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Ordinary Life Insurance |
Real Life Cover |
John takes out £250,000 of Real Life Cover or ordinary life insurance |
John has £250,000 of life cover |
John has £250,000 of life cover and a £250,000 Living Fund |
At 42 John develops cancer |
He can't claim anything |
His Living Fund pays him a lump sum of £30,000 - 12% of his sum assured |
He has to take 8 months off work to recover |
John can't claim anything and needs to keep paying his premiums |
After 2 months off work his Living Fund pays him £2,500 a month - 1% of his sum assured. We pay his premiums until he returns
to work |
John has a car accident and has to take time off work |
He can't claim anything and still needs to pay his premiums |
After 2 months his Living Fund pays him £2,500 a month - 1% of his sum assured. He gets this for 7 months. Until he returns to work, we pay his premiums |
John's doctor recommends specialist physiotherapy |
John has to wait for physiotherapy. So it's 6 months until he's back to work |
His Living Fund pays £2,500 for physio. He could have had up to £7,500 - 3% of his sum assured. He's back to work in 3 months |
John has a severe stroke |
He can't claim anything |
His Living Fund pays him a lump sum of £30,000 - 12% of his sum assured |
Since his stroke John has been unable to work |
John can't claim anything and still has to pay his premiums |
After 2 months, his Living Fund starts paying him £2,500 a month. There is £155,000 in his Fund, enough for 5 years and 2 months of payments |
John dies |
His insurer pays his family £250,000 |
Even though his Living Fund had run out, we continued to pay his premiums - so we pay his family £250,000 life insurance |
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With ordinary life insurance John's family have received £250,000. |
With Real Life Cover John and his family have received £500,000 plus 75 months worth of premiums paid. |