Zurich Protection Continuation & Guaranteed Insurability Options 

Protection Continuation Option is an optional added benefit, that gives a client the option to extend the term of a plan, without any further medical evidence.

Guaranteed Insurability Option is an automatic additional benefit that gives a client the option to increase cover, without any further medical evidence, following certain, specific special events.

Zurich has two types of Protection Continuation Options on our Guaranteed Term policies – you must check the policy document to determine whether the policy has a traditional continuation option or a rolling conversion option. This is based on when the policy started.

You should refer to the policy document for all elements of your cover. This benefit is applicable for Life, Serious Illness and Cancer Cover.

Traditional Continuation Option Policies that have a risk commencement date before late 2014 have what we call a ‘traditional’ continuation option. This means a client can only exercise the option 90 days before or after the end of the policy term. This option, if exercised, will not be available on the new policy.

Rolling Continuation Option Zurich launched a rolling Continuation option in late 2014. This means that if a client has this option they do not need to wait until the end of the policy to extend the term. They also continue to have the continuation option on the new policy.

Continuation/Conversion Option on Guaranteed Mortgage Protection In 2019, Zurich launched a rolling Protection Continuation/ Conversion Option for Guaranteed Mortgage Protection policies, input on or after August of that year. This option allows a client to extend their cover at any stage or convert their mortgage protection policy to a Guaranteed Term Protection policy. The option will also be available on the new policy

Cessation of original plan Zurich will write to customers 3 months before the end of their policy to highlight if they have a continuation/conversion option. Please note that, regardless of the type of option that they have, once their policy has ceased they have 90 days to exercise the continuation/conversion option. However they are not on cover until the new policy is issued by Zurich i.e. it is not assumed that they will extend or convert their existing plan.

 

Terms and Conditions

• Rates will be as per the client’s age at the time of conversion, and the premium will be recalculated as per Zurich’s premium rates at the time of the exercise of the option.
• The same underwriting decision and smoker rates will apply as per the original policy. Any special terms will also continue to apply on the new policy.
• If a client is looking for a change to smoker status / previous loading, then a new application with full underwriting will be required.
• Discounts are not available on policies arising from the exercise of the continuation/conversion option.
• The new policy will have the policy definitions as per Zurich’s offering at the time of continuation/conversion.
• The term available on the new plan is based on the policy document of the existing plan.

In general, the following applies – you should check your policy document for exact details, or ask your financial adviser. Generally this is max to age 85 for life cover (newer policies input from August 2019 will allow continuation/ conversion to age 90) with a maximum term of 40 years.

Generally it is max to age 75 if there is Serious Illness on the policy, or Life and Serious Illness.

• A Single Life policy can only convert to a Single Life policy. If the basis of cover of this policy is Joint Life or Dual Life, that of the replacement policy must be the same basis of cover, or you may elect to remove a Life Insured from the policy and change the basis of Cover to Single Life.
• The replacement policy must commence on the first day of the month following the expiry of the original plan. Pension Term Conversion Note that for the exercise of the option on a Personal Pension Term or Executive Pension Term policy, up-to-date information will be required. This includes company details, information about your salary etc. This Information is required for Revenue and will not impact the underwriting decision. A Pension Term policy can be converted to a regular Guaranteed Term Protection Policy if a client leaves service, or with the company’s approval

What is needed to exercise a client’s Continuation/ Conversion Option?

You will need to complete the dedicated application form for Protection Continuation/Conversion & Guaranteed Insurability Options.

 

The Guaranteed Insurability Option is an option to increase cover and the sum insured on a policy without having to provide further medical evidence after certain life events.

The events which are covered will be provided in the policy document. In order to use the option it will need to be exercised within 6 months of the event. A new policy will be issued for the additional sum insured and this will run in conjunction with the original policy

The term on this new policy cannot exceed the term of the original policy. There are limits on the size of the increase in cover available. The details of these limits are specified in the policy document of the original plan. Discounts are not available on policies arising from the exercise of the Guaranteed Insurability Option. To apply you will need to complete the dedicated application form for Protection Continuation/Conversion & Guaranteed Insurability Options. You will also need evidence of the event, for example a birth certificate if the event is the birth of a child.

 

Zurich Life Assurance plc Zurich Life Client Centre
Zurich House, Frascati Road, Blackrock, Co. Dublin, A94 X9Y3, Ireland.
Telephone: 01 283 1301 Fax: 01 283 1578 Website: www.zurich.ie
Zurich Life Assurance plc is regulated by the Central Bank of Ireland.

Intended for distribution within the Republic of Ireland

 

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