Life Assurance Terms
LIFE ASSURANCE BENEFIT POLICY
This policy granted by Legal and General Assurance Society Limited, whose main office for the purpose of this policy is at Legal & General House, Kingswood, Tadworth, Surrey KT20 6EU, witnesses as follows:
1. This policy together with the schedule and any revised schedules, policy terms or endorsements made to the policy, form the contract under which this policy is issued.
2. Any revised policy terms and schedules will apply from the effective date of the revised schedule. Any policy terms and schedules superseded by later policy terms and schedules will no longer apply from the effective date of the revised schedule.
3. Where appropriate, words in the singular include the plural and vice versa and words referring to males include females. Words that appear in bold are defined in Part 6 of this policy.
4. All payment due on claims will be provided in line with description of Payment of assurance clause.
5. All payments made to or by us under this policy will be in UK sterling at our main office shown above.
6. Our liability to you is set out in this policy. The terms of this policy will prevail in the event of any conflict with any benefits promised under the plan.
7. The receipt of benefits by you or anyone to whom benefits may become payable under this policy will discharge us from any further liability. We do not need to see the application of such benefits.
8. The benefits provided and eligibility terms under this policy may be changed at your request subject to acceptance by us and to the terms that we set.
9. No assurance under this policy shall acquire a surrender value.
10. Reference to any Act of Parliament shall include any statutory modification or re-enactment of any statutory regulations made for the time being in force.
11. This policy will be governed by and subject to the laws of England and all communication in relation to this policy will be in English.
12. It is agreed and confirmed by the parties to this contract that none of its terms shall be enforceable by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to the contract and as a consequence the parties shall have no obligations to any such person in relation to the variation or rescission of the contract or otherwise.
1 Payment of premiums
You will pay all premiums, including any portion of premiums for your policy. You will pay all premiums to us on each monthly accounting date, or at such other frequency and dates agreed between you and us.
If you do not pay all premiums due under this policy by the due date, or within a period thereafter that we allow, we reserve the right by giving you at least 14 days’ written notice to end the assurance under this policy on expiry of such period of notice. All outstanding premiums due to the end date shall become payable immediately.
If you do not pay a premium which is due under this policy during an accounting period, then we will not have any liability to pay life assurance benefit with respect to an insured member who dies during that accounting period. If you wish to stop paying future premiums under this policy you must give us written notice prior to the date from which you want payment of premiums to stop. The assurance under this policy shall end on that date.
2 Calculation of premiums
The monthly premiums you pay are calculated based on level of cover and your age at the start of the accounting period. Your premiums may increase on an annual bases inline with premium relevant to your age.
3 Change in premium rates
We can change the premium rates with effect from any annual renewal date.
If you meet our requirements in this part, Section 1 with respect to changing premium rates at least four months before the annual renewal date following the guarantee expiry date, we will tell you the changes to the premium rates at least three months before that annual renewal date. Otherwise any change will be effective from that date regardless of there being any delay by you in complying with our requirements in this part, Section 1.
LIFE ASSURANCE BENEFIT
(a) You remain eligible for inclusion in this policy, subject to any overriding provisions and providing the following conditions are met:
i. You are normally resident and working in the United Kingdom; and
ii. The application procedure agreed between you and us has been followed; and
iii. you have provided all the information requested by L&G.
(b) If you default on payment or otherwise cause cancellation of your IPSE membership.
2 Amount of assurance
Subject to the terms of this policy, an assurance shall be put in place under this policy for each insured member for the life assurance benefit from time to time.
Life assurance benefit shown in the policy and the schedule one unit is equal to £5,000:
i. We will only insure life assurance benefit in whole units.
ii. We will not retrospectively change the number of units of life assurance benefit chosen by an insured member.
iii. We will only change the number of units of life assurance benefit chosen by an insured member at a monthly accounting date.
iv. We will restrict benefit for an insured member so it does not exceed the maximum benefit.
3 Payment of assurance
If an insured member dies before the occurrence of any of the events which invalidate the policy, the life assurance benefit will become payable subject to the terms of this policy.
We will pay the life assurance benefits are paid via IPSE in accordance with the terms of the declaration of trust and the plan.
This Policy outlines circumstances in which we will not have liability to pay life assurance benefit with respect to the death of an insured member if you have not paid premiums which are due under this policy.
No life assurance benefit shall be payable under this policy which we are not allowed to pay because of any statutory or regulatory provisions which may apply.
4 Event limit
In the event of a catastrophe, and in respect of all those who die as a result of the catastrophe, L&G will limit the life assurance benefit paid so:
i. the total life assurance benefit paid under this policy, plus
ii. the total benefit paid under an associated policy, plus
iii. the total benefit paid under any other policy we may at any time notify you to be subject to this clause,
does not exceed the event limit. Which L&G offers to IPSE.
If the event limit is exceeded, the life assurance benefit for an insured member whose death results from the catastrophe will be proportionately reduced. L&G reserve the right to immediately change the terms of this policy (including the event limit) following such a change.
Regardless of what L&G state in this policy, if the insured member commits suicide within 12 months of their cover starting, it cannot be claimed for, and L&G will not pay life assurance benefit for that insured member.
L&G will also apply this suicide exclusion in cases where the insured member increases the level of life assurance benefit. For the purpose of this exclusion if an insured member has increased their assurance:
i. L&G will treat the day of the increase as the day cover starts, and
ii. L&G will apply the suicide exclusion to the increase in life assurance benefit on the day of that increase.
L&G will refund premiums for any life assurance benefit that L&G don’t pay because of this exclusion.
6 Trust provisions
All claims must be submitted within 12 months of death, If claimants have not exercised the said power or have only exercised part of any such life assurance benefit after this period. insured member’s death, L&G may refuse to make payments.
It is a requirement of The Policy that an Expression of Wishes Form be completed, in which a beneficiary or beneficiaries may be appointed. The Expression of Wishes Form is available on Your IPSE dashboard on the IPSE Website. The Insured member may complete and submit a new Expression of Wishes Form via the IPSE Website at their own discretion, the most current Expression of Wishes Form will govern.
However, if no Expression of Wishes Form is completed payments will be made to the Insured member’s legal estate. There may however be time and taxation consequences to this form of payment.
IPSE strongly advises all Insured Individuals to seek independent financial advice regarding payment of this benefit. Generally, if the Benefit Sum is paid into Your estate for subsequent division amongst inheritors, it is liable to inheritance tax, whereas completion of the Expression of Wishes Form (with assigned beneficiary or beneficiaries) may allow transfer without inheritance tax being applied. This may not always be the case and is subject to changes in the law. IPSE accepts no liability where tax is unexpectedly applied.
If a beneficiary or beneficiaries have been outlined in Expression of Wishes Form and all of the appointed beneficiaries survive the Insured member, the proceeds will be payable as outlined in the Expression of Wishes Form.
If not all of the beneficiaries outlined in the Expression of Wishes Form survive the Insured Individual, proceeds will be divided equally amongst surviving beneficiaries, unless otherwise stipulated in the Expression of Wishes Form.
If no beneficiary survives, any proceeds payable will be paid to his or her estate.
1 Commencement of assurance
The assurance under this policy starts at the inception date and continues until the date notified by you or us in accordance with this policy or as directed by L&G.
2 Termination of assurance
The assurance under this policy of an insured member will end on the day immediately before the next monthly accounting date:
i. if you reach your benefit termination date or other date agreed between you and us, or
ii. if you choose to end the assurance, or
iii. if premiums stop for the insured member, or
iv. if you leave the plan, or
v. if your IPSE membership lapse
vi. if you no longer meets the eligibility terms, or
ix. if you are subject to an effective winding–up resolution or you cease to carry on business.
3 Temporary break in contract
The assurance in respect of an insured member will continue during breaks in contract, provided you remain an IPSE member and continue paying premiums.
4 Financial crime risk management
We have the right by giving you written notice to:
i. cancel this policy; and
ii. not pay life assurance benefit; and
iii. take other reasonable action
in order to comply with laws, regulations, sanctions regimes, international guidance and/or demands from any authorities, relating to Financial Crime Risk Management Activity.
5 Total discontinuance
(a) If you stop paying or are no longer entitled to pay premiums under this policy the insurance in respect of all insured members will end on the expiry date of any period of notice given in accordance with the terms of this policy.
(b) If your IPSE membership lapses
1 Provision of information and evidence
(a) You will provide us with all data, information and evidence as stated in this policy or as we reasonably require in connection with this assurance.
We will not be liable for any error or omissions on our part that arise solely from any errors in or omissions from any data, information or evidence provided by you. Examples include, but are not limited to:
iii. L&G will restrict life assurance benefit if the data is understated.
iv. L&G will not pay amounts in excess of the life assurance benefit if the data is overstated.
L&G will not pay any additional amount of life assurance benefit claimed by reference to information or evidence requested by us, which was not provided within a reasonable period stated by us.
We will recover from you or, if payment was made directly to any person or persons directed by you, from such person or persons, any overpayment of benefit arising from errors in, or the failure to disclose, data, information or evidence.
(b) We have the right to vary the terms and conditions of the policy or give you written notice terminating it with immediate effect if:
(c) Evidence of the age of an insured member, satisfactory to L&G, will be required before any benefit is paid under this policy in respect of that insured member. If the date of birth notified to us in respect of that insured member proves to be incorrect, L&G reserve the right to adjust the amount of benefit payable under this policy in respect of that insured member, as L&G reasonably consider appropriate.
(d) L&G must be informed of the death of an insured member, via IPSE. Before we pay any benefit, we shall be entitled to receive such evidence of the death of the insured member, and any evidence to ensure the validity of the claim, as we may reasonably require.
(e) We will not start or increase assurance for an Insured member until an application is filled in, submitted and accepted for that assurance.
L&G can decline an application or apply terms and conditions we consider necessary. If we apply terms and conditions.
Restarting any assurance under this policy after such assurance ends will be subject to the terms, conditions and restrictions, including medical evidence, as L&G may need.
(f) You shall provide us, such evidence of your health and assurability as L&G may at any time reasonably.
i. this evidence is not provided when required by us, or
ii. we receive evidence from any source that his health is below the standard acceptable to us for the purposes of assurance under this policy on normal terms, or
iii. evidence from any source discloses any special risk or hazard,
your assurance (or the part of the assurance which evidence is required) will be subject to terms, conditions and restrictions (including declinature) that L&G or IPSE may state.
(g) You shall tell us in writing in the event of wishing to cancel your assurance policy
We reserve the right to vary the terms and provisions of this policy on the happening of any of the above events.
2 Provision of assurance and policy changes
(a) If the assurance of any person under this policy has at any time been terminated, declined or subject to special terms, any subsequent assurance or continuation of assurance under this policy in respect of them (whether or not arising on that person fulfilling or having fulfilled the eligibility terms) may be declined or be subject to terms, conditions and restrictions specified by L&G.
(b) L&G have the right to refuse assurance of, or to impose terms and conditions L&G consider necessary, for any benefits in excess of such an amount notified by us to you from time to time.
(c) Any alteration or addition to the insured basis is subject to the terms we set and will not start until we give you written notification of L&G.
(d) We can change the terms of this policy (other than the premium rates which can be changed in accordance with this as long as we give you at least three months’ notice from an annual renewal date that immediately follows a guarantee expiry date.
(e) We can amend the terms of this policy or terminate it with immediate effect in the event of an amendment or termination of any associated policy.
(f) If you don’t meet the requirements of Part 4, Section 1 in relation to any monthly accounting date within four weeks after that date, we will restrict benefit to the last data you gave us.
(g) We can cancel this policy by giving you 30 days’ written notice if:
i. the requirements of this part, Section 1 in relation to any monthly accounting date are not met within the three months following that date, or
ii. the requirements of this part, Section 1 in relation to any annual renewal date are not met within the three months following that date, or
iii. the requirements of this part, Section 1 in relation to the inception date are not met within the three months following that date. In this event, we reserve the right to terminate the policy from the inception date and refund any premium paid after deducting an amount for expenses incurred. 8
(h) We can change the terms of this policy to reflect any levy, charge or imposition made under the Financial Services Compensation Scheme or other statutory or regulatory provision which affects directly or indirectly the assurance under this policy.
(i) We can change the terms of this policy or terminate it if there is:
i. any change in the law or practice affecting the taxation or operation of Legal & General, our assets or this policy, or
ii. any change in circumstances which, in our opinion, makes it impossible or impracticable to carry out one or more of the conditions of this policy.
EVIDENCE OF HEALTH AND INSURABILITY
This Part of the policy describes when we need details about your health and hobbies before we can consider cover in respect of them.
L&G can ask for details about the health and hobbies of insured members in other circumstances and formats that aren’t shown in this Part before L&G consider cover in respect of them. If L&G do, we will tell you these additional terms and conditions:
i. in the quote you accepted to set up this policy; or
ii. in a quote you accept to revise the policy.
In the event of a conflict, L&G in-force quote terms and conditions relating to the health and hobbies of Insured members will take precedence over this Part of the policy.
2 Providing medical evidence
To apply for cover or a benefit increase, you must first complete an application form. Depending on the answers given, you may also be required to provide full medical evidence as set out in Part 5, Section 3 of this policy, unless we have otherwise agreed with you that full medical evidence will not be requested and the cover to which the application relates will not be provided.
3 Full medical evidence
(a) If required, we will assess the full medical evidence and notify you:
i. if we can provide cover for; and
ii. if we will apply any special terms to;
the benefit for which full medical evidence was supplied.
(b) With respect to any life assurance benefit cover we accept for which full medical evidence was supplied:
i. any special terms set by us will apply to that life assurance benefit. The new special terms will not apply to previously agreed cover.
ii. if you do not agree to any special terms set by us, then you must write to us within 30 days of us setting the special terms to cancel the cover to which the special terms relate.
Means the period starting on the inception date and ending the day before the first annual renewal date and thereafter any period starting on an annual renewal date and ending on the day before the next annual renewal date.
Annual renewal date
Means the annual renewal date shown in the schedule.
Means the form or forms we need an Insured member to fill in and submit when they apply for assurance under this policy.
Means any policy associated to this policy as shown in the schedule.
Benefit termination date
Means the benefit termination date shown in the schedule.
Means an accident or event (or a series of accidents or events occurring within a period of 72 consecutive hours) which results in the death within six months of four or more insured members.
Declaration of trust
Means the declaration of trust together with any amending deeds made by you for the provision and distribution of any benefit payable from the plan.
Means individuals who in your opinion were wholly or partly maintained or financially assisted by the insured member.
Means the effective date shown in the schedule.
Means the terms shown in the schedule for inclusion as an insured member.
Means the amount shown in the schedule.
Expression of Wishes
Form available from IPSE which should be filled in to highlight your preferred beneficiary
Full medical evidence
Means a completed Member’s Declaration form and any other details about an insured member’s health and hobbies we may subsequently ask for to help us consider full cover. This may include a medical examination and or blood and other tests.’Guarantee expiry date’ means the guarantee expiry date shown in the schedule and any subsequent date we tell you in writing.
Means the period starting on the inception date and ending on the guarantee expiry date and thereafter any period ending on a guarantee expiry date notified to you by us.
Means the inception date shown in the schedule.
Means a person who is accepted for assurance under this policy.
The Association of Independent Professionals and the Self-Employed
Your IPSE product which allows access to the Life assurance benefit
Legal and General
Life assurance benefit
Means at any date the amount payable in respect of the death of an insured member, shown in the schedule and subject to Part 2, Section 5 and any overriding provisions to this policy.
Means the maximum benefit in respect of an insured member as shown the schedule.
Means the minimum annual premium agreed between you and us.
Monthly accounting date
Means the date each month, as shown in the schedule when you need to work out, collect and pay us the premiums.
Means the additional provisions which apply to this policy and are shown in the schedule.
Means the plan named in the schedule.
Means this policy and the schedule issued by us, which constitutes the contract between you and us.
Means at any given date the rates of premium used to work out premiums under this policy.
Means the spouse, parents, ancestors and descendants (however remote) of the insured member. The brothers, sisters, uncles and aunts (whether of the whole or half blood) of the insured member and the descendants of any of them. A stepchild or adopted child of any person shall be construed as if they were that person’s natural child.
Means the schedule to this policy.
Means the terms that we offer for cover which we cannot accept at ordinary rates. This will include medical extra premium loadings, exclusions, restrictions, postponements or where cover is declined.
State pension age
Means in respect of the insured member the later of:
i. his state pension age or state pension date; and
ii. his 65th birthday.
Means the unit shown in the schedule.
We, us and our
You and your
Means the Policy Holder.