This pack should contain everything
you need to know about the way
Scottish Provident and our products
can benefit both you and your clients.
Of course, if there is anything you
would still like to ask us, please feel
free to contact your Scottish Provident
sales consultant. You can find details
at the back of this pack.
Reasons why you and your clients
should choose Scottish Provident
Award winning Scottish Provident
All you need to know
Our financial strength
Scottish Provident was first established in 1837 and has grown to become one of the UK’s leading providers of protection cover, offering a wealth of experience and expertise.
Our parent, the Royal London Group, has been around since 1861. With around 3.6 million customers and employing 2,890 people,* it is the largest mutual life and pensions
company in the UK with funds of £39.1 billion under management.
Commission
Scottish Provident offers flexible and competitive commission rates and if you submit business online you will receive an additional 10% commission.
Treating customers fairly (TCF) – our promise to you
We strongly believe treating all our customers fairly is the only way to succeed in business. We aim to make all our communications easy to understand and keep our customers informed in an appropriate manner.
TCF is not a ‘bolt on’ solution, it has to be at the heart of the business where it can continue to develop. When we make any changes to our TCF approach, we will keep you up-to-date on these developments as and when they happen.
Flexible and innovative cover
Scottish Provident, the pioneer of the ‘menu of benefits’ approach to protection, provides true flexibility for your clients’ needs, both for today and in the future. Our Self Assurance and Pegasus plans are not just a ‘one size fits all’ solution. Your clients can choose from a range of options to suit their personal requirements whether it is straightforward life cover to critical illness or income protection, premium protection or unemployment cover – we have a plan to suit their needs. We know life does not stay the same. People get married or divorced, move to a bigger house, change mortgage provider, have children or get that well deserved promotion at work. So whatever changes happen in your client’s life, their plan can change with them.
Since 1996 Scottish Provident’s products have been consistently recognised through the receiving of awards from various industry bodies and associations.
We are proud of the 5 Star Ratings we achieved from Defaqto for the critical illness benefits in our Self Assurance plan. These achievements reflect the comprehensive quality of our products from a client’s perspective.
Source: Royal London Group (01 September 2010)
* Source: Royal London Group figures as at 30 June 2010.
Financial strength
Standard and poor’s ratings A- (counterparty credit rating) July 2010
Moody’s ratings A2 April 2009
AKG B+ (overall financial strength) September 2009
Going beyond the ABI standards
Scottish Provident was at the forefront of the protection industry in developing critical illness definitions which exceeded the cover provided under the ABI’s standard definitions. You and your clients will have the peace of mind knowing that we have gone above and beyond industry set standards, thereby increasing the probability that they will be covered if they ever need to claim. The seven definitions that go beyond the ABI standard are shown on the right:
Claims paid history -
a company you can trust
Here are some other useful statistics:
• 91.3% of claims in 2009 were successful
• Of the unpaid claims, 7% were not paid due to the illness not meeting our critical illness definition
• 1.7% of all claims not paid related to non-disclosure • 62% of all claims were related to cancer claims.
Source: Scottish Provident critical illness claims paid report (1 January to 31 December 2009).
We deliver on our promises.
We pay out! In 2009 we
paid out almost £94 million
in critical illness (CI) claims.
62
% Cancer12
% Heart Attack5
%6
% Stroke3
% Children’s Critical Illness12
% Other Multiple Sclerosis£
93,854,664
paid out in critical illness claims in 2009.
Please refer to either the Self Assurance product guide or the Pegasus critical illness definitions guide for a full list of our critical illness definitions.
Our ABI+ definitions How do we go beyond the standard?
Aorta graft surgery We cover surgery for traumatic injury to the aorta.
Benign brain tumour We have removed the requirement for “permanent neurological deficit with persisting clinical symptoms” if the tumour is surgically removed. Coma Our definition does not require the
claimant to be on a life support system. Coronary artery bypass grafts We have maintained our position of allowing
keyhole surgery for this definition. Heart attack We do not require evidence of typical
clinical symptoms (for example chest pain) to admit a heart attack claim.
Heart valve replacement or repair
We have maintained our position of allowing keyhole surgery for this definition.
HIV infection We have extended our definition to include other countries, so that the claimant is not restricted to becoming infected within the UK.
We have created four case studies to
illustrate how we can help your clients,
whatever their circumstances.
The single graduate
The young couple
Solution:
Income protection (disability income protection) from our Self Assurance protection menu could be ideal in this situation. This benefit could offer your client the reassurance of an income up to a maximum of 50% of his salary should he be ill and off work for a long period of time. He would need to know what his sick pay arrangements were with his new job, before he could arrange appropriate cover. With flexible premiums and terms, the benefit is highly adaptable should his circumstances change.
Additional benefits can also be added, should the need arise, including critical illness cover and life cover. This is something to bear in mind should he find himself in a long term relationship in the not so distant future.
You can find more details about our income protection plans in the product section of this pack, or simply speak to your Scottish Provident sales consultant.
Solution:
For them, flexible cover is paramount. We offer two market leading products covering life and critical illness cover that could help your clients. Self Assurance is term based cover and Pegasus is a unit linked whole of life based cover. Both are designed to deliver comprehensive, flexible cover.
The Self Assurance protection menu provides benefits that can be selected to suit each individual parent. If more than one benefit is added to the plan, such as life cover with income protection or critical illness cover, then it is more cost effective than buying them separately. Children’s critical illness cover is automatically included on critical illness benefits for added reassurance at no extra cost. They can also easily adapt the plan should their needs change.
You can find more details about our life and critical illness plans in the product section of this pack, or simply speak to your Scottish Provident sales consultant.
Michael has just graduated and has secured a job earning £26,750.
He is single, with a student loan to pay costing £82 a month and he is thinking of purchasing his first property. Protecting his income is his main priority.
Jacqui and Graeme are a young couple with one child and another one on the way. Their mortgage takes a large amount of their monthly income but they know they have to plan for the future for the benefit of their growing family and to protect their current quality of life. Presently, they have no life or critical illness cover in place.
The middle aged partnership
The retirees
Solution:
Unemployment benefit can be chosen from our Self Assurance protection menu. It is only available for mortgage plans and in conjunction with another benefit such as life cover, critical illness cover or income protection. As they do not have any income protection cover in place, they could take out some income protection along with unemployment benefit.
Unemployment benefit will give your clients the choice of a monthly income paid for one or two years with cover of 40% of salary, up to a maximum of £2,000 a month.
Additional advantages include access to JobCare which provides a CV writing service, career information library and access to a national job vacancy database to help get your client back into full time employment as soon as possible. Self Assurance has the added benefit of being adaptable to suit your client’s needs should their requirements change in the future.
You can find more details about our income protection and unemployment benefits in the product section of this pack, or simply speak to your Scottish Provident sales consultant.
Please note that unemployment benefit and JobCare are provided by separate companies from Scottish Provident. Please see the relevant literature for full details.
Solution:
We offer two market leading and award winning life and critical illness products that could help your clients:
Self Assurance, term based cover and Pegasus, a unit linked whole of life based cover that is not subject to a maximum expiry age. In this instance, Pegasus could be the ideal choice for your clients as they could put in place our Pegasus retirement cover option. This option allows full critical illness cover to be provided until retirement age (65) at which stage it will be replaced with retirement cover that covers those critical illnesses most likely to be relevant in older age such as: Alzheimer’s disease, dementia and Parkinson’s disease. A lump sum is payable upon diagnosis that could be used to help pay care bills or fund treatment.
Our Pegasus Wealth Preservation Plan could meet their additional need of providing financial help when they die. This plan can be set up on a ‘second event’ basis to provide a lump sum to pay any inheritance tax liability. The plan can be written in trust so the proceeds are paid directly to their family avoiding lengthy delays on a claim. You can find more details about our life and critical illness plans in the product section of this pack, or simply speak to your Scottish Provident sales consultant.
Gareth and Colin are a middle aged, same sex couple. They have lived together for two years and have two young children to support from previous relationships. Given the current economic climate they are most concerned about unemployment protection. They already have some life and critical illness cover in place.
Christine and John are a mature couple in their late 50s. Both are thinking about their retirement and plan to move to a property by the sea. With two children and three grandchildren, they are looking for a protection plan to help them financially should one of them develop a critical illness. They also require some provision for their family should inheritance tax become payable. All you need to know
We realise that it is important to
offer quality products that provide
flexibility but also realise that the
support both you and your clients
receive is equally important.
How we can support you
and your clients
How we can support you
Marketing
We want to keep you up to date with relevant, fresh and high quality marketing support. We provide you with:
• A full range of product literature • Sales tools to help promote
the need for protection • The Life Matrix, a handy tool
that you can use to help identify different client’s needs as well as help to target relevant customer groups more effectively.
Underwriting
From time to time you may need to speak to us prior to submitting a case. We have a dedicated helpline for you to use with immediate access to an underwriter.
Large case team
We want to give you the best possible service and as part of that commitment we are aware how important large case business can be. That is why we have a team who specifically deal with large case business. Our team will keep in touch to make sure you know what we are doing to get your client’s plans in force as quickly as we can.
Comprehensive trust service
We want to keep the concept of trusts as simple as possible so your clients can understand and appreciate the benefit of placing their protection plan in trust. By placing your client’s plan in trust, they:
• Allow their family to benefit from the plan proceeds instead of the taxman. This will ensure that any proceeds are held outside of the estate on death thereby avoiding the need to pay inheritance tax (IHT) • Have the flexibility to choose
whom they would like to benefit • Remain in control of their assets • Allow the proceeds to be paid
without delay.
We know that dealing with trusts can be complicated. Therefore, we have put a team in place who can give you all the help you need for general and product specific taxation advice. We will give you a dedicated contact to use regardless of whether you have submitted business or not.
Please note that the tax and trust support helpline is provided by a separate company from Scottish Provident.
Online support
Keep up to date by visiting the Scottish Provident website at
www.scottishprovident.com
for all the latest product information, news articles and press releases. You can also order Scottish Provident literature and sales materials.
Through our website you can access www.ifawebcentre.com
that offers additional help and support with the following: • Quote and apply with an
automated underwriting service • Quote and apply demos • Save and recall quotes
and applications • Policy tracking • Product literature and
information
• Sales support with suitability information and sales aids.
Dedicated business support
We offer you support on a specialist range of services and immediate access to a team of expert sales consultants and adviser development managers. They are on hand to support all your protection sales needs be it face to face, online or over the phone. Our specialist range of business support includes: • Training through seminars
and workshops
• Building your product expertise • Providing you with tangible
ideas to help you bring in new business. All you need to know
How we can support you
and your clients
JobCare
We offer JobCare for those plan holders who have claimed on their unemployment cover. This is a free,* confidential, telephone based service, designed to help your clients get back to work.
Key features of the JobCare support include a ‘back to work’ guide, information on employment options, access to a national job vacancy database and help in identifying opportunities for a career change. JobCare can also provide advice on writing CVs, attending interviews, help with letters of application and Department for Work and Pensions (DWP) procedures.
Lifeline
Lifeline is a confidential advice and support service free* for you, your clients and their families. It provides information and support on issues such as tax, law, health and employment.
For full terms and conditions please see our Self Assurance product guide and Pegasus technical reference guide. Exclusions and limitations may apply. Claims helpline
Our team of claims specialists are trained to guide your clients through what can be a difficult and traumatic time. They provide information and guidance throughout the claims process to reassure your clients. We make sure we pay as promptly as possible if the claim is accepted. We have developed a suite of handy guides to our claims processes. This will help you and your clients understand the information and evidence we need to gather in order for us to pay a claim.
There are two products under
the Scottish Provident brand:
• Pegasus
(unit linked, whole of life based cover)• Self Assurance
(term based cover).They are designed to offer both comprehensive and flexible cover that enables your clients to choose the most suitable benefits and options for them. The plans can be altered to meet your client’s changing needs.
We have included an ‘at a glance’ summary of the main features and benefits for each product.
Our products
* These phone based support packages are free (other than the cost of a local rate phone call). Please note that both Lifeline and JobCare are separate companies from Scottish Provident and all advice is therefore independent. We can withdraw these services or change the company providing the service at any time.
Pegasus (whole of life)
Guaranteed insurability options
We understand that over time your client’s protection needs can change, both at work and at home. Each of our Pegasus plans have built in flexibility to increase the amount covered to reflect the following changes in circumstances:
Personal Assurance Plan
Mortgage increase, marriage/civil partnership and family increase option, career progression.
Wealth Preservation Plan
In addition to the above options there is an inheritance tax (IHT) option which allows an increase in cover if the IHT rate changes.
Business Assurance Plan
Partnership or shareholder option, business development increase and key employee option. Guaranteed insurability options are allowed on all standard rated Pegasus cases up to a maximum £150,000 of additional cover or original sum assured. This must be taken up before the age of 55. They offer valuable cover as your clients will not have to provide further medical evidence and the additional cover will be provided on the terms and conditions of the original plan.
These features are the mark of a quality, comprehensive protection plan. Please be aware, if you do make changes to your client’s plan, their premium may go up or down depending on the changes made.
Split sums assured
For added flexibility Pegasus plans allow benefits to be split into separate plans, for example, separate life and critical illness cover. This comes with no additional effort from you or your clients other than ticking a box. This feature offers the following benefits:
• After a critical illness claim, life cover remains in force • Flexibility to have different
levels of life cover and critical illness cover
• One plan fee instead of two • Flexibility to place either or both
benefits under separate trusts.
Inheritance tax provision
Pegasus provides option for an IHT planning product called the Wealth Preservation Plan. Provided on a joint life second death or single life basis, the plan covers all IHT requirements and has added flexibility to adapt to the changing values of your client’s assets and to changes in legislation.
Career cover
Career cover allows your client to choose a specified period of time, where the premium on the plan is estimated to maintain cover for as long as they desire.
This type of cover is commonly used for business protection on a key person. It is also suitable to cover IHT liabilities, for instance to age 85, where your client may need some time to make arrangements to gift their assets as they no longer require cover.
Retirement cover
On retirement, the needs and lifestyle of your clients obviously change. We offer a retirement option on Pegasus that can be accessed on or around age 65. This will take into account the change in your client’s circumstances and the financial implications of them suffering a critical illness.
Retirement option covers the illnesses and disabilities most likely to affect your clients in their later years such as: Alzheimer’s disease, blindness, deafness, dementia, loss of independent existence and Parkinson’s disease.
Please note we do not cover all critical illnesses and exclusions and limitations may apply. We do not cover all forms of cancer. Full details, including terms and conditions and exclusions and limitations, can be found in our product literature. Self Assurance plans have no cash-in value at any time. Pegasus plans may have a cash-in value, which may fall as well as rise and is not guaranteed. Please note that if your client’s stop paying their premiums they will no longer be covered for their benefits, the plan will end and they will not get anything back.
Self Assurance (term)
Increase options
Needs at home and work change and in recognition of this fact we provide increase options for Self Assurance to change with your client’s protection needs. Whether it is by getting married, having a family, moving house or making home improvements the Self Assurance plan allows your client’s cover to be increased to meet their changing circumstances. Changes also happen in the business world, so our increase options for business cover are specifically tailored to cover changes such as increases in business loans or shareholding and increases to share value or the value of an important employee. All of our options can be accessed without providing further medical information and the increased benefits all follow the original terms and conditions of your client’s plan.
Extra benefits
We provide extra cover for clients with multiple benefits in their plans. We provide not one, but two additional benefits if disability income benefit (income protection) and critical illness benefit have both been chosen. The additional benefits are children’s income benefit, and immediate cash benefit (subject to terms and conditions).
Income option
Self Assurance offers a cost effective alternative to lump sum benefits. The income option offers cover at a lower cost than the lump sum option, suitable for those budget conscious clients. It is ideal for meeting client’s needs to maintain regular income throughout the term of their plan, for example, maintenance payments for children, education fees or income replacement. We include an option to convert the income payments at claim into an equivalent lump sum payment should your client’s needs change.
Self Assurance and Pegasus
ABI+
We offer a comprehensive set of critical illness conditions. These conditions provide your clients with one of the widest breadth of cover in the market, with seven of the definitions exceeding the ABI standard definitions.
Children’s critical illness cover
We provide children’s critical illness cover at no extra cost as we understand that critical illnesses can happen at any age, even in childhood. We cover 34 children’s critical illness conditions.
We pay a lump sum of 50% of the main critical illness benefit, up to £20,000 for each child. If both parents have separate critical illness cover, a claim can be made under each cover which provides a maximum lump sum of £40,000.
Critical illness buyback
By selecting cover buyback at outset, your clients can take out additional critical illness cover. This will provide them with valuable extra cover following a successful claim. The buyback benefit is up to a maximum of £100,000 and covers the top three causes of critical illness claims; cancer, heart attack and stroke.
We are one of the few providers who offer this valuable product feature. The cost of the benefit, which must be chosen at the outset is included in your client’s premium.
If a claim is made premiums for the critical illness cover will stop and your clients will only be asked to pay a premium of £25 each year when the buyback benefit has started. Children’s critical illness cover will continue throughout at no extra cost. All you need to know
Plan type Death Critical illness Death or earlier critical illness Disability income benefit (income protection) Unemployment benefit
Available on
Personal Term Plan ✚ ✚ ✚ ✚
Mortgage Term Plan ✚ ✚ ✚ ✚ ◆
Business Term Plan ✚ ✚ ✚ ✚
Who is covered? Single life ✚ ✚ ✚ ✚ ◆
Joint life (first event) ✚ ✚ ✚ ✚ ◆
Type of benefit
Level ✚ ✚ ✚ ✚ ◆
Decreasing (0% - 18%) ✚ ✚ ✚
Increasing ✚ ✚ ✚ ✚ ◆
Benefit payable as Lump sum ✚ ✚ ✚
Income ✚ ✚ ✚ ✚ ◆
Available as Standalone benefit ✚ ✚ ✚ ✚
◆
Only available with another benefit
Type of premium Guaranteed ✚ ✚ ✚ ✚
Reviewable ✚ ✚ ✚ ✚ ◆
Type of benefit term Fixed (5 - 40 years) ✚ ✚ ✚ ✚ ◆
Renewable (5 / 10 years) ✚ ✚ ✚ ✚
Product features Death Critical illness Death or earlier critical illness Disability income benefit (income protection) Unemployment benefit
Additional benefits
Children’s benefit ✚ ✚
✚Children’s income benefit and immediate
cash benefit included automatically at no extra cost when CI benefit is also selected. Premium payment benefit
(waiver of premium) ● ● ● ✚ ◆
Terminal illness cover ✚ ✚ ✚
Free cover ✚ ✚ ✚
Definition for TPD or incapacity
Own occupation ✚ ✚ ✚
Work tasks ✚ ✚ ✚
Buyback Available at outset ● ●
Helplines Lifeline ✚ ✚ ✚ ✚
JobCare ◆
Increase options
Childbirth / adoption ■◆ ■◆ ■◆ ■◆ ■◆
Marriage / civil partnership ■◆ ■◆ ■◆ ■◆ ■◆
Salary increase ■◆ ■◆ ■◆ ■◆ ■◆
Business loan ▲ ▲ ▲ ▲ ▲
Increase in value of an
important employee ▲ ▲ ▲ ▲ ▲
Increase in shareholding ▲ ▲ ▲ ▲ ▲
Increase in share value ▲ ▲ ▲ ▲ ▲
Minimum / maximum details
Maximum benefit
(Lump sum / non indexation) ✚£10m
■£2m ◆£2m ▲£3m ■£2m ◆£2m ▲£3m ✚£126,000 a year ◆£24,000 a year
Max age at entry / expiry ✚79 / 85 ✚69 / 85 ✚69 / 85 ✚59 / 65 ◆59 / 65
Min premium (each plan) ✚£5 ✚£5 ✚£5 ✚£5 ◆Min benefit
of £100 a month
Plan type Death Critical illness IHT
Available on
Safeguard cover ✚
Ultimate cover ● ✚
Wealth Preservation Plan ◆
Who is covered?
Single life ✚ ✚ ◆
Joint life (first event) ✚ ✚
Joint life (second event) ◆
Benefit payable as Lump sum ✚ ✚ ◆
Annual instalment option ● ●
Premium basis Standard ✚ ✚ ◆ Maximum ✚ ✚ ◆ Specified ✚ ✚ ◆ Career ✚ ✚ ◆ Retirement ✚
Type of premium Reviewable ✚ ✚ ◆
Product features Death Critical illness IHT
Additional benefits
Life cover
Terminal illness cover ✚ ✚
Children’s critical illness benefit ✚
Premium protection
(waiver of premium) ● ● ●
Retirement cover ✚
Split sums assured ✚ ✚
Free cover ✚ ✚ ◆
Definition for TPD Own occupation ✚
Work tasks ✚
WOP definition of disability Own occupation ● ● ●
Work tasks ● ● ●
Buyback Available at outset ●
Replacement cover On joint life plans ✚ ✚
Indexation Indexation option ● ● ●
Estate value increase option ●
Guaranteed insurability options
Mortgage increase ■ ■ ◆
Marriage / civil partnership ■ ■ ◆
Career progression ■ ■ ◆
Partnership or shareholder
business development ▲ ▲
Key employee ▲ ▲
Inheritance tax change option ◆
Fund links
Safety ✚ ✚ ◆
Growth ✚ ✚ ◆
Opportunity ✚ ✚ ◆
Surrender value On cancellation of plan ✚ ✚ ◆
Helplines Lifeline ✚ ✚ ◆
Minimum / maximum details
Maximum benefit
(lump sum / non indexation) £10m ■ £1.5m ▲£2m ◆£10m
Min / max age at entry 16 / 84 16 / 59 ◆16 / 84
Min premium (each plan) £15 £15 ◆£15
■ Personal Assurance Plan ▲ Business Assurance Plan ◆ Wealth Preservation Plan ✚ Personal and Business Assurance Plans ● Optional ■ Personal Term Plan ▲ Business Term Plan ◆ Mortgage Term Plan ✚ Personal, Mortgage and Business Plans ● Optional
Pegasus (whole of life)
Self Assurance (term)
Useful numbers:
Underwriting helpline:
0845 602 0123
Speak with our underwriting team to check details before you submit a case, or ask about a specific illness or occupation. Claims helpline:
0845 271 0007
Specially trained advisers can help you support your clients through this difficult time.
Large case team:
0845 600 1636
Our dedicated large case team, gives the very best service for these important cases. To qualify for this service, applications will need to be for a minimum sum assured or premium. Tax and trust support:
Email us for help and support on all general and protection specific taxation and trust related protection issues.
Scottish Provident is a division of the Royal London Group which consists of The Royal London Mutual Insurance Society Ltd and its subsidiaries. The Royal London Mutual Insurance Society Ltd is authorised and regulated by the Financial Services Authority No.117672 and is registered in England and Wales No.99064. The registered office is 55 Gracechurch Street, London, United Kingdom EC3V 0RL. SCPR5836 SEP10 LCC
