The company was founded in 2011 as a merger between three companies: “Friends Provident” and two life assurance businesses from “AXA” and “BUPA”. The company began trading just last year but already has a lot of customers because all three companies were well know and had strong market presence before the merger. The company is headquartered in London and has 5 million customers and 4000 employees worldwide. “Friends Life” operates in eight countries around the world: United Kingdom, Germany, Luxemburg, United Arab Emirates, Singapore, Hon Kong, Malaysia and the Isle of Man. At the end of last year the company was responsible for managing £111 billion. According to the most recent research “Friends Life” is the 5th biggest Life and Pensions Company in United Kingdom. The company offers three different life insurance products for private customers: Life Cover, Critical Illness Cover and Income Protection Cover. In addition to this, the company also provides two life insurance services for people that have their own business: Key Person Protection and Partnership Protection.
Life Cover is designed in order to provide the dependents of the insured person with a lump cash sum of money after the death of the insured person or diagnosis with the terminal illness. The cover and the premiums of this life insurance product never change. The policy can be written on a single or joint life basis. The dependents can use the money according to their needs. The lump sum can be used to pay immediate expenses or as a long-term support for the budged of the family. The insured person can use the money to cover his funeral costs, leave the money to his family members as a gift or use the money for the repayment of the mortgage.
Sometimes an illness can be a more financially devastating situation than an unexpected death. Imagine a situation where the person gets sick with an advanced form of lung cancer. The treatment of this illness is extremely important and while the person is being treated he cannot work. This situation creates a great pressure on the budget of the family. However, when the person has critical illness cover he can be calm knowing that the insurance provider will help him by paying a lump sum of money. Just like Life Cover Critical Illness Cover can be written on a single and joint life basis.
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Income Protection Cover is designed to pay a monthly periodic sum of money if the insured person was forced to leave his work because of an accident or an injury. The money received from the insurance company can be used to cover the medical bills or to pay for everyday expenses. Income Protection Benefit is a very useful life insurance product because it allows the person to take rest from his job and take time to recover from the illness. The main principle of this product is that it pays out periodic income that can be used in the same way like the salary of the person. The individual is allowed to choose the deferred period of this product. The longer is the deferred period the lower is the price of the premiums.
A key person is an individual that is a part of a business and has competence and characteristics that no one else does. The loss of such person can be a big disaster to the business. After serious illnesses these people may need time to recuperate and some of them may never be able to return to work. Key Person Protection provides the owners of the business with a lump sum of money. The money can be used to recruit new people, reorganize the business or cover the shortfall of profit caused by the loss of a great employee.
This benefit is very similar to Key Person Protection. The cover is designed to provide a lump sum payment for the shareholders of the company if one of the partners of that business was forced to leave the company because of an accident or an illness. The shares could be passed to another person that has not experience in that field of business or has different goals. However, with Partnership Protection the policyholder can use the money to repurchase the shares from the dependents and run the business on his own.