Our Providers
The Financial Conduct Authority is the independent financial services regulator. It requires us, The Shepherds Friendly Society Ltd, to give you this important information to help you to decide whether our Income Protection (Simplified Application) plan 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.
To provide:
Shepherds Friendly Income Protection (Simplified Application) is primarily designed to provide a short-term monthly benefit to the self-employed and for anyone who does not receive an income or only a limited income from their employer in the event they are unable to work due to illness or injury.
The aim of the plan is to replace up to 70% of your pre-incapacity income in the event you become unable to work because of an illness or injury.
To be eligible to apply for a plan you must be between 16 and 60 years of age and employed or self-employed.
The maximum term of the Income Protection (Simplified Application) plan is up to your 70th birthday. The minimum term of the plan is five years.
You must be subject to UK taxation and hold a UK Bank or Building Society account.
You must be resident and have been resident in the UK for at least 36 months prior to the date of signing the application.
United Kingdom - For the purposes of the plan the United Kingdom includes the Isle of Man. Please note different tax rules may apply if you are a resident of the Isle of Man.
You must be registered and have been registered with a UK Medical Practice for at least 36 months prior to the date of signing the application.
We will pay benefits up to the maximum level of the lower of 70% of your annual income or £33,600. The minimum level of benefits is determined by the requirement to have a minimum monthly premium of £5.
If self-employed your income is based on the average of the last three years' annual net profit.
We will not pay any benefits under this plan if your inability to work is related to a pre-existing medical condition. This is:
This will apply until:
The benefit will be paid after the expiry of your chosen Waiting Period and once our claim has been accepted. The Waiting Period is the length of time from when you become unfit for work and totally unable to carry out your Own Occupation to the date when we start to pay sickness benefit.
We will stop making sickness benefit payments on the first of any of the following:
The premium is payable monthly in advance by Direct Debit.
Between certain ages, premiums are increased each year on the anniversary of the plan in line with the published rate table. Rates vary depending on your level of benefit, age and your chosen Waiting Period.
Premiums are also reviewable at our discretion during the lifetime of the Income Protection (Simplified Application) plan. We do not expect this to happen very often, but we reserve the right to do this.
Waiver of premium is included in the plan. Once we have accepted your claim, we will not collect any premiums for the period commencing 4 weeks after the expiry of the Waiting Period until your claim ends.
With this option, the benefits and premiums will automatically increase in line with the Retail Price Index (RPI) annually. Indexation will be applied annually once the plan has been running for at least a year. We will remind you of the increase before it comes into force. The increase will apply to the whole premium, including all options and benefits. Indexation can only be applied for at the beginning of the plan.
You should review your cover against your income on a regular basis to ensure that the plan still meets your needs.
If your circumstances change, you must tell us. For example; if your earnings reduce or increase, you become unemployed, if you change employment, or change how you work (e.g. employed to self-employed), you must let us know by contacting our Member Services team.
If you become unemployed, you will only be entitled to House Persons Benefit (subject to meeting the criteria), which is restricted up to a maximum benefit level of £1,400 per month payable for a maximum period of 12 months. This is a reduced benefit for a reduced payment term. (See our terms and conditions for details).
You may apply to suspend cover and premium payments under your plan for a minimum continuous period of three months and up to a maximum continuous period of 24 months. This is known as a 'Career Break'.
You will not be able to make a claim or request any changes to your plan during a Career Break. (See our Terms and Conditions for details).
Please be aware that you are responsible for making sure that you keep your payments up to date.
If you do not pay your premiums:
The plan has no cash in value.
Once we have received and processed your application we will send you the plan documents. Included with these will be a "right to cancel" notice.
If you are not happy that you have done the right thing then just return this notice to us within 30 days and we will then refund any premiums paid, unless you have been paid Benefits during this period.
You can cancel any time after the first 30 days, but you will not be refunded any premiums you have paid.
If you wish to cancel the plan, please write to Shepherds Friendly at the address shown in this document.
There are certain circumstances where we will not pay out on a claim. For example, we will not pay benefit for an injury or illness caused by War, an invasion, hostilities, cosmetic surgery for non-medical reasons, or by taking part in a dangerous activity and failing to use the correct equipment or undertaking and utilising appropriate training.
For a full list, please see our Terms and Conditions.
Under current legislation and HMRC practice, benefits payable under this plan are normally free from Income Tax and Capital Gains Tax for UK residents. The tax treatment of the plan may change in the future.
Please note: Different tax rules may apply if you are resident in the Isle of Man.
As soon as you think you may need to make a claim please contact us by phone on 0800 526 249. The Claims team will explain the claims process and send you a claim form. At this point we may ask for evidence of your earnings and your health.
Please notify us as soon as possible if you have an illness or injury which you think might lead to a claim in due course.
If you are late in submitting a claim we will make the first payment as soon as we can, but we will not backdate it to the start of the illness. However, we will not apply this condition if your incapacity has physically prevented you from meeting it or if you have been confined in hospital.
Please also remember that the waiting period commences from the first date of your illness/incapacity and not from the date we receive your claim form.
Your financial adviser (if you have one) will give you details about the cost of advice. The amount will depend on how much you are paying each month and the length of your Income Protection (Simplified Application).
When your Income Protection (Simplified Application) plan starts we will send you the full Terms and Conditions; these explain how Income Protection (Simplified Application) works. If you would like to see these terms and conditions before you apply please contact us:
Phone: 0800 526 249
Email: info@shepherdsfriendly.co.uk
Web: www.shepherdsfriendly.co.uk
Claims - to make a claim please contact us by phone on 0800 526 249 and ask for the Claims department. They will explain the claims process and send out a claim form.
Cancellation Rights - after we accept your application, we will send you a notice of your right to cancel. You will then have 30 days to change your mind and leave the plan.
Complaints - if you want to make a complaint; please contact:
Compliance Officer, Shepherds Friendly, Haw Bank House, High Street, Cheadle, Cheshire SK8 1AL. Phone: 0161 428 1212 Email: complaints@shepherdsfriendly.co.uk
If we don't deal with your complaint to your satisfaction you can complain to the: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR. Phone: 0845 080 1800
Making a complaint will not affect your right to take legal action.
Financial Services Compensation Scheme (FSCS) - we are covered by the FSCS, which means you may be entitled to compensation under the terms of the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.
For long term plans such as this the scheme covers 100% of the claim with no upper limit. Further information about the scheme is available from the FSCS - Visit: www.fscs.org.uk or call: 0800 678 1100
Financial Crime - we will take measures to protect members against financial crime. We may need proof of identification on application or claim and if required we may gather this proof by electronic means, for example checking Electoral Registers.
Tax - information that we provide in this leaflet about taxes in the UK is based on our understanding of current laws and HM Revenue and Customs practice which may change in the future.
The Data Protection Act - you have the right to ask to see any personal information which we may hold about you and to have any mistakes in this information corrected. You can do this by writing to the data protection officer at our head office. There may be a charge for this.
Law - the plan is governed by the laws of England and Wales.
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