Bright Grey was founded in 2003 by The Royal Group. It offers to its clients many various insurance services such as life insurance, critical illness cover, income protection, payment cover and various combinations of these policies. All of the insurance vehicles are divided by the company into two main groups: personal protection and lifestyle protection.
Personal protection offered by Bright Grey mainly includes five options: life cover, critical illness cover, life or critical illness cover, income cover for sickness and payment cover for sickness. The first one, life cover pays out if the person dies or is diagnosed with a terminal illness before the last 12 months of the term of the insurance policy. It is possible to choose what kind of benefit can be received as a sum assured: fixed, decreasing, increasing lump sum or monthly level or monthly increasing income. The term of insurance policy that can be chosen varies from 1 to 40 years. It is possible to choose either single or joint life insurance.
As for the critical illness cover, it will pay out if the person is diagnosed with one of the covered illnesses or if he becomes totally and permanently disabled. The policy insures from such illnesses as cancer, Alzheimer and Parkinson diseases, kidney or liver failure, blindness and many others. In total there are 39 of covered sicknesses. It is always important to look through what is insured and what is not before the insurance contract is underwritten. The term of this protection option can vary from 5 to 40 years.
However, it is important to notice that if only critical illness cover is chosen, then the person must survive after the diagnosis of such illness for more than 14 days. If he dies within 14 days after the critical illness is diagnosed, then only £100 will be paid out to the dependents of the insured person. Thus, so called life or critical insurance cover may seem as a wiser option to be chosen as it combines the features of both life and critical illness policies. It pays out if the person dies, is diagnosed with a terminal illness before the last year of the term of the insurance, becomes sick with one of the critical illnesses covered by Bright Grey or becomes permanently disabled. The term of the insurance can be chosen to be from 1 to 40 years.
Moreover, if the critical illness cover or life or critical illness cover policies are chosen, total permanent disability and children critical illness cover benefits are added. Total permanent disability pays out if the person becomes unable to perform specified working or living tasks. For persons who are under 65 it will be required that they would be unable two perform at least two of these tasks: walking, lifting, using a pen, pencil or keyboard, vision, speech or hearing. For those who are over 65 when the claim is made, the policy will pay out if the person is unable to perform at least 3 of so called living tasks: washing, transferring, dressing, feeding, mobility or continence.
Child critical illness benefit is automatically included. It covers the child from 30 days old to when he reaches the age of 18 years. It is possible to claim for 50% of the sum assured agreed in the life insurance contract and the maximum amount of benefit can be up to £20,000.
The last two options include income and payment cover for the sicknesses. Income cover will pay out in case the person is unable to perform at least two of these 6 tasks: walking, lifting, using a pen, pencil or keyboard, vision, speech or hearing. The same definition is valid for those who are under 65 and takes out payment cover of sickness. For those who choose payment cover and are over 65 when making a claim, in order for the policy to pay out they must be unable to perform 3 of six living tasks: washing, transferring, dressing, feeding, mobility or continence. Moreover, for both of these policies, a deferred period has to be chosen after which the payments will be started to be made. It is possible to choose from 4, 13, 26 or 52 weeks. The term of the cover can be from 5 to 40 years.
For income protection cover the maximum claimable monthly benefit is equal to 50% of monthly earnings. However, this benefit cannot exceed £12,500 a month. If the person does not work he can claim for monthly benefit of maximum £1,400. The policy will continue to pay out until the person is able to work once again, he no longer meets the Bright Grey’s definition of incapacity, until the end of the policy or if he dies.
The main aim when choosing this plan is the protection of the financial situation of other family members in case the person dies or is diagnosed with a critical illness. It is possible to choose from two options : life cover and life or critical insurance cover. Life cover pays out in case the person dies or is diagnosed with a terminal illness before the last 12 months of the term of the insurance policy. This policy will not pay out if the person is diagnosed with a terminal illness within the last 12 months of the term of the insurance or if he commits suicide within the first 12 months of the cover.
The life or critical illness cover pays out if the person dies, is diagnosed with a terminal or a critical illness. The restriction is that terminal illness must be diagnosed before the last year of the insurance policy. Moreover, the policy will not pay out if the person commits suicide in the first 12 months when cover starts or if critical illness may be caused by these factors: abuse of alcohol or drugs, self-inflicted injury, taking part in a criminal act, war.
For both of these lifestyle protection policies the sum of cover can also be chosen to be increasing or decreasing. If the person chooses increasing cover, then the sum assured increases with the same percentage as Retail Price Index (RPI). However, this increase is limited to be from 2% to 10% each year. If the cover is chosen as decreasing one, then the cover will decrease each month in line with a repayment of mortgage which has an yearly interest rate of 7%.