In an ideal world, everyone who needs protection would own comprehensive policies - including life, critical illness cover (CIC) and income protection (IP) cover - but very few people actually have the money, knowledge or the inclination to buy these products. This has resulted in the current £2.3 trillion life assurance and £190 billion per annum income protection gap in the UK.
Real Life Cover is designed for those people. It combines seven protection covers, plus the added option of unemployment cover, in one package. Real Life Cover will protect people financially against almost any serious eventuality. It is designed to be simple and comprehensive. It is affordable, easy to set up and cuts down on a lot of the confusion that consumers experience when faced with an array of insurance choices and complex jargon.
The cover is made up of two same-size pots of money: the Life Fund and the Living Fund. The Life Fund covers those who die or are diagnosed with a terminal illness during the term of the policy. It will pay out a lump sum of the client’s choosing. This works exactly the same way as Life Cover and is separate to the Living Fund.
The Living Fund has four elements to it: income cover, critical illness cover, child and partner carer's cover, and recuperation cover. Your client can make as many claims as they need to, as long as there's still money left in the fund. Whenever the fund is paying out a monthly amount the premiums carry on being paid - it doesn't come out of the fund. The Life Fund is never affected by any claims made on the Living Fund, so the client still gets the full amount on death or terminal illness. Crucially, if a claim does not meet the definition for critical illness, the income claim will pay out instead, as long as the claimant cannot work.
