Summary of cover
Protect your income
This information is only a summary of the plan, for full information please speak to your local branch.
Level of benefit
You apply for the level of benefit you would want to receive each month, based on your current earnings. This can be up to 60% of your gross pre-incapacity earnings. There is, however, a maximum benefit payable of £36,000 per annum after taking account of any other income payable to you such as:
- disability benefits from any other insurance policies you have
- salary or wages
- pension scheme benefits (excluding the continuation of regular pension payments which were being paid prior to incapacity)
- continuing income from a business
State benefits for incapacity do not affect the amount of income protection benefit payable.
Choose when payments should start
You tell us how soon you would like payments to start if you became incapacitated and were to make a successful claim. For example, if you have a company sick pay scheme that pays for six months, you may want the plan to start paying out after the end of this period. But if you are self - employed, a regular income could be needed much sooner. To ensure payments start when you need, we offer eight different periods (called deferred periods) after which you will receive payment of income protection benefits on making a successful claim. These deferred periods are 4, 8, 13, 26, 52, 56, 104 and 112 weeks. Generally, the longer the deferred period, the lower the premium is likely to be.
Compensation for reduced earnings
If you make a successful claim then an Income Protection plan can also compensate you for reduced earnings if:
- you return to your job in a reduced capacity with a reduced salary, or
- you're unable to return to your previous job and take an alternative one at a reduced salary
Non-full time workers
The Income Protection plan can also provide benefits for housepersons, part-time workers (those working less than 16 hours per week) and the unemployed. If you fall into one of these categories and
- you become incapacitated, and therefore not undertaking any work and are consistently unable to perform at least 3 of the 'personal capabilities', or suffer one of the 'serious conditions' listed in the Key Features (available on request); and
- you make a successful claim
Norwich Union Healthcare Limited will pay up to a maximum benefit of £12,000 per annum.
Conditions which aren't covered
The plan will not provide cover for incapacity due to, or arising from:
- war and similar risks
- misuse of alcohol or drugs
- HIV/AIDS - unless you work in the medical profession and you have contracted the disease through your work; you have contracted this as a result of a physical assault; or as a result of blood transfusion
Monthly premiums
When your application is accepted and your plan has started your premium for the initial benefit you chose will increase automatically on each plan anniversary by the rise in the Retail Prices Index (RPI). Your benefit level will also increase annually at the same rate as your premium.
You have the option to decline any or all of the increases at each plan anniversary.
On the fifth anniversary of the commencement of your plan and every anniversary thereafter, Norwich Union Healthcare Limited may review the premium annually in line with their latest expectations of likely experience for plans of this type. This may or may not increase or reduce your premium. You will be given at least one month's notice of any change in premium. Premiums do not increase just because you get older.
You may need a medical
In all cases, Norwich Union Healthcare Limited will require a fully completed application form and your medical information, which will be collected by teleinterview. Depending on what is disclosed on the application form and in your teleinterview, and taking into account your age, your medical history and the amount of benefit you require, Norwich Union Healthcare Limited may also ask you to attend a medical examination, or ask your doctor for a report.