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2 Individual Protection – Adviser Guide

Explore our Life Insurance and Life plus Critical Illness cover, plus our excellent range of Support Services. Together, we’ll protect your clients and their dependents, whatever life throws their way.

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Individual Protection – Adviser Guide 3

About Canada Life

Our Individual Protection products

Benefits designed for your clients

Our Critical Illness cover benefits

Benefits designed for children

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Support Services

1000+ Rewards, on us

Cover and benefits – at a glance

Critical Illness benefits – at a glance

Our underwriting approach

Maximum cover and underwriting limits

Summary

Contents


Financial ratingsWe hold strong financial ratings through our parent company, so you can rest easy when taking out a policy with us. We are wholly owned by The Canada Life Assurance Company. Canada Life is a subsidiary of Great-West Lifeco Inc and a member of the Power Financial Corporation group of companies.

How it all beganAlthough our business comes all the way from Canada – where we sold our first policy in 1847 – our Individual Protection is based in Bristol and Potters Bar. We have offices throughout the UK, Canada and Europe specialising in a wide range of financial services, from pensions to investments.

We are Canada Life with over 45 years experience covering thousands of customers throughout the UK. Our mission is to help people when they need it most.

About Canada Life

We now support

25,000UK Employers

2.8M UK Employees

£260BN of benefits

We are the biggest provider of Group Insurance in the UK

Rating Agency Measurement Great-West Canada Life 1

A.M. Best Company Financial Strength A+ A+

Dominion Bond Rating Service Financial Strength AA AA

Fitch Ratings Insurer Financial Strength AA AA

Moody’s Investors Service Insurer Financial Strength Aa3 Aa3

Standard & Poor’s Corporation Insurer Financial Strength Subordinated Debt

AA AAAA-

1 Canada Life Assurance Company (which owns 100% of Canada Life Limited) Source: Great-West. Ratings are correct as at 6 March 2019.


When we re-entered the individual protection market in 2015, we brought our strength and experience to individuals and couples looking to protect themselves and their families.


Our Individual Protection products

Level

£

Time

Premium remains unchanged

Cover amount

Increasing

£

Time

Premium increases each year

Cover increases each year

Decreasing

£

Time

Premium remains unchanged

Cover decreases each year

The level of cover reduces on a monthly basis based on a fixed yearly rate of 8%.

Both products are available on Level, Increasing and Decreasing terms.

Life Insurance Life Insurance plus Critical Illness cover

Makes a payment upon death or diagnosis of a terminal illness.

In addition to Life Insurance, Critical Illness cover makes a payment if your client is diagnosed with a serious illness.


Inflation-linked option Trusts available

Optional benefits

Your client can inflation-proof their Level Term policy by choosing the inflation-linked option.

The amount of cover will increase in line with the Retail Prices Index each year. We will write to your client in advance to let them know what the increase in cover and premium will be. They do not have to accept the increase. However, if they do not accept it they will not be able to increase it again in the future.

Your client may benefit from writing their policy under trust.

• The payment can be held outside of their estate for Inheritance Tax purposes

• Trustees ensure the money goes to the most appropriate people, even where there is no will in place

• There is no need to wait for probate to make the payment

Both our trusts are split trusts. This means they are suitable for both our products: the critical illness is split from the life insurance so the critical illness can be held for the policyholder while the life insurance is held in trust for the beneficiaries.

Bare Gift Trust With this type of trust the donor must name their beneficiaries and what share of it they want each to receive. The trust is for the absolute benefit of named individuals. Once the trust has been established, the trustees cannot change the beneficiaries or the amounts they will receive.

Discretionary TrustThis type of trust is more flexible than the Bare Gift Trust. It includes a wide range of potential beneficiaries and allows further beneficiaries to be added after the trust is set up.


A wide range of services

Benefits designed for your clients

Life InsuranceLife insurance is included in all our policies. On a joint life policy the payment is made to the surviving policyholder. Once it has been paid the policy ends. See page 13 for further

details of our comprehensive support services.

Waiver of premium benefitAt the start of their policy, your clients can choose to pay an additional premium. By doing so, if they are unable to do their usual job for at least 13 weeks due to illness or disability, they won’t have to make their payments.This benefit will continue for as long as they are unable to work, but expires when they reach the age of 70 or the policy ends.On joint life policies, this benefit is available to each of your clients. There is a seperate charge for each of them.


Critical Illness coverCritical Illness cover is only available with Life Insurance plus Critical Illness plans.If a policyholder is diagnosed with a critical illness while the policy is in place, we will make a payment.

There are 52 core critical illness conditions and 44 additional critical illness conditions.

Single life insurance Joint life insurance

A core illness claim

We will make a full payment for a core illness claim. The plan will then end.

We will make a full payment for the first core illness claim. The plan will then end.

Additional illness claims

We will pay 25% of the amount of cover, up to £25,000. The plan will continue in case your client(s) needs to claim again.

Your client make up to four additional or child specific claims in total.

Your client can make up to six additional or child specific claims in total (see page 11).

Once your client has made four claims, we can still pay a claim if they:

• Are diagnosed with a core critical illness • Are diagnosed with a terminal illness.• Die• Are totally and permanently disabled (providing they

took out this optional extra)

The plan finishes when we have paid the claim.

Once your clients have made six claims, we can still pay a claim if one of them:

• Is diagnosed with a core critical illness • Is diagnosed with a terminal illness• Dies• Is totally and permanently disabled (providing they took

out this optional extra)

The plan finishes when we have paid the claim.

Terminal Illness coverAll our policies will make a payment if the person with cover is diagnosed with a terminal illness which a consultant confirms will lead to death within 12 months.

On joint life policies the payment can be made if either person is diagnosed with a terminal illness.

Our terminal illness cover runs to the end of the plan. Once a payment has been made the policy ends.


52 Core critical illness conditions

Our Critical Illness cover benefits

Aorta graft surgery

Aplastic anaemia with permanent bone marrow failure

Bacterial meningitis resulting in permanent symptoms

Benign brain tumour resulting in permanent symptoms or with specified treatment

Benign spinal cord tumour resulting in permanent symptoms or with specified treatment

Blindness permanent and irreversible

Brain abscess with specified treatment

Brain injury due to anoxia or hypoxia resulting in permanent symptoms

Cancer excluding less advanced cases

Cardiac arrest with insertion of a defibrillator

Cardiomyopathy of specified severity

Cauda equina syndrome with permanent symptoms

Chronic lung disease advanced stage respiratory failure

Coma resulting in permanent symptoms

Coronary artery by-pass graft

Creutzfeldt-Jakob disease resulting in permanent symptoms

Deafness permanent and irreversible

Dementia resulting in permanent symptoms

Encephalitis resulting in permanent symptoms

Heart attack

Heart failure

Heart valve replacement or repair

HIV infection caught from a blood transfusion, physical assault or accident at work

Intensive care requiring mechanical ventilation for 10 consecutive days

Kidney failure requiring permanent dialysis

Liver failure of specified severity

Loss of hand or foot permanent physical severance

Loss of independence

Loss of speech total permanent and irreversible

Major organ transplant from another person

Motor neurone disease resulting in permanent symptoms

Multiple sclerosis with clinical symptoms

Myasthenia gravis with specified symptoms

Neuromyelitis optica (Devic’s disease) with clinical symptoms

Paralysis of a limb total and irreversible

Parkinson’s disease resulting in permanent symptoms

Parkinson plus syndromes resulting in permanent symptoms

Peripheral vascular disease requiring bypass surgery

Primary pulmonary arterial hypertension of specified severity

Pulmonary artery surgery

Removal of an eyeball due to injury or disease

Removal of a complete lung

Rheumatoid arthritis of specified severity

Severe Crohn’s disease treated with two surgical intestinal resections or removal of entire large bowel

Spinal cord stroke resulting in persisting symptoms

Stroke resulting in persisting symptoms

Structural heart surgery

Syringomyelia or syringobulbia with surgery

Systemic lupus erythematosus with serious complications

Third degree burns covering at least 20% of the surface area of the body or 20% of the face or head

Traumatic brain injury resulting in permanent symptoms

Ulcerative colitis treated with total colectomy (removal of the entire bowel)

10


44 Additional critical illness conditionsAdult serious accident benefitWe will pay £7,500 to a policyholder who is in hospital or another recognised medical establishment, with physical injuries for a minimum of 28 consecutive days immediately following an accident. Their injuries must have resulted solely and directly from sudden, unforeseen, external and visible means and must be independent from any other cause. We will make a maximum of two payments under the policy.

Optional total and permanent disability coverThis is an optional cover for adults, available for an additional charge at the start of a Life Insurance plus Critical Illness policy.

If included, we will make a full claim payment if the insured person is diagnosed as being totally and permanently disabled. After this the policy will end.

On joint life policies, this cover is available to each insured person and there is a separate charge for each person covered.

Please note: Your client must survive for at least 14 days from when they are first diagnosed or where applicable the date of surgery in order to make a claim.

Aortic aneurysm with endovascular repair

Aplastic anaemia of specified severity

Carotid artery stenosis with surgical repair

Central retinal artery or vein occlusion

Cerebral or spinal aneurysm with specified treatment

Cerebral or spinal arteriovenous malformation with specified treatment

Chronic hepatitis B or C

Coronary angioplasty with specified treatment

Crohn’s disease treated with intestinal resection

Diabetes mellitus Type 1

Drug resistant epilepsy treated with invasive surgery to brain tissue

Guillain-Barré syndrome with persisting clinical symptoms

Infective bacterial endocarditis

Less advanced cancers:

• anus – treated with surgery

• appendix, colon or rectum – treated with surgery

• bile ducts – treated with surgery

• breast – treated with surgery

• cervix – treated with surgery

• gall bladder – treated with surgery

• larynx – with specified treatment

• lung and bronchus – with specified surgery

• oesophagus – with surgery to remove the tumour

• oral cavity or oropharynx – treated with surgery

• ovary – with surgery to remove an ovary

• pancreas – treated with surgery

• renal pelvis and ureter – of specified severity

• prostate – requiring treatment

• small intestine – treated with surgery

• stomach – treated with surgery

• testicle – with specified surgery

• thyroid – treated with surgery

• urinary bladder

• uterus – treated with specified surgery

• vagina – treated with surgery

• vulva – treated with surgery

Non-invasive gastro intestinal stromal tumour

Non-malignant pituitary gland tumour with specified treatment

Pericarditis chronic constrictive pericarditis or requiring surgery

Permanent pacemaker insertion for heartbeat abnormalities

Removal of one or more lobes of the lung

Severe sepsis

Significant visual loss permanent and irreversible

Third degree burns covering 10% of the surface area of the body or 10% of the face or head

Urinary bladder removal

Please download our Critical Illness Definitions Guide for a guide to conditions covered

http://documents.canadalife.co.uk/individual-protection-critical-illness-definitions-guide.pdf


Benefits designed for children

Our Life Insurance plus Critical Illness policies automatically provide a number of benefits for children.

Children’s terminal illness coverWe will pay 50% of the cover amount, up to a maximum of £25,000, if a claim cannot be made under any other core or child specific critical illness and your child is diagnosed with a terminal illness and is not expected to live for more than 12 months.

We will also pay the children’s funeral cover benefit early.

Children’s funeral coverWe will pay £10,000 on a death claim for a child. We will make a maximum of two payments under the policy.

Children are covered for 51 of the core critical illness conditions for 50% of your client’s amount of cover (up to £25,000)*

Children are covered for the 44 additional critical illness conditions for 25% of your client’s amount of cover (up to £25,000)

Children are covered for a further six child specific medical conditions for 50% of your client’s amount of cover (up to £25,000):

* Children aged less than five years old are not covered for the core condition of loss of independence. Children are not covered for the core critical illness of Intensive care as they are covered under Children’s intensive care benefit.

Children’s Critical Illness cover Definition of a child is...

• a natural child;• a legally adopted child (who

will be covered from the date of their adoption); or

• a step child by marriage or registered civil partnership (who will be covered from the date of marriage or civil partnership).

For the core and additional critical illnesses the symptoms must be first evident after the start of the policy or legal guardianship of the child began.

Children’s specific illness claims can be made from birth if a policy is taken out before they are born. If a policy is taken out after a child is born, symptoms must be first evident at least 12 months after the policy Start date for a claim to be made.

We protect children for the core and additional illnesses who are:• older than 30 days, and• younger than 18 years, or• younger than 22 years if in

full time education during the period of cover. (This includes work placements, but excludes breaks from education such as a gap year).

• Cerebral palsy

• Children’s intensive care benefit

• Cystic Fibrosis

• Hydrocephalus

• Muscular dystrophy (MD)

• Spina bifida myelomeningocele or myelogchisis


Support Services

At Canada Life, we believe insurance is about much more than just a financial benefit.

We provide our customers with a comprehensive set of Support Services, at no additional cost

Bereavement Counselling Losing someone close can be devastating – no one should go through it alone. Our bereavement counselling service provides up to four telephone sessions with a qualified counsellor.

Probate Helpline Our Probate Helpline provides access to probate experts who can help employees with will writing, administration of estate, finding missing beneficiaries and applying for probate.

Note: Personal Nurse Service and Second Medical Opinion are also available if the Life Assured or a child are diagnosed with a terminal illness.

Personal Nurse ServiceProvides long-term practical and emotional support over the phone with the same qualified nurse, for individuals who make a critical illness claim.

Second Medical Opinion service Provides a second opinion from a UK consultant on the diagnosis and treatment of a medical condition to give confidence that a diagnosis and treatment plan is suitable. The service is available for individuals who make a critical illness claim.

PersonalCare PersonalCare is a personal assistance programme that provides professional counselling for any issue, either face-to-face or by telephone. You’ll also have access to support on everyday matters such as finding childcare or eldercare, legal issues and debt management.

Support Services for Life Insurance

Extra Support Services for Life Insurance plus Critical Illness


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Confidential Counselling24/7 Support on a

wide range of issues

Wellbeing HubUse our wellbeing resources and reach your health goals

Included FREE with our cover

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Our comprehensive range of protection policies suits every budget and level of cover.

Cover and benefits – at a glance

Product features Life Insurance Life plus Critical Illness

Limits that apply

Minimum and maximum plan term

3 & 40 years 3 & 40 years

Minimum age of insured person at start

18 years 18 years

Maximum age at start 80 years 65 years

Maximum age at end 85 years 70 years

Maximum sum assured Insured person’s age

Maximum total sum assured

Insured person’s age

Maximum total sum assured

18-40 £1,000,000 18-40 £750,000

41-45 £750,000 41-45 £450,000

46-50 £600,000 46-50 £350,000

51-55 £400,000 51-60 £200,000

56-60 £300,000 61-65 £100,000

61-80 £150,000

Waiver of premium – disability period

13 weeks 13 weeks

Waiver of premium end 70th birthday 70th birthday

Product features Life Insurance Life plus Critical Illness

Overview

Terminal Illness benefit – right to the end of the plan

Yes Yes

Adult serious accident benefit No Yes

Optional waiver of premium benefit (additional cost)

Yes Yes

Optional Total and permanent disability benefit (additional cost)

No Yes

Accidental death benefit while application is processed

Yes Yes

Unpaid premium period which triggers a policy to end.

60 days or x 2 unpaid premiums

60 days or x 2 unpaid premiums

Inflation-linked option available (not available for decreasing policies)

Yes Yes

Increase option available Only if accepted on standard terms

Only if accepted on standard terms


Critical Illness Benefits – at a glance

Product features Cover provided

Benefits

Adult death benefit 100% of the amount of cover

Adult terminal illness benefit 100% of the amount of cover

Adult total and permanent disability benefit (optional benefit)

100% of the amount of cover

Adult core critical illness benefit 100% of the amount of cover

Adult additional critical illness benefit 25% of the amount of cover (up to £25,000)

Child core critical illness benefit 50% of the amount of cover (up to £25,000)

Child additional illness benefit 25% of the amount of cover (up to £25,000)

Child specific critical illness benefit 50% of the amount of cover (up to £25,000)

Adult serious accident benefit £7,500

Children’s terminal illness 50% of the amount of cover (up to £25,000)

Children’s funeral cover £10,000

Number of critical illness conditions

Core critical illness 52

Additional critical illness 44

Child specific critical illness 6

Product features Life plus Critical Illness

Maximum number of payments

Adult serious accident benefit 2

Children’s funeral cover 2

Core, additional and children’s critical illness (Single life plans)

4

Core, additional and children’s critical illness (Joint life plans)

6

Example maximum number of payments

£100,000 single life plan 9 payments – totalling £235,000

×2 adult serious accident claims (£7,500 each)

×4 additional critical illness claims (£25,000 each)

×2 children’s funeral claims (£10,000 each)

×1 adult core critical illness, terminal illness, death or total and permanent disability claim (£100,000)

£100,000 joint life plan 11 payments – totalling £285,000

×2 adult serious accident claims (£7,500 each)

×6 additional critical illness claims (£25,000 each)

×2 children’s funeral claims (£10,000 each)

×1 adult core critical illness, terminal illness, death or total and permanent disability claim (£100,000)


Our underwriting approach

We’ve invested in technology to make our application process as straightforward as possible.

Premium reduction for full cancer exclusion

We will identify the reduction in our underwriting process and let you know what the lower premium will be. If your client takes up the offer we will reduce our price for them.We can not apply this to policies where we have already applied a full exclusion.

Of those we manually underwrite, an additional 75% are offered termsAs we don’t ask for a doctor’s report, there are unfortunately some pre-existing conditions like cancer, heart attack or stroke, where we are unable to offer terms.

However, weighed up against the time taken to get a doctor’s report – especially when customers are looking for a ‘buy now’ price –

Dedicated underwriting teamWhere additional information is required, we use:

75% of customers are accepted immediately

An application can be underwritten and terms offered in under 20 minutes

We don’t ask for GP reports

Whilst we appreciate the value these can add, we can get all the answers needed by carefully worded questions and trusting the customer disclosure instead.

75%

Questions to the adviser

Medical Screening

Tele Interview

for example when blood tests are required

For clients with a family history of cancer we will reduce the cost of a Life Insurance plus Critical

Illness policy by up to

20%when we apply a full

cancer exclusion.we believe our approach is putting the customer first.


Maximum cover and underwriting limits

The tables below show the maximum sum assured in your client’s age category.

Life Insurance Life Insurance plus Critical Illness

NOTEA Nurse screening examination includes a cotinine (nicotine) test for non-smokers.

Age Maximum Sum Assured

Nurse Screening Examination required from

18-30 £1,000,000 £800,001

31-35 £1,000,000 £750,001

36-40 £1,000,000 £700,001

41-45 £750,000 £500,001

46-50 £600,000 £400,001

51-55 £400,000 £300,001

56-60 £300,000 £200,001

61-65 £150,000 £100,001

66-70 £150,000 £50,001

71-75 £150,000 £50,001

76-80 £150,000 £25,001

Age Maximum Sum Assured

Nurse Screening Examination required from

18-30 £750,000 £450,001

31-35 £750,000 £400,001

36-40 £750,000 £400,001

41-45 £450,000 £350,001

46-50 £350,000 £250,001

51-55 £200,000 £150,001

56-60 £200,000 £150,001

61-65 £100,000 £75,001


Summary

We want to be easy to do business with, so you spend more time with your customers and less time on administration:

Speed of decisionA standard terms case could be underwritten and activated in under 20 minutes

Real time updatesDuring the application process our system keeps you and your client informed of the likely price and outcome

75%

Pre-Sale UnderwritingOur system allows you to pre-sale client disclosures allowing an accurate price to be given to the client ahead of application

75% of customers are accepted immediatelyOur online application allows as many as possible to get immediate acceptance

A wide range of Support ServicesOur Support Services give policyholders somewhere to turn when they need a little help. Some of them are free to use from day one

Comparison Service PartnersYou can currently obtain quotes through five comparison services:

• IRESS

• The Protection Platform (UnderwriteMe)

• iPipeline

• Webline

• True Potential

Life Insurance (Advised) Level Term and Level Term Critical Illness have a comprehensive level of features and benefits.

More information is available on our website: www.canadalife.co.uk/individual-protection

Canada Life Limited, registered in England no. 973271. Registered Office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. CLFIS (UK) Limited, registered in England no. 04356028 is an associate company of Canada Life Limited. Registered Office: Canada Life Place, Potters Bar, Hertfordshire EN6 5BA.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

ID6442 – 221R(B)

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