Questions and Answers

What are MPFS Life Assurance Plans?

They are Life Assurance policies designed to provide a lump sum (death benefit) if an insured person dies during the life of the plan (payment is made on first death only for a joint life plan). The death benefit under the Mortgage Protection Plan (decreasing term) reduces annually in line with the balance outstanding on a repayment mortgage; it therefore has a cheaper premium than an equivalent level (non-reducing) term assurance.

Who can take out a plan?

The insured person(s) must be under 70 years of age when the plan starts and at least one of them must work or have a worked in the police service - or be the partner or close relative of someone who does/has.

How do the plans work?

These are simple life assurance plans designed to pay out a lump sum if an insured person dies during the term of the policy.

• You can take out single life or joint life cover with your partner - a 'Joint Life' policy pays out once only if either of you die.
• IThe benefit can be the same (or 'Level') thoroughout the term; or it can reduce in line with the capital outstanding under a repayment mortgage - (a 'Mortgage Protection Plan').
• There is no benefit if you survive to the end of the term.
• There is no surrender value - if you stop paying premiums the cover will simply cease.
• The full benefit will be paid if an insured person is diagnosed with a terminal illness (with less than 12 months to live) - but not in the final 24 months of the plan (reducing benefit applies to the Mortgage Protection Plan). There is then no further benefit on death.

How much do the plans cost?

Your premium depends on the amount of cover you choose, and how long the plan is to run for (its 'term'). It also depends on your personal circumstances - your age, health, sex, and whether or not you smoke.

How do I pay for it?

If you are a member of the Metropolitan or City of London Police Services, the premiums are paid by salary deduction, otherwise payments are made by direct debit.

What are the charges?

The premium includes all costs for administration, underwriting and claims.

What about Tax?

The death benefit will form part of your estate, and therefore may be subject to inheritance tax. However, on joint life policies the death benefit goes to the survivor and does not form part of the estate of the deceased. Assets left to your legal partner (or to charity) are not subject to inheritance tax. If the policy is assigned (to a lender or another individual), it may not form part of your estate. Taxation treatment may be subject to future changes in legislation.

When WILL the plans pay out?

• If only one person is covered by the plan: on death during the term of the plan.
• If two people are covered by the plan: on the death of the first to die if this occurs during the term of the plan.
• On diagnosis of a terminal illness (with less than 12 months to live), but not in the final 24 months of the term of the plan.
• After any payment the plan immediately expires and cover ceases.

When will the plans NOT pay out?

• If you do not disclose relevant information on your application form.
• If you do not tell us of any of the following changes that occur after completing your application form but before cover starts:
• Your health
• Starting smoking
• Use of drugs or alcohol
• Hazardous pastimes

• If death occurs due to suicide during the first year of the policy.
• If you cancel the policy or if any premiums are more than 30 days overdue (60 days for payroll deductions).

How do I apply?

You should have already obtained a personal illustration detailing the cover you require. If not or your requirements have changed please contact us. Fill in the application form , ensuring that you identify clearly who is to be covered and for what amounts using:

• line(a) for joint life or
• line(b) and/or (c) for single life plans

Detach and return it to us. Please ensure all questions are fully answered to the best of your knowledge and belief. You should not assume we will write to your doctor - it is your responsibility to fill in the application form correctly. We may require further medical evidence (at our expense) - we will let you know if this is the case. Once we have fully considered your application, we will contact you with confirmation of the premium required and any special terms.

Can I change my mind?

Yes - once the plan has started we will send you a cancellation notice with your policy document. If you change your mind you can return the notice within 30 days for a full refund.

What if I stop paying premiums?

If you stop paying premiums for any reason, then the plan will be cancelled and cover will cease 30 days after the due date of the first missed premium (60 days if we collect through payroll deduction).

Is there any other information available that can help me decide which Life Assurance Policy to buy?

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 'A guide to Life Assurance' 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.

How do I contact you?

Metropolitan Police Friendly Society Limited,

Berwick House,

8-10 Knoll Rise,

Orpington,

Kent,

BR6 0EL,

Phone: 01689 891454

Fax: 01689 891455

Metphone 28192

Email: enquiries@mpfs.org.uk

Web: www.mpfs.org.uk.