Questions and Answers

Why should I read this document?

The Financial Services Authority is the independent financial services regulator. It requires us, the Metropolitan Police Friendly Society, to give you this important information to help you to decide whether our metfriendly Income Protection plan is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference.

We want you to be comfortable that you understand the 'Key Features' of these products before you decide to proceed. If you do not understand something in this document, please feel free to contact us:

What is a metfriendly Income Protection Plan?

It is a tailored income replacement plan designed specifically to protect police officers and police staff against loss of earnings occurring as a result of illness or injury (at home or work). It will also pay lump sum benefits when pay is reduced and on diagnosis of a defined critical illness before medical retirement (see 'What does the plan cover?').

Who can take out an Income Protection plan?

Anyone aged under 50 who works for the police service in England and Wales

How long does cover continue?

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 retirement. Cover ceases on death.

How does the plan work?

For the purposes of this example, let's say you are off work on sick leave as a result of an illness or injury, either on or off duty. If after four months you remain absent from work, you will normally receive a notice 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 police work prior to the specified six month half-pay date, then you will need to follow the steps below, and we will do the rest!

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. We contact your Doctor and the Occupational Health department of the police service for any further information that is required to assess your claim.

Once approved, we immediately pay you a lump sum benefit of one month's pensionable pay and an ongoing monthly benefit directly into your bank account. We continue to pay monthly benefits throughout your period of sickness absence, providing we receive copies from you of your monthly payslips and medical certificates. We may also from time to time request additional medical and other information from you.

For the benefits applicable during 'half-pay', 'no pay' and on medical retirement (on physical grounds), (see 'Table of Benefits').

How much does the plan cost?

Premiums are the same for males and females. The level of premium is based on your pensionable pay - the "Insured Earnings" - and smoking status. The table below gives you a few examples, assuming that you are in good health at the time of commencement and are accepted at standard rates.

	Pensionable Pay			Monthly Premium Males
	(Insured Earnings)			Smoker	Non-Smoker
	£20.000		£7.50		£10.00
	£24.000		£9.50		£12.00
	£28.000		£10.50		£14.00
	£32.000		£12.00		£16.00
	£36.000		£13.50		£18.00
	£40.000		£15.00		£20.00

Premiums will increase/decrease in line with your pensionable salary and smoking status, so you must tell us of any change in your circumstances e.g promotion, part-time working or smoking status. Failure to do so will affect the level of benefit you may receive in the event of a claim.

We regularly review the premium rate for this plan and apply any change to members already covered by this plan, but we will tell you beforehand if we are going to do this.

What does the Income Protection plan cover?

Under Police Regulations or your conditions of employment, the police service can reduce your pensionable pay by half after six months' sickness absence (in a 12 month period) and to zero after twelve months' sickness absence; you could even be medically retired if there were 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 at specified intervals should any of the above scenarios happen to you (see 'Table of Benefits').

If you are medically retired for any reason other than a mental or nervous condition, then you are entitled to make a claim for a regular monthly benefit. We expect you to seek alternative work if you are able to do so.

Critical Illness

If you are diagnosed with a specified critical illness, then you are entitled to make a claim for a lump sum benefit. The complete list of conditions we cover is set out below.

The complete list of conditions we cover is set out below.
Cancer	excluding less advanced cases
Coronary artery by-pass grafts	with surgery to divide the breastbone
Heart attack	of specified severity
HIV infection	caught from a blood transfusion, a physical assault or in the execution of your duty
Kidney failure	requiring dialysis
Major organ transplant
Stroke	resulting in permanent symptoms
Terminal illness	with death expected within 12 months
Third degree burns	covering 20% of the body's surface area

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. (See 'Is there any other information available that can help me decide which plan to buy? ')

The policy definitions typically use medical terms to describe the illnesses and 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.

When WILL my Income Protection plan pay out?

We will pay the specified benefits if:

Your premiums are up to date, your illness or injury is not excluded, you meet the qualifying conditions, and one or more of the following events occur:

• You are unable to work, due to incapacity (as defined below), resulting in a loss of earnings,
• You are medically retired, except where due to a mental or nervous condition, or
• You are diagnosed with any of the critical illnesses (see 'Critical Illnesses'), you survive the initial diagnosis by 28 days and you meet the other policy conditions for that illness.

Our definition of incapacity is:
You are, as a result of bodily injury occurring or sickness first manifesting itself whilst this Policy is in force;

1. Totally unable to perform your occupation as a serving police officer or as a member of police staff; or
2. Once medically retired, 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 retirement.

Table of Benefits

This table shows how benefits under the plan are calculated:

Event	Lump Sum Benefit (tax free)	Benefit Received (tax free)
Reduction to half pensionable pay	One month's insured earnings	30% of: - Your insured earnings less any other insured benefits to which you are entitled.
Reduction to no pensionable pay or Pension Rate	One month's insured earnings	60% of: - Your insured earnings less any other insured benefits to which you are entitled.
Return to Police work	If you return to Police work, and we had reduced your Monthly Benefit because you were also receiving insured benefits under the Police Federation's Regulation 28 Policy, we will give you back the accumulated reduction as a lump sum.
Diagnosis of a specified Critical Illness (only whilst serving)	6 months' insured earnings.
Medical Retirement (NOT due to mental or nervous conditions	On obtaining employment One month's insured earnings. (Up to six months' insured earnings if your monthly benefits are only paid for a short period.)	Prior to obtaining employment 50% of:- Your insured earnings less any Ill Health Pension Entitlement, and any other insured benefits or earnings.

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 tell us if the figure we are using is incorrect.

Remember that tax and national insurance are deducted from your normal earnings but not from the benefits we pay you (see 'What about tax').

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, if you were to remain on 'no pay' for 12 months or more or were to be medically retired, you would be expected to meet the eligibility conditions for State Employment and Support Allowance or its equivalent at the time, unless you were ineligible due solely to means testing.

You should declare any similar incapacity insurance policies you are paying as this may affect your benefit entitlement in the event of a claim.

Medical Retirement Claims:

Where you have been medically retired, we will assess you in accordance with the policy conditions and definition of Incapacity for Income Protection claims, and we will ask for evidence of your incapacity. We will cease paying or refuse to pay any claim where mental or nervous conditions are a material factor in the reason for medical retirement.

Critical Illness Claims:

Claims will only be considered once you have survived the initial diagnosis by 28 days. Medical evidence and opinion will then be sought from a specialist in an area of medicine appropriate to the cause of the claim.

How many times can I claim?

Income Protection Claims

There is no limit to the number of times you can claim 'half-pay & 'no pay' benefits, providing your pay is reduced in accordance with the (see 'Table of Benefits'). However, the associated lump sum benefits are only payable once for each claim or related claim.

Critical Illness Claims:

You can only ever make one lump sum Critical Illness benefit claim. A claim can only be made whilst you are serving, i.e. prior to medical retirement.

How long will you pay my Income Protection benefit for?

We will pay you a monthly benefit 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 retirement,
• you reach age 60, or
• your death

If you remain on 'no pay' for more than 2 years, the monthly benefit will cease to be paid, but you will still be eligible to claim medical retirement benefits.

What happens to my Income Protection benefit if I get low paid or part-time work after medical retirement?

We will add the money you earn to your police pension and if there is still a shortfall we will pay you a reduced benefit. We will also pay you the "Obtaining Paid Employment following Medical Retirement" benefit. However, this will be proportionate if you obtain part-time work e.g. 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 not pay benefits under the plans if your incapacity, critical illness or medical retirement is caused by any of the following:

• Any exclusion we advise to you at the time of your application
• Exclusions defined in the policy document covering:
• War and civil commotion*
• Hazardous sports and pastimes*
• Flying, other than on commercial flights*
• CBRN contamination*
• Danger - deliberate exposure* (except in an attempt to save human life)
• Alcohol or drug abuse
• Criminal acts
• Self-inflicted injury
• Failure to follow medical advice
• Military Service
• Pregnancy
• HIV - except where caused by blood transfusion, physical assault, or an incident occurring when performing police duties
• Pre-existing conditions - unless we have been notified of them and have agreed to provide cover
• For medical retirement benefits - any mental or nervous conditions
• For critical illness benefits - if you do not survive 28 days after diagnosis
• For No Pay exceeding 12 months or on medical retirement, no further benefit will be paid unless you meet the conditions for State Benefits
• For No Pay exceeding 2 years, no further benefit will be paid (but you will still be eligible for medical retirement benefits)

*except where part of your police duties

How do I pay for the plan?

If you are a member of the Metropolitan Police Service or you are a City of London Police Officer, then 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, 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.

What happens if my salary changes?

We will automatically adjust the benefits and premiums each year for police officers to take account of the annual pay award and any increments you may receive. For those in the Met and the City, we will also increase the benefits and premiums in line with any promotions you receive during your service where we are notified via pay branch or through Police Notices. We will notify you of your benefits annually and you should tell us if our records are materially incorrect. Police staff, and all officers working outside London who are promoted, should inform us immediately their pensionable salary changes - otherwise the premiums payable and any claims we pay will be too low.

How do I apply?

Applications can be initiated online using the following form : Income Protection . If we accept your application we will send you a printed version of your online responses for your records.

Application Forms can also be downloaded in pdf format.

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 process your application as quickly as possible.

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.

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 write to 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 after we have processed your application. In some cases, it may be necessary to decline 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 plans have no cash in value at any time. However, premiums are not payable when you're receiving monthly benefits having made an income protection claim.

What happens if I die?

Your plan will end, no premium refund will be paid and any claim will cease.

Is there any other information available that can help me decide which plan to buy?"

These plans have 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 documents give full details of the cover provided and include all the definitions, exclusions, terms and conditions. Please let us know if you would like to see a copy of either policy.

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.

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.