Personal Income Replacement Plan - Adviser Guide.

ADVISER HOTLINE: 0800 783 3282

Why choose the Personal Income Replacement Plan?

Provides a monthly benefit if illness or injury means your client cannot work and this causes a loss of income.
Supports a wide range of retirement ages from 50 to 70.
Provides a more affordable solution with limited benefit periods of two, three or five years.
Can also cover P11D benefits such as company car and living accommodation.
Guaranteed options to increase cover at key life stages or on every third policy anniversary.
Cover and benefits protected against inflation.
Extended cover options while your client is not working.
Option to purchase additional benefit in the event of a more serious disability.
Access to specialist medical advice and guidance around State benefits system.

About Unum

Unum is one of the UK’s leading providers of financial protection, with almost 40 years’ experience safeguarding individuals from the consequences of serious illness, injury or death.

At the end of 2009, Unum protected more than 1.6 million people in the UK and paid claims of £268 million - of which £200 million related to income protection benefits - providing security and peace of mind to individuals and their families.

In the UK, Unum has a financial strength rating of A- (Strong) from Standard and Poor’s and A- (Excellent) by AM Best.

Its US parent company, Unum Group, traces its history back to 1848 and is one of the leading providers of employee benefits products and services, and the largest provider of group and individual disability insurance in the United States. Premium income for Unum Group and its subsidiaries totalled $7.5 billion in the year ended 31 December 2009, with reported revenues for the group totalling $10.1 billion. Total assets were $54.5 billion at 31 December 2009.

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Plan Guide.

Product Description.

Provides a replacement income if your client can't work because of illness or injury and suffers a loss of earnings.

Min/Max Age.

18/64 age last birthday.

Min/Max Terms.

Minimum term is 5 years; policy termination can be between ages 50-70.

Max Benefit.

£250,000 per year.

Minimum Premium.

£5 per month; £60 per year.

Rate Options.

Reviewable: Yes / Guaranteed: Yes.

Replacement Ratio.

50% of pre incapacity earnings (no deduction of State Benefits).

Incapacity Definition.

Unable to perform the material and substantial duties of own occupation. Please note that occupation is not restricted to one place of work. For certain occupations, an alternative definition applies: unable to perform the material and substantial duties of your own occupation and any other occupation for which you are suited by reason of education, training or experience.

Deferred Periods.

4, 8, 13, 26, 52 weeks.

Indexation of Cover

RPI (max 12% each year).

Indexation in Payment.

Level, 5% or RPI (max 12% each year).

Product Features.

Cover While Not in Occupation: Cover reverts to definition based upon functional abilities tests for a period of up to 5 years. Premium reduced accordingly.

Career Break: Cover and premiums suspended for up to 12 months.

Waiver of Premium: Included.

Death Benefit: If death occurs during the first 12 months of continuous period of claim from the end of the deferred period and is as a result of the same illness or injury, lump sum payable of 12 times the last monthly benefit paid, less benefit already paid.

Guaranteed Insurability Option: Option to purchase more cover on every third policy anniversary or at key life stages without having to provide further medical evidence. The events are as follows:

mortgage increase associated with house moving or home improvements
marriage
childbirth or adoption
salary increase of at least 10% following a significant promotion or achievement of a professional qualification.

May increase benefit by up to £10,000 per year, but by no more than 50% of original benefit level. The option is available until age 55.

Shorter Benefit Periods: Reduce costs with limited benefit periods of 2, 3 or 5 years.

Product Options.

Disability Plus: Provides an additional income on severe incapacity. Benefit increases by 20% following 2 years continuous receipt of benefit and inability to perform certain activities of daily living.

Linked Claims.

If incapacity recurs from the same cause within 12 months of returning to work then the deferred period won't apply.

Disability Counselling and Rehabilitation Services.

Vocational Rehabilitation Consultants are health professionals with a wealth of knowledge and experience. They can provide support and assistance in rehabilitation and advice about benefit entitlement.

Claims Criteria.

Other cover taken into account in assessing maximum benefit at claim:

continuing payments from employment
pension payments - unless they would be received even if still working
other insurance benefits - if payable for more than 2 years and arise because of incapacity and covers regular payments such as a mortgage.

This does not include Critical Illness or other lump sum payments.

Medical Underwriting Limits.

We do not impose standard medical underwriting limits for automatically requesting a GP's report or for the client to undergo a medical examination.

Non-smoker Rates.

Must have not smoked cigarettes in the 12 months prior to effecting a policy.

Exclusions.

There are no standard exclusions.

Commission.

Option 1 : 130% of Lautro, 3.25% renewal
Option 2 : 21% level

For further information about the Unum Personal Income Replacement Plan, please request a copy of the Key Features Document by contacting our Adviser Hotline on 0800 783 3282.

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Unum Limited is authorised and regulated by the Financial Services Authority.

Registered in England 983768.

We monitor telephone conversations and e-mail communications from time to time for the purposes of training and in the interests of continually improving the quality of service we provide.

Registered office:
Milton Court, Dorking,
Surrey RH4 3LZ.
TEL: 01306 887766
FAX: 01306 881394
TXT TEL: 01306 887784

UP618 05/2010