Questions and Answers
What is Sun Life Insurance?
What kind of insurance is this? What is 'term life insurance'?
Why should I consider Sun Life Insurance?
How is a claim made?
How much will Sun Life Insurance cost?
Do I need to have a medical?
What are the five eligibility questions?
When will my cover start?
What is the ‘Terminal Illness Benefit’ and when does it apply?
Does Sun Life Insurance have a cash-in value?
What about tax?
Can I change my mind?
Can I cancel the policy after the first 30 days?
What happens if the cash sum is not paid out during the term?
Can I take out another policy?
What is Sun Life Insurance?
Sun Life Insurance is a life insurance policy that covers you for a fixed period of time, for example the years when your children are at school. This is referred to as "the term". This means you can help your loved ones financially should you die or be diagnosed with a terminal illness during this time.
You simply choose a term of either 10, 15,20, 25 or 30 years which must end by the time you’re aged 70, and then you choose either how much you want to pay each month or how much you want to leave. Premiums start from £5 a month and you could leave up to £150,000 if you died or made a successful claim for terminal illness benefit during the term.
At the end of the term, if you’ve paid all your premiums and no claim has been made on your policy, unlike many insurers, we’ll automatically give you 15% of your premiums back.
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What kind of insurance is this? What is 'term life insurance'?
This is a life insurance policy which provides cover over a fixed term of your choice: 10, 15, 20, 25 or 30 years. You can choose any of these terms as long as it ends by the time you’re 70. The policy pays out a cash sum if you die, or if you are diagnosed with a terminal illness, during the term.
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Why should I consider Sun Life Insurance?
Coping with the death of a loved one is a distressing time. Sun Life Insurance is an easy way to help provide financial support for your family when they need it most.
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How is a claim made?
By applying for this policy you consent to AXA Wealth Ltd accessing your medical records if necessary in the event of a claim.
It is important that you keep your Policy Documents safe and let your next of kin know where to find them.
Death claims:
A claim can be made in writing to: The Manager, Department NPE/ Servicing, Sun Life Direct, PO Box 446, Bristol, BS99 1DR, or by telephone on 08458 35 36 37.
In the event of death, we will need:
- The Policy Schedule and Endorsements to be returned
- The name of the person making the claim and evidence of their entitlement to the policy proceeds
- The name and date of birth of the policyholder
- The original death certificate
- A copy of the policyholder’s Will if there is one.
Terminal illness claims:
If you are diagnosed with a terminal Illness please call us on 08458 35 36 37, or write to: The Manager, Department NPE/Servicing, Sun Life Direct, PO Box 446, Bristol, BS99 1DR, providing brief details of your illness.
From the date of a death or terminal illness claim to the date the payment is made we will add interest to the cash sum paid out. The rate of interest used to calculate this amount will typically be around 0.5% per annum lower than the Bank of England base rate.
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How much will Sun Life Insurance cost?
A monthly premium will be payable for your chosen term. The monthly premium – and the total of the premiums you will pay – depends on:
- The cash sum you choose
- The term you choose
- Your age, sex, and whether you smoke or not.
For example, someone paying a monthly premium of £10 over 15 years would pay a total of £1,790, unless they made a claim before the end of the term. The premiums and benefits for your policy will be shown on your Policy Schedule. When choosing your level of cover, please bear in mind that because the cash sum is fixed, over time, inflation will reduce its value.
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Do I need to have a medical?
No. There are no medical examinations needed to apply for this policy. You only need to answer 5 questions including some health questions and as long as you can answer ‘No’ to all of them, you are eligible for Sun Life Insurance.
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What are the five eligibility questions?
PLEASE NOTE YOU MUST READ THE GUIDANCE NOTES LISTED UNDER QUESTIONS 3, 4 AND 5 AND ANSWER ALL QUESTIONS HONESTLY AND ACCURATELY AS THIS COULD AFFECT THE PAYMENT OF BENEFITS OR INVALIDATE A CLAIM.
On questions 3, 4 and 5, if any of the medical conditions that we have asked you to tell us about in the guidance notes apply to you, please answer 'Yes' to that question.
If you have any further questions or would like to discuss a particular condition, please call us on 0800 904 7691 and we'll be happy to help.
The Five Questions
1. Are you a member of Her Majesty's Armed Forces, including Reservists and the Territorial Army?
2. Have you ever tested positive for HIV, Hepatitis B or C, or are you awaiting the results of such a test?
3. Have you ever been diagnosed with any of the following: cancer; diabetes; epilepsy; heart disease; kidney disorder; liver disorder; multiple sclerosis; paralysis; stroke; ulcerative colitis; Crohn's disease; motor neurone disease; depression or mental illness; alcohol or drug dependence?
Guidance notes
Cancer: You should tell us about Hodgkin’s disease, lymphoma or leukaemia, but you don’t need to tell us about any lumps, growths or moles that have been confirmed as benign by a doctor or specialist and have not required any follow up appointments.
Diabetes: You should tell us if you are on any medication to control your diabetes, but you don’t need to tell us if your diabetes is controlled by diet alone.
Epilepsy: You should tell us if you have had a fit within the past 18 months, but you don’t need to tell us if you haven’t had a fit for 18 months or longer.
Heart disease: You should tell us if you’ve had a heart attack, angina or heart surgery.
Kidney disorder: You don’t need to tell us if you have kidney stones or have had a single episode of urinary infection treated with antibiotics only.
Liver disorder: You should tell us if you have had cirrhosis, hepatitis, haemochromatosis, or cholangitis, but you don’t need to tell us about fatty liver if diagnosed by a hospital specialist and no follow up appointments are required.
Paralysis: You don’t need to tell us if this affects just one limb and was caused by trauma or an accident.
Depression or mental illness: You should tell us about illnesses which required hospital admission, but you don’t need to tell us if treated by counselling or medication only.
Drug dependence: You should tell us about any illegal drug use but you don’t need to tell us about over the counter or prescription drugs only.
4. Are you currently being investigated, or have you within the last two years been investigated or advised to seek medical opinion, for any of the following: heart related chest pain; raised cholesterol; raised blood pressure; irregular heartbeat; any breathing (respiratory) disorder; a lump, growth or mole; numbness, tremors or blurred vision; obesity?
Guidance notes
Raised cholesterol: You should tell us if you require current medication to control your cholesterol but you don’t need to tell us if your cholesterol is controlled by diet alone.
Raised blood pressure: You should tell us if you require current medication to control your blood pressure but you don’t need to tell us if your blood pressure is controlled by diet alone.
Any breathing (respiratory) disorder: You should tell us if you require steroid treatment or hospital admission, but you don’t need to tell us if controlled by the use of inhalers.
Lump, growth or mole: You don’t need to tell us about any lumps, growths or moles that have been confirmed as benign by a doctor or specialist and have not required any follow up appointments.
Numbness, tremor or blurred vision: You don’t need to tell us about any vision condition that was corrected by laser therapy or the wearing of glasses or use of contact lens.
5. Do you currently have any symptoms or concerns regarding your health that you intend seeking medical advice for in the next 12 months?
Guidance notes
You do not need to tell us about symptoms or concerns relating to allergies, anxiety, arthritis, broken bones, common cold, eczema, hay fever, influenza, irritable bowel syndrome (IBS), IVF treatment or fertility investigations, minor sports injuries, routine contraception, sprains or stress, uncomplicated pregnancy.
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When will my cover start?
Your cover will start as soon as your application for Sun Life Insurance has been accepted.
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What is the ‘Terminal Illness Benefit’ and when does it apply?
If you are diagnosed with a ‘terminal illness’ we will pay the cash sum early rather than on your death. This benefit doesn’t apply if the diagnosis is made in the final 12 months of the policy. Terminal illness is a definite diagnosis, by the attending Consultant, of an illness that satisfies both of the following:
- The illness either has no known cure or has progressed to the point where it cannot be cured; and
- In the opinion of the attending Consultant, the illness is expected to lead to death within 12 months.
All diagnoses and medical opinions must be given by a medical specialist who:
- Is a specialist Consultant in an area of medicine appropriate to the cause of the claim, at a hospital in the UK; and
- Is acceptable to our Chief Medical Officer.
AXA Wealth Ltd reserves the right to challenge the diagnosis of a terminal illness.
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Does Sun Life Insurance have a cash-in value?
No, the policy has no cash-in value at any time. So if you cancel or stop paying your premiums at any time, your cover will end and you won’t get anything back. You need to feel comfortable you can keep up the premiums you choose when you take out a policy. However, if all premiums have been paid and no claim has been made at the end of the term, we will automatically return 15% of the premiums paid to you.
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What about tax?
The fund in which your premiums are invested is subject to tax on investment income and capital gains, and this tax is deducted from the fund by AXA Wealth Ltd.
Any money paid as a result of a death or terminal illness claim will currently not be subject to capital gains tax or income tax.
The amount paid on your death will normally form part of your estate so may be subject to inheritance tax, unless you write the policy subject to an appropriate trust. Any amount paid out in relation to a terminal Illness will currently not be subject to inheritance tax at the time of payment but may be subject to inheritance tax on your death.
Tax information is based on our interpretation of current law and HM Revenue & Customs practice. How taxation could affect you will depend on your individual circumstances. Tax legislation may change in the future.
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Can I change my mind?
You can change your mind within 30 days from when you receive the “Your right to change your mind” form. Complete and return the form within 30 days and we will refund any premiums you have paid.
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Can I cancel the policy after the first 30 days?
After the 30 day period, you may cancel the policy at any time by notifying Sun Life Direct in writing. If you do cancel, the policy will end and you won’t get anything back.
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What happens if the cash sum is not paid out during the term?
At the end of the term, provided you’ve paid all the premiums when due and the cash sum has not been paid, we’ll pay an amount equal to 15% of the premiums paid. You don’t need to contact us in order to receive this – we’ll pay the amount into the same bank or building society account that we received your Direct Debit payments from.
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Can I take out another policy?
Yes you can have more than one Sun Life Insurance policy provided you don’t exceed the £150,000 maximum cash sum for all policies combined.
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