“Fortis Life Insurance” was launched in 2008 in UK. Now it is known as “Ageas Protect”, one of subsidiaries of Ageas. It is a leading provider in UK of Personal and Commercial Lines insurance solutions. “Ageas” consist of nine businesses, buti its main market is general and life insurance market. Moreover, in 2009 it had 7,6 million clients and hired over 4,000 employees. “Ageas” has three main propositions for its clients: YourLife Plan, Low Start and Real Life Cover.
YourLife Plan offers many possibilities for its clients. The insurance policy can be chosen from term assurance, critical illnesses cover, family income benefit and income protection benefit. It is possible to choose just one of these options or combine them. Usually to start YourLife plan the person will need to choose either the sum assured or monthly benefit that are going to be paid out in case of successful claim. Moreover, the term of the cover and how many pethe are chosen.
Low Start plan’s main idea is the proposition to pay lower premiums at the beggining and after some time to increase them gradually. The total premiums paid will be higher compared to when traditional YourLifePlan is chosen, however the increase of premiums is strictly indicated in the contract. Thus, it leaves no place for the provider to increase premiums more than initially agreed. An individual can change the plan to level premiums by reducing first agreed amount of cover.
It is possible to choose Term Assurance and Critical Illness Low Start plans. Term Assurance plan starts after deciding three key components: the amount of the cover, the term of the cover and whether one or two persons are covered with insurance policy. Low Start with Term Assurance is only available with chosen level sum assured. That is the difference from Low Start with Critical Illnesses as there only the term of the cover and the amount of insured persons are chosen by person before the contract.
Real Life cover combines life insurance, income protection benefit and limited critical illnesses cover. It consists of three parts: Life Cover, Living Cover and Optional Unemployment or Extended Carer‘s Cover. First of all, the individual decides how much of Life Cover he needs and this sum is paid out in case of death or terminal illness. It is possible to choose to increase this cover each year. However, the premiums will also increase.
Living Cover consists of income protection, critical illness cover, recuperation cover, child and partner carer‘s cover. So called Living Fund is set up to be of equal size to chosen Life Cover. Each time the benefit is paid, Living Fund value decreases by the same amount. It is not possible to pay into Living Fund or cash-in after the term of insurance is over.
Moreover, it is also possible to add Optional Unemployment and Extended Carer‘s cover benefits. The premiums will increase, however, the benefits paid after the claims does not decrease Living Fund value. However, these kind of benefits are not advised to be chosen by self-employed workers as benefits are paid only if the business stops or is very near to doing that.