Split sum assured
At Legal & General we understand that getting great deals for your clients is crucial, especially in today’s economy. So we’ve responded to feedback from you and we now offer our term and CIC products on a split sum assured basis covering Mortgage, Family and Business Protection.
Why not choose an area below for more info
2) How it works - Split sum assured
1) What is split sum assured?
Split sum assured gives you the ability to meet your clients needs more easily, meaning they only take out and pay for the cover they need. Following advice, if the client needs different amounts of life and Critical Illness Cover, then this can be met on a split sum assured basis either additional or accelerated. See below:
Identified the customer has protection needs
2) How it works - Split sum assured
Additional
Selecting cover on an additional basis means that the life cover does not reduce when a CIC claim is made. So in this example we would meet the £100,000 Life and £50,000 CIC need with 2 policies:
- £100,000 life and
- £50,000 life and CIC.
The benefit of this is that if your client became critically ill, their CIC policy would pay out separately and their life cover would remain in place to cover their mortgage, family or business interests should the worst happen.
The amount of life cover initially required would not be reduced by the CIC claim and in the event of a life only claim they would receive both policies totalling £150,000, as they would have the extra £50,000 life cover with their CIC policy at no extra cost. This cover is available either via the portals - see how - or in OLP Connect direct by entering both products in the quotes section.
Accelerated
Accelerated cover lets you quote and apply for the same overall level of life cover but as the life cover is shared between the life and life and CIC policies, the life cover will reduce in the event of a CIC claim. So in this example we would meet the £100,000 Life and £50,000 CIC need with 2 policies:
- £50,000 life and
- £50,000 life and CIC.
As a result this type of cover is cheaper but more risky for the client, as if the client became critically ill first , their policy would pay out for CIC but the life element would then be cancelled as each policy only pays out once. The remaining life policy of £50,000 may then not be enough to cover the mortgage, family or business interests should the worst happen.
This cover is available either via the portals - see how - or in OLP Connect direct by entering both products separately in the quotes section.