What is the Income Replacement Product that Pulse can arrange?
This Income Replacement insurance product protects the income of individuals in the event of them being unable to work for a prolonged period of time, due to accident or sickness.
It is a specialised product which can be purchased on a key person, group or private client basis.
It has two key benefits;
- Should the client claim within the policy period, a monthly Temporary Total Disablement (TTD) benefit will be paid for up to a maximum of 5 years following a selected deferred period.
- A lump sum Permanent Total Disablement (PTD) benefit will be paid at the end of the 5 year period should the insured be unable to return to work. The cover is usually purchased on an “own occupation” basis, which covers the client for their occupation only, which means that the policy will pay out if the client can no longer perform that occupation and that occupation only.
The cover offered is annual and the process for renewal is simple with a Declaration of Health and/or a Proposal Form. Medical evidence may be required if the Insured’s health has changed in the past year
PTD Lump Sums are based on actuarial tables that are in standard use in the Lloyd’s market. However, if this Lump Sum is considered inadequate, we can obtain an indication on an alternative basis. If your client requires a specific PTD Lump Sum, we will endeavour to accommodate this, but it will affect the premium charged.
How does the product work?
The benefit will be paid if the insured person is unable to work due to accident or sickness beyond the selected deferred period. A monthly benefit will then be paid for a maximum period of 60 months. The benefit will cease if the insured person returns to work or reaches their normal retirement age (maximum NRD is age 70).
At the end of the maximum 60 months payment period for TTD, if the applicant is proved to be permanently and totally disabled (PTD) then the lump sum will become payable.
The PTD benefit may be used for a variety of purposes. It is sometimes used to fund the cost of adapting a home for wheelchair access or other specialist medical equipment required. It may be used to generate further income. It is for the insured to determine how the funds are utilised.
Is the premium paid monthly or annually?
The premium is an annual premium, payable on the inception of the policy. It is not possible to pay on a monthly basis.
Is there a minimum premium on this policy?
No, there is no minimum premium on this policy.
Who is this product mainly aimed towards?
This product is normally aimed towards key persons in a company, where the company pays the premium. Having said this, we can also provide this cover for non-key persons on a private basis.
Can you cover clients for this product who travel on a regular basis?
Yes. We can cover clients who travel with their occupations, including travelling to Hazardous countries.
What percentage of the client’s salary can be covered?
This product can cover up to 75% of the client’s salary. However, if there is sufficient justification, underwriters can extend this to 80%.
It is possible to obtain 100% of salary cover in respect of groups.
Is the cover available for non-UK lives assured?
Yes in many but not every case. We are happy to talk about non-UK lives on a case by case basis. This question is governed by Lloyd’s of London regulation, which changes from time to time.
The security for this policy is Lloyd’s of London.