Q&A

• Do I need life cover?

  Life cover is designed to pay a lump sum in the event of your death. If you provide financial support to help another it is wise to consider how that person would support themselves without you.

• I don't work so do I need life cover?

  If you spend time caring for your children or other dependant, you're an invaluable resource that would be surely missed. Life cover could help provide care and protect your dependants financial future in the event of your death.

• What is the difference between Level and Decreasing Term Assurance?

  Both types of insurance require you to pay a fixed monthly or annual amount (called a premium) for the term of your plan. Both types of insurance pay a lump sum on your death during the plan's term. With Level Term Assurance, the amount of the lump sum is fixed in line with your interest only mortgage. With Decreasing Term Assurance, however, the amount of the lump sum reduces over the term of the plan, roughly in line with the reduction of your repayment mortgage.

  The graph below illustrates how the level of cover differs over time on whether you take level or decreasing term assurance:

  

• What amount of cover should I have and for how long?

  You may want cover that will simply pay off the mortgage, or you may decide your dependants will need some extra money on top. So depending on how much you think your dependants might need, you may want a higher amount of cover than just what's needed to repay your mortgage.

• What if I want a payment waiver option or critical illness option?

  If you want either of these benefits alongside your life cover, please speak to a Nationwide Consultant at your local branch.

• Can I change the amount of cover (Guaranteed Insurability Option)?

  Subject to certain conditions, you can increase the amount of cover on your plan without any further medical evidence. You will be entitled to this option:

  • if you get married or enter into a civil partnership
  • become a parent, through birth or adoption
  • move home or improve your home

  This is known as your Guaranteed Insurability Option.

• What is the minimum amount of time I can have life cover for?

  The minimum period for Level Term Assurance is one year and the minimum for Decreasing Term Assurance is five years.

• What is the maximum amount of time I can have life cover for?

  The maximum period depending on your age is 40 years.

• Could my monthly or annual payments change?

  The only time payments could change is if you change the amount of cover on the policy. Otherwise your payments will stay the same.

• What factors effect the monthly or annual payment?

  The amount, type and length of cover will all have a major effect on your payments. The answers to the questions in your application will also have an affect. These include: age, sex, occupation, health, height, weight, medical history and lifestyle.

• What's the difference between having a joint plan and two separate plans?

  A joint plan covers two named people at the same time but will only pay out on the death of the first person to die. If there are two separate plans, each will cover an individual on their own and will pay out only on that person's death. Both joint and single life plans will end either when a claim is made or the plan reaches the end of its term.

• What happens if I become terminally ill?

  If you are diagnosed with a terminal illness and given less than 12 months to live, the lump sum under the plan will be paid if you are eligible. The plan will then end, with nothing payable on death. A terminal illness is defined as an advanced or rapidly progressing illness, with life expectancy based on the opinion of Legal & General's Chief Medical Officer. However, Legal & General will not ask for the money back in the event of survival beyond 12 months. This cover does not apply if the plan term is less than 2 years or within the last 18 months of the plan's term.

• Can I cancel the plan?

  You can cancel your plan at any time. If you cancel within the first 30 days Legal & General will give back any premiums that you have already paid. If you cancel after this or your plan reaches the end of its term without a claim being made, nothing will ever be paid out.

• Will the contract be with Nationwide or Legal & General?

  Your contract will be with Legal & General. All claims, amendments or other communications should be with Legal & General.

• Why is Nationwide providing a Legal & General product? What is the benefit to me?

  Like Nationwide, Legal & General puts its customers' interests at the heart of its business. It is also responsible for investing more than £257 billion worldwide (as at 30 June 2007) and relied on by over 5.75 million people for their life, pensions, investments and general insurance plans, which means you can be safe in the knowledge that your finances are being well looked after. And now you can benefit from Legal & General's experience, market knowledge and great service - all available through your local Nationwide branch.

• What will happen to my personal information?

  The information you provide will be used by Nationwide and Legal & General to provide a quote, form part of the underwriting process, as part of statistical analysis or as part of the claim process. The details will be kept for the duration of a policy and a period after the policy has finished. Your data will not be passed on to any undeclared third party for any marketing purpose.