Key Features of Sainsbury’s Life Insurance Product Offerings

Sainsbury’s Life Insurance Product offerings are provided by Legal & General and are composed of:

• Level Term Insurance
• Mortgage Term Insurance
• Mortgage Decreasing Insurance
• Over 50s Fixed Insurance

Quick Facts

Plan Details

Payment

The policy will pay out the death claim when the Person Insured dies within the plan term and as long as the policy remains in force. If Terminal Illness is included, this will also be paid out upon the diagnosis of terminal illness. For the benefit to be payable for terminal illness, the diagnosis must be made before 12 months prior to the end of the policy term. The plan will only pay the full Sum Insured once. After the payment, the plan will end and the cover terminated.

Eligibility

The products are specifically designed for permanent UK residents. Exclusions may apply for Persons Insured traveling or residing in another country for an extended period.

Number of Policies

More than one policy can be allowed, as long as the total monthly premium does not exceed the maximum limit.

Cash-In Value

There are no cash-in values for the plans, as these are non-investment type plans.

Premiums

Premiums can be:

• Guaranteed. Premiums remain the same throughout the life of the policy, unless changes are made to the cover, or the indexation option is selected.
• Reviewable. The premiums will be up for review after the first five years, and every five year until the plan ends.

Of course, premiums will change if changes are made to the plan.

Additional Benefits/Options

Terminal Illness Benefit

The Terminal Illness Benefit pays the Sum Insured when the Person Insured is diagnosed with a Terminal illness. This terminal illness is such that it has no known cure or is advanced or has rapidly progressed into a condition that is no longer curable. Also, the illness is reasonably expected to lead to death no greater than twelve months after the date of the diagnosis.

Other details:

• The terminal illness must be diagnosed before the last 12 months before the policy ends.
• Once the benefit is paid, there will be no further payments for the death benefit or for other claims. The plan will be terminated and the cover will end.

Accidental Death Benefit

This is automatically provided while the policy s being underwritten. This is free and starts when the policy application is submitted to Sainsbury’s. Accidental Death is defined as death due to a bodily injury that is caused by accidental, violent, external and visible means. This benefit will pay the accidental death benefit for up to a maximum of £300,000 or the Sum Insured, whichever is lower.

Other details:

• The cover is not available if the plan being applied for is a replacement policy and the Person Insured is still covered under the existing plan.
• For joint life policies, the payment will only be on the first life.
• The coverage will continue until the earlier of:
  • The 90-day period
  • The day the policy application is issued, denied or postponed
  • The application is cancelled by the proposed Person Insured
• Accidental death under the following circumstances is not payable:
  • Self-inflicted injury or suicide
  • Taking part of a dangerous activity, pastime or sport
  • Flying other than as a fare paying passenger in a commercial flight
  • Accidents happening in the course of committing, provoking or attempting a crime or assault
  • War, acts or war or riots
  • Alcohol or drug abuse, unless drugs are prescribed by a doctor that is registered and practicing in the United Kingdom
  • Accidents that occurred prior to the submission of the policy application

Critical Illness Cover

This pays the Sum Insured in the event the Person Insured is diagnosed with a covered critical illness. The critical illness must also be included in the list of covered critical illnesses and must meet the definitions provided in the policy.

The Critical Illness Cover will pay if the Person Insured is diagnosed with:

• Alzheimer’s disease
• Aorta graft surgery
• Aplastic anaemia
• Bacterial meningitis
• Benign brain tumour
• Blindness
• Cancer
• Cardiomyopathy
• Coma
• Coronary artery by-pass grafts
• Creutzfeldt-Jakob disease
• Deafness
• Dementia
• Encephalitis
• Heart attack
• Heart valve replacement or repair
• HIV infection (only when caught through covered circumstances and in accepted countries)
• Kidney Failure
• Liver failure
• Loss of hand or foot
• Loss of speech
• Major organ transplant
• Motor neurone disease
• Multiple sclerosis
• Multiple System Atrophy
• Open heart surgery
• Paralysis of a limb
• Parkinson’s disease
• Primary Pulmonary Hypertension
• Progressive supranuclear palsy
• Removal of an eyeball
• Respiratory failure
• Stroke
• Systemic lupus erythematosus
• Third degree burns
• Total and permanent disablement
• Traumatic head injury

Total and Permanent Disability is a benefit paid when the Person Insured becomes totally and permanently disabled. The definition may be based on various definitions (i.e. Own Occupation, Specified Work Tasks etc.) The definition used will depend on the kind of employment the Person Insured has.

Specified Work Tasks include walking, climbing, lifting, bending, getting in and out of a car and writing.

Other details:

• Children’s Critical Illness Cover is automatically included when the plan has critical illness cover.
  • The benefit is the lower of 50% of the Sum Insured or £25,000. For more than one plan, the maximum benefit amount payable per child is £50,000.
  • One claim per child is payable under the plan and each claim will not affect the main benefit amount.
  • Only up to two claims are payable for children’s cover.
  • The child (by birth or adoption) must be between 30 days old to 18 years old (or 21 years old if they are in full time education).
  • The child has to survive for at least 14 days from the day of diagnosis.
  • The critical illness must not be present at birth, or existing before the policy is issued.
• Additional partial payments (the lower of 25% of the Sum Insured or £25,000) will be made for:
  • Ductal carcinoma in Situ of the Breast
  • Low grade prostate cancer

Guaranteed Insurability Option

Changes in life circumstances may warrant an increased need for life insurance cover. This option provides the opportunity to increase the amount of life cover without the need to provide additional medical evidence of insurability.

Other details:

• The Person Insured should be below 45 years old at the start of the plan and when the Guaranteed Insurability Option is included in the plan
• The plan is issued under standard terms.
• The increase is allowed for the following events:
  • Marriage or entry into a registered civil partnership
  • Childbirth or adoption
  • Increase in mortgage due to a new home or major renovation to an existing home
  • Increase in salary due to a promotion or a new job
• The monthly premium will increase, based on the increase in cover.
• A new plan will be issued for the increase in cover amount.

Premium Protection/Waiver of Premium

This ensures that premiums are paid even when the Person Insured is unable to work due to illness or injury.

Other details:

• There is a 26-week waiting period. During the waiting period, the Person Insured must continue to pay for the premiums.
• Premiums will be waived until the earlier of:
  • The end of the plan
  • The Person Insured is able to go back to work
  • The Person Insured is no longer incapacitate

Separation Option

This is for joint life policies. This allows the Persons Insured to get separate cover when:

• The Person insured divorce or dissolve a registered civil partnership
• One Person Insured takes over an existing mortgage (in one name) or takes out  a new mortgage (in one name)

The original policy is cancelled and a new single life policy is issued for each Person Insured.

Other details:

• The request to apply the separation option should be done within 6 months after the dissolution or new mortgage occurred.
• The separation option will no longer be available if one of the Persons Insured has already made a valid claim for Ductal carcinoma in situ of the breast and low grade prostate cancer.
• When applying for this option, the Persons Insured must show evidence of the divorce, dissolution of civil partnership or the documents related to the relevant mortgage.
• Both Persons Insured must provide their consent that the separation option be applied.

Free Life Cover

This is provided for Mortgage Term Insurance and Mortgage Decreasing Term Insurance. This provides life insurance cover while the plan application is being evaluated and during the time between the exchange of contracts and the finalization of the property purchase, or, in Scotland, between the completion of missives and the date of entry.

Other details:

• The proposed Life Insured is below 55 years old at the time the policy is issued.
• The plan is issued with standard ratings.
• The maximum cover is £300,000.

SmoothMove

This benefit is for Mortgage Term Insurance and Mortgage Decreasing Term Insurance. This provides assistance when the family is moving to a new house. This protects against unexpected problems during moving and on the first three months of occupancy of the new home.  This is provided by Inter Partner Assistance.

This includes benefits of up to £750 on the day of the move:

• Roadside repairs and towing or rental fee of a similar vehicle, if the Person Insured’s car breaks down on the way to the new home
• Car recovery
• Rescue removal van (if the designated moving van fails to arrive by the end of the moving day)
• Emergency purchase of toiletries and other personal necessities if things don’t arrive at the new house on the day of the move
• Hotel accommodation (up to three nights, and can including kenneling for pets)

This includes benefits of up to £250 for up to 90 days after occupation of the new residence:

• Emergency home repairs
• Free legal advice

Exclusions

The cover will not pay for:

• Failure to disclose relevant information during the application process
• Fraud or failure to provide accurate information (during application and during the claim)
• Claims after the policy has lapsed due to nonpayment of premiums
• Conditions that are specifically excluded in the policy

How to Make a Claim

When making a death claim, Sainsbury’s will usually require the following:

• Completed claims form
• Death certificate
• Birth certificate of the life insured
• Proof that the claimant is indeed the one to which the benefit is to be paid
• Police reports/doctor’s reports, where applicable
• Other documents that will help Sainsbury’s properly assess the claim

For critical illness or waiver of premium claims, Sainsbury’s may require a medical examination and the diagnosis must be made by a medical specialist that is a consultant at a UK hospital and whose specialty covers the sickness being diagnosed.

Approved countries include the European Union, USA, Canada, Australia, New Zealand, the Isle of Man or the Channel Islands.

The content of this article is provided for informational purposes only and is not created to be a financial advice. Contact Sainsbury's (http://www.sainsburysbank.co.uk) directly for details about their offerings.
Updated on: 11.09.2012

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