Skandia Life has re-entered the protection insurance market, having temporarily exited it in August 2010 after being a major player for 20+ years.
The new plan is a modified version of its old plan and offers life cover with critical illness cover. Terms of 5-40 years are available, along with a rolling 10-year term.
A total of 44 medical conditions are covered, five having the standard Association of British Insurers (ABI) definition and 18 having an ABI+ definition. Twenty one other conditions are also covered including serious accident, which pays after 28 days of hospitalisation following an accident.
In addition, there are 12 partial payments for less severe diagnoses of certain conditions. These pay the lower of £25,000 or 25% of the sum assured.
Children’s cover is the lower of 50% of the full sum insured or £25,000, and doubles if both parents have Skandia CI cover. There is a 10 day survivability clause and benefit is paid up to age 21 (regardless of whether the child is in full-time education).
The plan also includes surgery benefit, which pays up to half the sum assured, to fund certain fixed price operations; cover continuation benefit (after a claim on joint life plans); immediate cover for business assurance (and on accidental death during the application process for all), and guaranteed insurance options.
Guaranteed insurability applies on a mortgage increase; marriage/divorce/birth/adoption; a salary increase due to promotion/job change; business assurance revaluation, and loss of employer-provided group cover on retirement.
Premiums are guaranteed throughout the policy term and exclusion premium discounts apply for certain excluded conditions.
Optional benefits include premium protection benefit (PPB); total and permanent disability (TPD); cover reinstatement option (buyback), and inflation (RPI) linked annual cover increases, which can never be lost.
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