Income protection insurance and mortgage protection

1. Who is eligible for cover under income-protection-insurance.co.uk?

You can apply for this insurance if you:

(a) are aged over 18 but under 64 and are permanently resident within the UK, Channel Islands or Isle of Man,

(b) 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,

(c) are in good health and know of no impending unemployment or disability.

2. How long do you wait before receiving your first benefit payment?

Subject to the provisions of section 4, you will need to be continuously unemployed or disabled for a period of 30 consecutive days before you are able to claim benefit under this insurance. Thereafter payments will continue monthly in arrears until the earliest of the following events:

(a) the last consecutive day that you remain unemployed or disabled,

(a) the date you cease to provide evidence that you remain continuously unemployed or disabled,

(a) the date on which you have received maximum benefit payments for any separate period of claim,

(a) the finishing date of this insurance.

3. How long are benefits paid for in the event of a claim?

You can choose at the time of purchase to receive up to a maximum of either 12 or 24 monthly benefit payments for any separate unemployment or disability claim under income-protection-insurance.co.uk.

4. How much cover can you have?

The amount of cover you select is known as the monthly benefit. The maximum monthly benefit available per applicant under income-protection-insurance.co.uk is Ł2,500 or 50% of your gross monthly income* whichever is the lower.
* Gross monthly income means your monthly salary plus the average of any overtime, commission and/or bonus payments you have received in the 12 months prior to the insurance start date.

5. What are the costs of cover?

The costs of cover are expressed as a rate per Ł100 of monthly benefit and include insurance premium tax.

MONTHLY PREMIUM RATES
TYPE OF COVER	BENEFIT PERIOD	RATE PER Ł100 OF MONTHLY BENEFIT	EXAMPLE
Unemployment	12 months	Ł2.50	If you choose unemployment only cover with Ł400 of monthly benefit for 12 months. The premium is calculated as follows: Ł400 x Ł2.50 ÷ 100 = Ł10.00 per month If you choose unemployment and disability cover with Ł400 of monthly benefit for 24 months. The premium is calculated as follows: Ł400 x Ł5.00 ÷ 100 = Ł20.00 per month
Unemployment	24 months	Ł3.00
Disability	12 months	Ł2.50
Disability	24 months	Ł3.00
Unemployment and Disability	12 months	Ł4.50
Unemployment and Disability	24 months	Ł5.00

6. When can you make a claim under income-protection-insurance.co.uk?

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, unless you qualify for exclusion free transfer, there is a period of time 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 will depend on the monthly benefit you select as detailed below:

INITIAL EXCLUSION PERIOD
MONTHLY BENEFIT SELECTED	EXCLUSION PERIOD
Up to Ł500	60 days
Ł501-Ł1000	90 days
Ł1001-Ł2000	120 days
Over Ł2000	150 days

To qualify for exclusion free transfer you must transfer your existing monthly unemployment and disability insurance (or unemployment only insurance) from another insurer. Furthermore you must be able to prove that your existing insurance has been in force for at least six months and that you have not made a claim under that insurance.

Important note - once you have notified us we will send you a claim form which you must return to us as soon as possible including all the relevant information that we may require. This will include such items as medical information, sick-notes, wage slips, termination notice, P60, and if self-employed, independent proof of earnings, accounts, statements, Inland Revenue and National Insurance records. Failure to provide this information could seriously delay your benefit being paid or even result in non-payment of your claim.

If you restrict your insurance to unemployment only cover or disability only cover, monthly benefit will only be payable in respect of a claim arising from the specific type of cover you have selected.

7. What happens if you need to make more than one claim?

If you have already made a claim under income-protection-insurance.co.uk you can make a completely new claim once you have been back in work for a period of at least 90 consecutive days. Two unemployment claims separated by less than 90 consecutive days of work will be treated as the same claim, unless you have already received the maximum number of monthly benefit payments.

8. When will you be excluded from making a claim for unemployment?

No monthly benefit will be payable for unemployment if:

a) you have not been in continuous employment for at least six months,

b) you knew at the insurance start date that you would become unemployed or you had any reason to believe that you might become unemployed, or in our reasonable opinion you should have been aware,

c) your unemployment occurs within the initial exclusion period or you are told within the initial exclusion period that you will become unemployed even if your unemployment does not happen until after the initial exclusion period,

d) your employment is of a casual, temporary or seasonal nature (including casual, temporary or seasonal contracts) or unemployment is a regular feature of your particular occupation,

e) you accept voluntary unemployment, resign, retire or accept early retirement in lieu of unemployment,

f) your unemployment (i.e. dismissal) occurs as a result of your misconduct, breach of contract or criminal offence,

g) your fixed term contract ends,

h) unemployment occurs as a result of war, riot, radioactive contamination, nuclear accidents or similar risks,

i) your unemployment occurs while you are away from the European Union (EU) for a period intended by you to be more than 90 consecutive days. This clause will not apply if your reason for leaving the EU is because you:

1) work for the British Armed Forces, or
2) work as a civil servant in a British Embassy or Consulate

j) you are receiving payment in lieu of notice,

k) your unemployment is due to any of the disability exclusions.

9. When will you be excluded from making a claim for disability?

No monthly benefit will be payable for disability if:

a) you knew at the insurance start date that you would become disabled or you had any reason to believe that you might become disabled,

b) your disability is due to alcohol, solvent abuse or drugs (other than drugs taken under the direction of a doctor or consultant and not for the treatment of drug addiction),

c) you deliberately injure yourself or expose yourself to danger (except in an attempt to save human life),

d) your disability occurs as a result of a civil commotion, riot, terrorist activity, insurrection, war or any act incidental to war (whether declared or not),

e) your disability arises from stress, anxiety, depression or any mental or nervous disorder unless a consultant certifies that the condition solely prevents you from working,

f) your disability is due to a pre-existing medical condition*,

g) your disability is due to pregnancy or a normal pregnancy related condition (other than a medical complication which directly occurs as a result of your pregnancy),

h) your disability is due to a back related condition unless there is radiological evidence of medical abnormality, visible wound, contusion, or a consultant certifies that the condition solely prevents you from working,

i) your disability arises from any medical operation or treatment which is not medically necessary including any cosmetic or beauty treatment,

j) your disability is due to any of the unemployment exclusions.

* Pre-existing medical condition means any sickness, condition or injury for which you have received treatment, medication or advice (including regular or routine examination or consultations to monitor the condition) in the 12 months prior to the insurance start date.

10. What happens if you are offered temporary work?

If you are eligible to make a claim for unemployment under income-protection-insurance.co.uk and you are offered a temporary job you can suspend your claim provided that:

a) You tell us for whom you will be working (even if you are self-employed), how many hours you will be working and the duration of your temporary employment,

b) Your temporary job lasts for at least one week and no longer than six months and you do not have more that three separate jobs during any one period of claim,

c) you continue to comply with the terms and conditions of this insurance and tell us immediately if any of the above circumstances should change.

When your temporary job ends, and provided you are still eligible; your claim for unemployment will recommence subject to the payment of maximum benefits.

11. Are there any circumstances when your claim payments may be reduced?

We will deduct from your monthly benefit any amount from this or any other similar insurance that exceeds 75% of your normal gross monthly income.

12. Are you a shareholding director or proprietor?

If you are a shareholding director and you own more than 10% of the issued share capital of the business that you work in, or you are a proprietor who wholly or partially owns the business (other than as a shareholder) that you work in, you will only be insured if your business has ceased to trade.

Important Note: If you are a relative* of a shareholding director or proprietor who is working in the same business as you, you will only be insured if the business that you work in has ceased to trade.

* Relative means husband, wife, co-habitee, or any other immediate family member related to you by blood, marriage or law.

Full details of the circumstances when unemployment is deemed to have occurred are provided in section 13.

13. How will your employment status affect your cover?

The circumstances when unemployment is deemed to have occurred under income-protection-insurance.co.uk will vary in line with your employment status. Details of this are provided below:

i) Employed (excluding company directors/secretaries and/or their relatives or contract workers).
If you are working, you will be insured if you are made redundant.

ii) Employed company directors/secretaries and/or their relatives.

a) If you directly or indirectly own less than 10% of the issued share capital of the business you are working for, or you are a relative of a company director or company secretary who directly or indirectly own less than 10% of the issued share capital of the business you are working for, you will be insured if you become unemployed.

b) If you directly or indirectly own more than 10% of the issued share capital of the business you are working for or, you are a relative of a company director or company secretary who directly or indirectly owns more than 10% of the issued share capital of the business you are working for, you will be insured if that business ceases to trade.

iii) Employed contract workers.

a) If you have been working on a renewable fixed term contract with the same employer for more than two consecutive years, you will be insured if you are made redundant.

b) If you have been working on a renewable fixed term contract with the same employer for less than two consecutive years, you will be insured if you are made redundant during the term of your contract. You will not be insured against the non renewal of your contract and any entitlement to monthly benefit under this insurance will automatically cease on the date your contract was originally intended to terminate.

iv) Self employed and their relatives.

If you are the sole proprietor or a partner in the business you are working for or you are a relative of the sole proprietor or a partner in the business you are working for, you will be insured if that business ceases to trade.

14. How are premiums paid?

Any premium due under income-protection-insurance.co.uk is payable monthly in advance by Direct Debit. If you are claiming monthly benefit, you must continue to pay your premium as it falls due in order to ensure continuous cover under income-protection-insurance.co.uk.

The underwriters can amend your premium by giving you 30 days notice in writing.

If there are any changes to the current level of Insurance Premium Tax or any new taxation levies are imposed, your premium will be amended from the date any such taxation changes are implemented.

15. When does cover under income-protection-insurance.co.uk cease?

The cessation date of income-protection-insurance.co.uk is the day on which any of the following occur:

you die,
you retire from work or reach age 65, whichever is the earlier,
you cease to be resident in the United Kingdom, Channel Islands or Isle of Man,
you or the underwriters cancel income-protection-insurance.co.uk (as detailed in section 16),
you cease to pay your monthly premium.

16. Can you or the underwriters cancel income-protection-insurance.co.uk?

You can cancel this insurance at any time. If you cancel income-protection-insurance.co.uk within ten days of the insurance start date, you will be entitled to a full refund of any premiums you have paid, unless you have made a claim.

The underwriters can cancel your cover by giving you 30 days written notice. This will not affect your right to receive monthly benefit for any unemployment or disability which occurs prior to the cessation date.

17. What documentation do you receive?

This key features brochure is designed to provide you with a summary of the cover available under income-protection-insurance.co.uk. Once your application has been accepted, you will receive the following documentation:

A personalised certificate of insurance.
A copy of the insurance terms and conditions.

18. Complaints procedure

We always try to provide a first-class standard of service. However, if you have a complaint, you should contact the intermediary who arranged this insurance for you.

If they cannot sort the matter out, please write to the Managing Director of Compass Underwriting Limited at Asia House, 31/33 Lime Street, London EC3M 7HT.

If you are still not satisfied with the way a complaint has been dealt with, you may ask the Complaints and Advisory Department at Lloyd’s to review your case. This will not affect your right to take legal action. Their address is: Complaints and Advisory Department, Lloyd’s, One Lime Street, London EC3M 7HA.

19. What should you do if you require further information?

If you require any further information regarding income-protection-insurance.co.uk, or you would like a copy of the full insurance terms & conditions, you should contact:

Goodfellows® PO Box 6164 Braintree Essex CM7 8FF
Telephone - 01376 347369 Facsimile - 01376 347135
Email - enquiries@income-protection-insurance.co.uk

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