle Limited, Callidus House, Love Lane, Cirencester GL7 1XD

Please be ready to quote your Certificate Number so that your enquiry or complaint may be dealt with promptly.

If you are still not satisfied with the way that your enquiry or complaint has been dealt with, you may contact the Underwriters to review your case without prejudice to your rights in Law, the address is:

Bankers Insurance Company Limited, The Operations Director, 117-119 Whitby Road, Slough, SL1 3DR.

If the matter remains unresolved and once the above have been contacted, then you can approach the Financial Ombudsman Service at South Quay Plaza, 183 Marsh Street, London E14 9SR. Phone 0845 080 1800.

Bankers Insurance Company Limited and Adminicle Limited are members of the General Insurance Standards Council and are regulated by the Financial Services Authority.

Rights of cancellation

You may cancel this insurance at any time. If you cancel within 14 days of the start date, you will be entitled to a full refund of any premiums paid, unless you have made a claim. Underwriters can cancel your cover by giving you 90 days written notice and will return any unused premium. This will not affect your ability to make a claim that occurs before the cancellation date.

Direct Debit Guarantee

This guarantee is offered by all banks and building societies that take part in the direct debit scheme. The efficiency and security of the scheme is monitored and protected by your own bank or building society.

If the amounts to be paid or the payment dates change, Adminicle Limited will notify you ten working days in advance of your account being debited or as otherwise agreed.

If an error is made by Key Adminicle re Adminicle Limited or your bank or building society, you are guaranteed a full and immediate refund from your branch of the amount paid.

You can cancel a direct debit at any time by writing to your bank or building society. Please also send a copy of your letter to us.

You should retain this guarantee for future reference.

What are the costs of cover?

The costs of cover are expressed as a rate per £100 of monthly benefit and include insurance premium tax.

Who provides this policy?

This insurance is administered by Adminicle Limited on behalf of Bankers Insurance Company Limited.

NEW Scheme for income protection insurance. Cover identical to the above. These rates must be applied for by contacting B. Portwood & Co Ltd on 01388 607105 and asking for the BIBA scheme policy.

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