Back To Day 1
This means that you can make an insurance claim after just 30 or more consecutive days of loss of income through accident, sickness or unemployment. The claim will then be backdated to the first day of the 30.
For example, if your income or mortgage protection insurance claim starts on the 1st of June (i.e. the day you first sign up for Job-Seekers Allowance or the day your doctor declares you unfit to work) and you return to work on the 30th of June no benefit is payable. However, if this claim extends until the 1st of July or later (30 or more consecutive days) then you will receive benefit dating back to the first day of your claim (i.e. the 1st of June).
Back to Day 1 cover should not be confused with the initial exclusion period. For the first 90 days immediately after the start date of the policy you will not be able to make a claim for redundancy. This exclusion period may be waived if you transfer to us from an existing payment protection product.
Please see below for further explanation of policy terms:
Age banded - rates are set according to your age. Once the policy has been written, premiums will not increase according to age for the life of the policy.
Back to Day 1 - claims are paid backdated to the first day (the incident date).
Benefit - the amount payable under the policy. The maximum monthly benefit allowed under this insurance and any similar insurance is 75% of your net monthly income.
Benefit Period/s - the maximum number of monthly benefits that we would pay for any one claim. You may choose to be paid for up to 3, 6 or 12 months per claim. Please click here for further details.
Chronic Condition - a condition that occurs prior to the start date and that continues indefinitely, or cannot be cured or eradicated or that recurs or requires treatment.
Contract Worker - a person who is employed on a fixed term contract of employment. If you have been working for the same employer for at least six months and your contract has been renewed at least once, we will consider an unemployment claim only if your current contract is terminated prior to its expiry date. Monthly benefit will only be paid until that contract would have expired. However, if you have been working for the same employer for at least two years, we will consider any claim as if you had been in permanent employment.
Employment / Employed - undertaking any work (including self-employed work) in the UK of at least 16 hours a week and paying the correct National Insurance contributions. Please note: Your cover is completely portable between jobs. If you need to make a claim for unemployment you must have been in continuous work for 6 months prior to the claim. We will not count any break in your employment that is 2 weeks or less.
Excess Period - the period immediately after the incident date during which you will not be able to claim or be entitled to monthly benefits. This relates only to customers with full sick pay benefits from their employer.
Exclusion Period - the period of 90 days immediately after the policy start date, during which you will not be able to make a claim for Unemployment (does not apply to accident/sickness).
Incident Date - the date your Doctor confirms you are incapacitated or you become unemployed.
Income - the amount shown on your pay-slip from your employer including the average of any overtime, commission and/or bonus payments, or if self-employed this will mean the monthly average of your annual income as declared on your self-assessment return for the previous tax year, as confirmed by the HM Revenue & Customs. May include dividends so long as it is taken as salary and not share dividends.
Job Seekers Allowance - JSA is payable to unemployed persons who are available for and actively seeking work.
Joint Cover - we do not provide joint cover as premiums are calculated according to an individual's income, age and cover selection. If you have a joint mortgage, each of you can cover the maximum amount allowed.
Monthly Benefit - the amount payable under the policy. The maximum monthly benefit allowed under this insurance is 65% of your gross monthly income for Mortgage Protection Insurance and 50% of your gross monthly income for Income Protection Insurance (ASU).
Net Monthly Income - your monthly salary received in the 12 months prior to the start date after tax and National Insurance contributions have been deducted.
Permanent Resident in the UK - you must have completed 5 years residency and be in receipt of "permanent leave to remain" in the UK. In that time you must have either been in employment, self-employment, been a student, or been economically self-sufficient. If you are absent from the UK for more than 2 years you may lose your right to permanent residence.
Premium - the amount you must pay every month for cover under this policy, as documented on your policy schedule. If you are in receipt of monthly benefits under this policy you must continue to pay the premium as it falls due in order to ensure continuous cover under this policy.
Public Sector worker - termed public sector insurance for marketing purposes only. In the context of this insurance it is any full time worker (public or private) who would receive more than one month full pay whilst off sick.
Pre-Existing Medical Condition - a condition whether diagnosed or not, which you knew about or in our reasonable opinion should have known about, or for which you received treatment or counselling from any Doctor, prior to the start date of the policy.
Retirement Age - is considered to be 65 years of age irrespective of gender.
Self Employed - helping with, managing or carrying on a business in the UK and are liable to pay tax under schedule D Case, I, II, IV or V or the Income and Corporations Taxes Act 1988; or paying Class II National Insurance contributions; or a partner in a Partnership; or a person who exercises direct or indirect control over a company; or owns more than 10% of the issues share capital of the company. Working for a company and in any way connected with a person who has control over that company (for example, you are one of his or her family).
Statutory Sick Pay - SSP is payable for a maximum of 6 months, you may then receive Short Term Incapacity Benefit. Your insurance claim is unaffected by the change.
Transfer In - you change your existing insurance from another insurer to take up our income or mortgage protection policy.
UK - is England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.
Waiting Period - the time you will have to wait before you may receive any monthly benefit i.e. at least 30 consecutive days after the excess period has passed.
Working - working in the UK for 16 hours or more per week or on statutory maternity leave, adoption leave, or paternity leave. Contract workers please see above.