Death Benefit Options
Options to help safeguard some of your client's original premium
A Care Funding Plan guarantees to pay an income for the rest of your client’s life, but this income will stop when they die, and no further benefits will normally be payable.
We understand that many people will be concerned that, should they die soon after taking out an Immediate or Deferred Care Plan, they won’t get value for money from their premium. We therefore offer a number of options to help your clients protect a proportion of that premium should the worst happen.
Is there a money back guarantee?
If your client dies during the first six months of the Plan Commencement Date, a lump sum will normally be payable to your client’s Estate/beneficiaries. The amount depends on how far into the six month period death occurs, and is expressed as a percentage of the amount invested, less any payments already made from the plan.
In order to give clients further reassurance during the coronavirus pandemic, we’ve temporarily increased our Money Back Guarantee for plans purchased since 14 May 2020 until further notice. This change provides a refund of 100% of the premium, less any income already paid, for any customer dying within 12 months of purchasing a plan where Covid-19* is recorded on the death certificate as a contributory cause of death.
Money Back Guarantee |
|
| Month of Death | Amount Returned |
| Month 1 | 100% of amount invested less the total amount paid from the plan |
| Months 2-3 | 50% of amount invested less the total amount paid from the plan |
| Months 4-6 | 25% of amount invested less the total amount paid from the plan |
| If death occurs within the first 12 months and Covid-19* is recorded on the death certificate as a contributory cause of death, the Month 1 Money Back Guarantee will apply. | |
If your client would like more comprehensive protection for their premium, they can choose the Capital Protection option, which is available under our Immediate Care Plan
Capital Protection
Capital Protection is a Decreasing Term Assurance plan, which pays out a lump sum on your client’s death within a given period of time.
The amount payable can be up to 75% of your client's initial premium (or any percentage up to this amount in whole percentages), but this will reduce over time in line with the benefits paid from an Immediate Care Plan.
Once the total amount of benefits paid under the Immediate Care Plan, equal the total amount protected (the Capital Protection Sum), no further lump sum will be payable.
Capital Protection is only available when purchasing an Immediate Care Plan – it cannot be purchased later, and is not available with the Deferred Care Plan.
*also includes Coronavirus or SARs-Cov-2 as a contributory cause of death.
