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 decide if this product 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.
They are insurance policies designed to provide a lump sum (death benefit/sum assured) if an insured person dies during the term of the plan (payment is made on first death only for a joint life plan). Certain plans have the option of including critical illness cover (at a higher cost), in which case the benefit would be paid out on diagnosis of one of a set of defined critical illnesses (see below), or on earlier death. The benefit under the Mortgage Protection Plan ("Decreasing Term Assurance") reduces annually in line with the balance outstanding on a repayment mortgage; it is therefore cheaper than an equivalent "Level Term Assurance" with a constant (non-reducing) benefit.
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 worked in the police service - or be the partner or close relative of someone who does/has.
If you wish to have critical illness cover included in your plan, then it must be on a single life basis only (i.e. only you are covered, or if you are a couple, you must each take out your own plan) as we do not offer critical illness cover on joint life plans, and the plan must end before your 60th birthday.
The list of all 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 as a police officer |
| Kidney failure | requiring dialysis |
| Major organ transplant | |
| Stroke | resulting in permanent symptoms |
| Terminal illness | with less than 12 months life expectancy |
| 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, (click the relevant button on the right). 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.
Your monthly premium depends on the amount of cover you choose, how long the plan is to run for (its "term" ), and whether critical illness cover is included. It also depends on your personal circumstances - your age, health, sex, and whether or not you smoke.
Example Illustrations
The tables below show example monthly premiums for plans with either reducing benefits (the Mortgage Protection Plan) or with constant benefits (the Level Term Assurance). The premiums are based on a sum assured of £100,000 over 25 years and assume you are in good health at the time of commencement and are accepted at standard rates.
(Death Benefit PLUS Critical Illness Cover)
| Age Next B'day | Mortgage Protection Plan (Decreasing Term Assurance) |
Level Term Assurance | ||||||
| Non-Smoker | Smoker | Non-Smoker | Smoker | |||||
| Female | Male | Female | Male | Female | Male | Female | Male | |
| 20 | £7.21 | £9.48 | £8.44 | £11.12 | £11.00 | £12.75 | £12.63 | £15.91 |
| 25 | £10.53 | £11.51 | £12.32 | £15.11 | £16.39 | £16.39 | £19.08 | £23.35 |
| 30 | £15.79 | £14.64 | £18.87 | £22.16 | £24.55 | £22.34 | £29.58 | £35.39 |
| 35 | £23.74 | £20.70 | £29.66 | £35.62 | £36.13 | £33.20 | £45.90 | £56.65 |
(Death Benefit only, no Critical Illness Cover)
| Age Next B'day | Mortgage Protection Plan (Decreasing Term Assurance) |
Level Term Assurance | ||||||
| Non-Smoker | Smoker | Non-Smoker | Smoker | |||||
| Female | Male | Female | Male | Female | Male | Female | Male | |
| 20 | £3.32 | £4.51 | £3.77 | £6.07 | £3.76 | £5.05 | £4.23 | £6.57 |
| 25 | £3.76 | £4.72 | £4.38 | £6.47 | £4.81 | £5.83 | £5.61 | £7.94 |
| 30 | £4.53 | £5.40 | £5.74 | £7.74 | £6.29 | £7.23 | £8.40 | £10.61 |
| 35 | £5.38 | £6.42 | £7.80 | £9.84 | £7.44 | £9.07 | £11.79 | £14.70 |
| 40 | £6.76 | £8.14 | £11.47 | £15.07 | £10.25 | £12.34 | £18.04 | £22.06 |
| 45 | £10.10 | £11.81 | £17.13 | £22.12 | £14.46 | £18.31 | £27.05 | £33.35 |
| 50 | £15.22 | £17.45 | £28.49 | £35.46 | £22.40 | £28.86 | £43.81 | £53.76 |
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.
The premium includes all costs for administration, underwriting and claims.
Critical illness benefit would be paid to you, and if this remains in your possession at your death, it will form part of your estate and be subject to Inheritance Tax. If you give any of this benefit away as a gift, and do not survive for at least seven years after making the gift, then on your death your estate may be charged some level of Inheritance Tax on those gifts, although there are some reliefs which may apply. Any death benefit would be paid into your estate, and therefore may be subject to inheritance tax. However, on joint life policies the death benefit is paid 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 plan is placed in Trust, or assigned (to a lender or another individual), it may not form part of your estate. Please click here for details of the Trust Deed we have available for our life assurance plans. Taxation treatment may be subject to future changes in legislation.
You should begin by obtaining a personal illustration detailing the cover you require and estimated cost. You can request an illustration by clicking here or telephone us and we will send you written illustrations showing all the options available to you. Once you are happy that the cover and term are satisfactory and have chosen which options you require, you should complete an application form.
Click here for an application form or telephone us. We will also send you a form with any personal illustrations. Fill in the application form, ensuring that you identify clearly who is to be covered and for what amounts, and return it to us. Please ensure all questions are fully answered to the best of your knowledge and belief. You should not assume that 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, and ask you when you want the plan to start.
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. After that period, you can cancel the plan at any time - although you will not get anything back as the plan has no value on cancellation.
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).
Someone will need to make a claim to us for payment of the death benefit, so make sure they are aware of the existence of the plan, its number and our contact details. If the plan is written in Trust using our standard trust wording, one of the other Trustees will make the claim and the Trustees will pay the benefit to the beneficiaries you or they have chosen.
You will need to make a claim to us for payment of the benefit; our contact details are here. If the plan is written in Trust using our standard trust wording, you or one of the other Trustees can make the claim and the Trustees will pay the benefit to you.
The policy document gives full details of the cover provided and includes all the definitions, exclusions, terms and conditions. Specimen copies are available by clicking the appropriate button on the right of this page should you wish to see this before making your decision. Additionally, the Consumer Financial Education Body (CFEB) provides useful financial information on its 'moneymadeclear' website www.moneymadeclear.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.
