NB the Sections in BLUE Type Relate Specifically to REBROKED Cases

NB the sections in BLUE type relate specifically to REBROKED cases – they’re highlighted in blue to make them easier to delete for those cases which are not rebrokes.

Name Address Address Address Address

Dear Name

Following our recent discussions and completion of a Personal Financial Planning Profile on date, I am writing to detail the recommendations which I feel are appropriate to your current circumstances. We agreed that your objective was to set up a life assurance policy to protect the mortgage on your recent/proposed property purchase.

You have effected a repayment mortgage for £______with Lender over ______years. I therefore recommend that you implement a Decreasing Term Assurance Policy written over a ___ year term with a decreasing sum assured of £Amount on a single life/joint life first death basis as this should be sufficient to repay the loan if you / either of you were to die. I have also recommended that you have Waiver of Premium benefit as this would pay the premiums for you if you / either of you were to be unable to do your own job for long periods of time due to medical reasons. You have accepted this option / You have declined this option as you wish to keep costs to a minimum.

You accepted my recommendation that Critical Illness Cover should be considered as you may not be able to make the monthly mortgage repayments if either of you were to suffer a critical illness. The decreasing sum assured of £Amount can be provided by a guaranteed/reviewable premium of £Amount. A reviewable premium means that the premium will increase at a future date, whereas a guaranteed premium does not change through the term of the policy. You felt that a guaranteed / reviewable premium best suited your requirements because…….(e.g. known costs throughout term / cheaper now when income is tight) If the selected policy is not the cheapest, explain why (e.g. client preferred guaranteed rates / selected policy gives wider cover / better definitions etc)

If the case is a rebroke, include a paragraph with details of the existing policy/policies and an explanation why it/they are being replaced - often for cost reasons but not exclusively e.g.;- I confirmed that, due to the continuing change in mortality rates, it is now possible to obtain higher levels of cover for the same monthly premium that you are currently paying to Company, over a slightly longer remaining term……………….The remaining term on your existing policy no longer meets your needs…………………..Your present policy contains reviewable premiums / is shortly due for review / has been reviewed and you would prefer a “guaranteed” policy whereby the premiums are not subject to reviews. ……..……….The lives assured on the policy no longer match your requirements.

If a rebroke also ensure that you have compared policy definitions of Critical Illnesses between the existing and new policies and include a paragraph outlining this aspect to the client e.g; As you know the definitions of various Critical Illnesses covered by your existing policy and the new policy may / do vary. We have reviewed this aspect together and as we have discussed you are satisfied that the cover afforded by the new policy meets your requirements. (Note - if there are any material differences in cover (either better or worse) that may be of particular relevance to any client, you should include a note accordingly).

We determined that you felt you could afford the premiums having considered both your income and expenditure. Temporary assurance policies do not acquire a maturity value or a surrender value, they simply pay a lump sum if a valid claim occurs. At the end of the policy term, or if premiums cease before that date, the policy will simply expire.

The total sum of the monthly premiums payable over the life of the policy is £XYZ (representing £AB per month x12 months x 5 / 10 / 15 / 20 / 25 years). Do note however that you are able to cancel the cover provided by the policy at any time should you choose, and future premiums will cease.

If you do not maintain the repayments on your mortgage or change the mortgage to interest only the sum assured will continue to decrease and will not reflect the outstanding loan.

Your contract has reviewable premiums and / or includes the benefit of increasing / indexed cover, which means that over the years the monthly premiums and thus the total premiums payable will increase, but at this stage it is not possible to predict what the final total may be.

It is very important that you appreciate as we discussed that a claim under any Critical Illness section will only be considered if the nature of the illness meets the criteria as defined in the policy conditions. Please do contact me if, having studied again the terms and conditions of the policy, you are not clear on any aspect of this, including any restrictions for example on geographical limits, death soon after diagnosis etc.

With regard to medical information, as I mentioned to you it is very important that full information is disclosed to the insurer at the outset. If this is not done, and something subsequently comes to light, a claim may be refused. If you do recall any further information that should have been given please do let me, or the insurer if you prefer, know straight away.

The 'key features document' provides a great deal of information concerning the terms under which this policy will be issued. The commission payable is shown on your personalised illustration that we have already discussed. You should read these documents carefully and contact me if you have any queries concerning them. I would like to draw your particular attention to the sections on charges and cancellation.

If the case is a rebroke, include the following paragraph;- It is important to note that, at this stage, we are merely applying for your replacement policy to be underwritten to ensure that Product Provider confirms the terms of cover for you. In this respect, you should not cancel payments to your existing plan until I have advised you of product Provider’s acceptance of terms.

If the client has not signed a proposal or input form, include a hard copy of the electronic data input, with the following sentence;- I also enclose a copy of the information supplied to the insurer based on the details you gave me. It is essential the particulars are correct as they form the basis of the contract, therefore please check the form carefully and advise me as soon as possible of any discrepancies. Please note it is important that the insurer is advised if any changes occur before the policy commences.

Product Provider were selected as being a competitive provider via the exchange on the basis of premium and guaranteed / reviewable cover. Product Provider is also a financially secure company with many years' experience in providing protection policies of this type.

The illustration that I gave you indicates the normal terms Product Provider would offer. They will confirm their acceptance of your proposal by issuing an acceptance letter. Sometimes during underwriting it is possible that the premium may be changed or a restriction placed on the level of cover or range of illnesses covered. When you receive this acceptance please check this carefully and contact me straight away if you feel there is anything that is not clearly self explanatory.

The initial commission paid to NAME OF ALIFA MEMBER will be £XXX followed by £XXX per month from month XX. This is shown on your personalised illustration.

For my records please sign the copy letter attached and return it to me in the envelope provided.

Yours sincerely,

Adviser’s Name Title

SIGNED: Client’s Name (s)