With the advances in medical science we are all living longer. For example, people are now just as likely to survive Cancer as die from it. But with this longevity comes the greater risk of us contracting a debilitating disease and being unable to look after ourselves in later life
To meet this changing need within the Protection market Vitality has launched a new Life Assurance plan called Lifestyle Care Cover. The plan pays out on death but also allows cover to be drawn down earlier if you suffer a debilitating disease, and / or can no longer look after yourself
You select a level of cover to be paid out in the event of your death, then select an amount of lifestyle cover to be paid earlier if the events described above occur. In the event of you suffering Alzheimer's, Dementia or Parkinson's the plan will pay out 20% of the lifestyle cover. If your condition deteriorates and you are unable to perform basic Activities of Daily Living (ADLs), the remainder of the lifestyle cover becomes payable. Any remaining cover is paid out on your death
Here's an example of how it works : You select £100,000 life cover and then select £50,000 of this as lifestyle cover to be available in case you need to pay for support in later life. Unfortunately you develop Dementia with permanent symptoms, so the policy pays out £10,000 to help make life easier for you and your family financially. Later the condition deteriorates and you are no longer able to perform ADLs such as washing, dressing, feeding. The policy would then pay out £40,000 to perhaps be used to make adjustments to your home, or pay for external care. Sadly a few years later you pass away and the other £50,000 is paid out to your dependents on your death. For a 45 year old, the cost of this cover could be less than £50 per month
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If you would like more information on Vitality's Lifestyle Care Cover please contact your Financial Adviser. If you do not have a Financial Adviser please contact Simon Cardozo on 07917 503058, or email him at [email protected] and he will help you find a suitable local qualified one.
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