Lloyds TSB is a retail bank in UK, which was established when Lloyds bank merged with TSB group in 1995. It is planned that bank will be renamed to Lloyds Bank once again in 2013. This banking group has more than 45,000 employees and its main businesses are banking and insurance services. Lloyds TSB provides its clients with a lot of different insurance options: car, travel, home, pet or caravan insurance services. As for life insurance, TSB offers few options that can be chosen: life cover, lifetime cover, critical illness cover, income and mortgage protections. None of these policies have cash in value. This means that if the person terminates the policy he gains nothing from the premiums he has paid.
Lloyds provide its clients with life cover plan, which pays out a lump sum of money in case the person dies or is diagnosed with a terminal illness. The person can also choose that the amount assured is paid monthly instead of one payment. Moreover, Lloyds provides an examples how much its life insurance can cost to its clients.
Let’s assume that the person wants £100,000 of cover, which should last for twenty. For an average male, who is non-smoker and 35 years old, the premiums can be around £7,5 a month. As for female, who shares the same conditions as male in previous example, the premiums can be expected to be around £6,4 a month for life and critical illness covers together. Thus, main advantage of Lloyds’ insurance is that these services are not expensive and affordable to many people.
Lifetime cover provided of Lloyds is set to last for all the life of the person. It pays out if the person dies. It is also possible to choose joint lifetime cover. In this case, Lloyds uses last death rule: the sum assured pays out then both of the partners die. As this policy pays out only after second partner dies, it usually is used for covering funeral and other expenses associated with death in order for dependents not to have financial difficulties.
Usually five main reasons why claims are made when individuals have critical illness cover: cancer, stroke, heart related problems, multiple sclerosis and children’s claims. Critical illness cover is designed to pay out if the person is diagnosed with one of the critical illness from the list provided by Lloyds TSB. It is always important to look through this list in order to know from what illnesses the person is insured. Moreover, the policy includes children’s critical insurance at no additional costs.
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Lloyds TSB also offers various mortgage protection plans for its clients: a) accident, sickness and unemployment cover, b) mortgage payment protection, c) loan protection cover and d) mortgage protection/decreasing term assurance services. First three cover options guarantee that the person is insured that if he is unable to work because of covered illness or injury, his loan or mortgage payments are covered by Lloyds TSB.
As for mortgage protection cover also known as decreasing term assurance, this plan is designed to pay out lump sum of money in case the person dies or becomes terminally ill. This sum of money usually is set to be equal to the value of mortgage or loan. As for any other decreasing term insurance policies, the amount of cover decreases over time. Moreover, it is important to remember that if the person has higher interest rate than it is assumed in the policy or if the person changes the conditions of the mortgage, the amount of cover may not be high enough to cover all the sum of the mortgage.
The person is insured that if he cannot work for indicated amount of time because of sickness or injury which is covered by the plan, he will be paid regular monthly income until he is able to work again. For small additional costs premium protection/waiver of premiums benefit can be used if the person is unable to continue working because of illness or injury, which is protected by this plan.
Lloyds provides a list of information that will be asked before giving an insurance quote to a client. First of all, the person will need to provide info whether he has any other protection covers. Moreover, medical history (including treatments and dates) should be provided alongside the personal information such as height, weight and if the person drinks or smokes.
Furthermore, Lloyds wants information on family’s medical history, whether the person currently takes any medicines and the name, contact details of his doctor. The person will also be asked whether he has lived abroad, practices any hazardous and dangerous activities that can increase the risk of death.