Questions and Answers
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Income Protection
- Key Features Introduction
- Aims, Commitment and Risks
- Questions and Answers
- Other Information
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Quotes
- Online IP Quote...
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Application Form
- Application Form (pdf)
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Additional Information
- EU Gender Directive
- Policy Wordings (pdf)...
- Brochure (5Mb)...
- Contact us for further information
What is an MPFS Income Protection Plan?
It is a tailored income replacement plan designed specifically to protect police officers and police staff against loss of earnings occuring as a result of injury or illness (at home or work). It will also pay lump sum benefits during incapacity or on diagnosis of a defined critical illness (see 'What does the plan cover?').
Who can take out a plan?
Anyone aged 50 or under who works for the police service in England, Scotland or Wales and is engaged in the full duties appropriate to his/her current rank/grade and not under any criminal, civil or disciplinary investigation. Cover under the plan will continue until age 60, unless you leave the police service for any reason (including a career break) other than medical discharge, or on earlier death.
How does the plan work?
For the purposes of this example, let's say you have our income protection plan and you are injured whilst on-duty at your place of work, and as a result are placed on long-term sick leave by the Chief Medical Officer. If after four months you remain absent from work, you will normally receive a notice from Human Resources advising you of your likely half-pay date and your right of appeal. If you choose not to appeal or your appeal is unsuccessful and you are unlikely to return to either recuperative, restricted or full duties prior to the specified six month half-pay date, then follow the steps below and we will do the rest!
Step 1
Contact us to obtain a claim form which you complete and return to us, together with your current medical certificate, official notice of half pay, bank details, and consents to obtain medical reports from both your Doctor and the police service.
Step 2
We contact your Doctor and the Occupational Health department of the police service for any further information that is required to assess your claim.
Step 3
Once approved, we pay you a lump sum benefit and an ongoing monthly benefit (see 'Table of Benefits') directly into your bank account. We continue to do this throughout your period of sickness absence, providing we receive copies of your monthly payslips and medical certificates. We may also from time to time request additional medical and other information from you.
How much does the plan cost?
The level of premium is based on your pensionable pay - the "Insured Earnings". The table below gives you a few examples:
| Pensionable Pay | Monthly Premium Males | Monthly Premium Females | ||||||
|---|---|---|---|---|---|---|---|---|
| (Insured Earnings) | Smoker | Non-Smoker | Smoker | Non-smoker | ||||
| £16.000 | £6.67 | £6.00 | £12.00 | £10.80 | ||||
| £20.000 | £8.33 | £7.50 | £15.00 | £13.50 | ||||
| £24.000 | £10.00 | £9.00 | £18.00 | £16.20 | ||||
| £28.000 | £11.67 | £10.50 | £21.00 | £18.90 | ||||
| £32.000 | £13.33 | £12.00 | £24.00 | £21.60 | ||||
| £36.000 | £15.00 | £13.50 | £27.00 | £24.30 | ||||
| £40.000 | £16.67 | £15.00 | £30.00 | £27.00 | ||||
To work out the premium for your salary all you need do is add together line 1 (basic pay officer, national pay police staff), line 2 (London weighting officer, location allowance police staff) & competency related pay (police officer, if applicable) & multiply this figure by 0.005 for males or 0.009 for females. A discount of 10% applies to non-smokers. Police staff may have additional pensionable allowances that can be included. We may change the multipliers shown above for members already covered by this plan, but we will tell you beforehand if we are going to do this.
What happens if my salary changes?
We will automatically adjust the Insured Earnings & premium each January for police officers to take account of the annual pay award and any increments you may receive (providing you tell us of your joining date, any promotions you receive and if you change your working hours). Police staff should inform us immediately their pensionable salary changes, otherwise the premiums payable, Insured Earnings and any claims we pay will be too low.
How do I pay for the plan?
If you are a member of the Metropolitan or City of London Police Service the premiums are paid by salary deduction, otherwise payments are made by direct debit.
What does the plan cover?
Income Protection
Under Regulation 28 and the police service Attendance Management Policy, the police service can reduce your pensionable pay by half after six months sickness absence and to zero after twelve months sickness absence; you could even be medically retired if there was no prospect of you making a full recovery. This plan is specifically designed to provide you with a tax-free regular monthly benefit and lump sum benefits should any of the above scenarios happen to you (see 'Table of Benefits').
| The complete list of conditions we cover is set out below. | |
|---|---|
| Alzheimer's disease | resulting in permanent symptoms |
| Aorta graft surgery | for disease |
| Benign brain tumour | resulting in permanent symptoms |
| Blindness | permanent and irreversible |
| Cancer | excluding less advanced cases |
| Coma | resulting in permanent symptoms |
| Coronary artery by-pass grafts | with surgery to divide the breastbone |
| Deafness | permanent and irreversible |
| Heart attack | of specified severity |
| Heart valve replacement or repair | with surgery to divide the breastbone |
| HIV infection | caught from a blood transfusion, a physical assault or in the execution of your duty as a police officer |
| Kidney failure | requiring dialysis |
| Loss of speech | permanent and irreversible |
| Loss of hands or feet | permanent physical severance |
| Major organ transplant | |
| Motor neurone disease | resulting in permanent symptoms |
| Multiple sclerosis | with persisting symptoms |
| Paralysis of limbs | total and irreversible |
| Parkinson's disease | resulting in permanent symptoms |
| Stroke | resulting in permanent symptoms |
| Terminal illness | |
| Third degree burns | covering 20% of the body's surface area |
| Traumatic head injury | resulting in permanent symptoms |
These headings are only a guide to what is covered. The full definitions of the illnesses covered and the circumstances in which you can claim are given in the policy document. These typically use medical terms to describe the illnesses but in some cases the cover may be limited.
For example: Some types of cancer are not covered, and to make a claim for some illnesses, you need to have permanent symptoms. (Also see 'When WILL the plan pay out?').
Table of Benefits
This table shows how benefits under the plan are calculated:
| Event | Benefit Received |
|---|---|
| Reduction to half basic pensionable pay | A lump sum of one month's insured earnings (even if you go straight to No Pay or Medical Discharge), followed by a regular payment of 30% of: - your insured earnings less any other benefits or earnings, both tax-free. |
| Reduction to no basic pensionable pay | A lump sum of one month's insured earnings (even if you go straight to Medical Discharge), followed by a regular payment of 60% of: - your insured earnings less any other benefits or earnings, both tax-free. |
| Medical discharge (not due to mental or nervous conditions) | 50% of: - your insured earnings less any pension entitlement and/or any other benefits or earnings, tax-free. Any increase in your pension entitlement or other benefits due to index-linking is ignored, ie not set against your insured earnings. On return to full-time permanent work you get a further lump sum of one month's insured earnings. |
| Diagnosis of any one of 23 specified critical illnesses | A one-off lump sum payment of 6 months' insured earnings, tax-free. |
The rate of pensionable pay we use ("insured earnings") is that on which your premiums are based (or your actual pensionable pay at the time of claim if lower) and will be advised to you each spring. You should advise us if the figure we are using is too low, eg due to promotion. Remember that tax and national insurance are deducted from your normal earnings but not from the benefits we pay you. This may however change in the future.
Example
Constable with 2 years' service (£27,540 pensionable pay) reduced to half-pay after 6 months' incapacity (on full pay) and remaining off work for 2 years:
| £2,295 plus £689 pm | payable for 6 months while on half-pay, then |
| £2,295 plus £1,377 pm | payable for next 18 months* while on no-pay, until return to work. |
* After 12 months of 'no pay' benefit you must meet the eligibilty criteria for state benefits (State Employment and Support Allowance).
What are the charges?
The premium includes all costs for administration, underwriting, claims and the fees payable for any medical examinations which we may ask you to attend.
What about tax?
Present UK tax law and HMRC practice means you don't:
- get tax relief on premiums, nor
- pay tax on any benefits claimed under the plan.
This may change in the future.
When WILL the plan pay out?
We will pay monthly benefit under the plan providing:
Income Protection:
- You are unable to work, due to incapacity (as defined below), resulting in a loss of earnings (see 'Table of benefits').
Critical Illness:
- You are diagnosed with a specified critical illness (see 'What does the plan cover?').
Income Protection & Critical Illness:
- Your injury/illness is not excluded, and
- Your premiums are up to date.
Our definition of incapacity is:
You are, as a result of bodily injury occuring or sickness first manifesting itself whilst this Policy is in force;
- Totally unable to perform your occupation as a serving police officer in accordance with provisions of Regulation 28 or as a member of police staff in accordance with Attendance Management Policy; or
- Once medically discharged, unable to perform any other occupation for which you are reasonably fitted by training, education or experience subject to any physical limitations imposed by the condition causing medical discharge.
How will you assess my claim?
Income Protection: Whilst you remain a serving officer or member of police staff we will respect the decision of the Police Service during any period of incapacity. However, where a period of No Pay extends beyond 12 months, we will expect you to meet the eligibility criteria for claiming state benefits (Employment and Support Allowance). Where you have been medically discharged we will assess you in accordance with 'our definition of incapacity' and we'll ask for evidence of your incapacity (including medical certificates) and entitlement to state benefits.
You should declare any similar health insurance policies you are paying as this may affect your benefit entitlement in the event of a claim.
Critical Illness: Medical evidence and opinion will be sought from a specialist in an area of medicine appropriate to the cause of the claim.
How long will you pay my monthly benefit for?
We will pay an Income Protection claim until:
- you return to your usual occupation,
- you are no-longer incapacitated
- you obtain full-time paid employment once medically retired,
- you leave the police service for any reason (including a career break) other than medical discharge,
- you reach age 60, or
- you die.
Can I claim again after I return to work?
There is no limit to the number of claims you can make under the income protection part of the policy, and you can claim again for the same or a related cause within 6 months of returning to work providing your pay is reduced in accordance with the 'Table of Benefits'. (although you will only be eligible for the lump sum benefits that have not already been paid). You can only make one critical illness claim.
What happens to my Income Protection benefit if I get part-time work after medical retirement?
We will add the money you earn to your police pension and pay you a reduced benefit. We will also pay a proportionate lump sum benefit eg. if you work 3 days a week, we will pay 60% of one month's insured earnings.
When will the plan NOT pay out?
We will not pay benefits under the plan if your incapacity or critical illness is caused, or contributed to, directly or indirectly, by any of the following:
- War, invasion, acts of foreign enemies, hostilities, civil war, riot or civil commotion, terrorism, rebellion, revolution, insurrection or military or usurped power except where being engaged in such activity is part of your duties of the insured person as a police officer or member of police staff,
- Any physical defect, infirmity, medical condition or chronic or recurring sickness which existed prior to the date of your entry into the plan unless the condition is notified to and accepted by us,
- Chemical, biological, radioactive or nuclear contamination, except where such contamination results from the pursuit of your duties as a police officer or member of police staff,
- In the event of medical discharge, any mental or nervous condition - this includes the consequences of any surgery you undergo for psychological reasons,
- Dangerous or hazardous activities, sports or pastimes (for example Scuba diving and private flying) except where such activities are part of your duties as a police officer or member of police staff,
- Deliberate exposure to exceptional danger (except in an attempt to save human life), your own neglect, criminal or felonious act, or misuse of alcohol, solvents or the taking of drugs except under the direction of a registered practitioner,
- Pregnancy/childbirth, except where incapacity is as a result of complications of pregnancy as diagnosed by a doctor or consultant who specialises in obstetrics,
- Infection by Human Immunodeficiency Virus, except where such infection was as a result of a blood transfusion, physical assault or in the course of your duties as a police officer or member of police staff,
- In the event of No Pay exceeding 12 months, or medical discharge, if you do not qualify for state benefits (Employment and Support Allowance) unless the only reason for failing to qualify is by virtue of a means test,
- Unreasonable failure to seek or follow medical advice by an attending physician or where your actions are delaying the process of recovery,
- Self inflicted injury,
- Naval, military or air force service.
How do I apply?
Fill in the application form(s)on the right and send them to our contact address.
It is important that you consider the questions carefully, and answer them fully. We will review your details and decide the basis on which we can accept you for cover. If necessary, we may need to ask you or your Doctor for any further information we need to help us do this.
For applications where no additional underwriting is required cover commences immediately we accept your application, normally within a few days of receipt. On the occasions where additional medical underwriting is required we will do our best to process your application as quickly as possible.
If you have a pre-existing condition that may need treatment in the future, we will usually exclude it from cover along with any conditions related to it (see 'When will the plan NOT pay out?'). We will call you prior to issuing the policy document to advise you of any proposed exclusions; once agreed those exclusions will appear on the policy schedule you receive from us with your policy document when we have processed your application.
Can I change my mind?
You will have 30 days from the time you receive your policy document and schedule to review them. If, during this period, you decide to change your mind, you will receive a full refund of any premiums you have paid, providing that you have not already made a claim.
What if I stop paying premiums?
We will not authorise a claim and if a premium remains outstanding for more than 30 days your plan will end. The plan has no cash in value at any time. Premiums are waived during the payment of a claim.
What happens if I die?
Your plan will end and no premium refund will be paid.
Is there any other information available that can help me decide which Income Protection policy to buy?"
This plan has been specifically designed around your conditions of service, so the benefits (and premiums) are tailored to suit your needs and not be excessive. The policy document gives full details of the cover provided and includes all the definitions, exclusions, terms and conditions. A specimen copy is available on request should you wish to see this before making your decision. Additionally, the Association of British Insurers (ABI) provides guidance on the suitability of Income Protection on the 'Information Zone' section of their website www.abi.org.uk. However, if you are still unsure as to the suitability of this plan, and wish to obtain personal advice, you should contact an independent financial adviser.