PAX PA Optional Life and Critical Illness Insurance allows you to add death by natural causes and certain specified critical illnesses to your PAX Personal Accident Policy.
Your level of Optional Life and Critical Illness Insurance cover will be the same as the number of PAX Personal Accident units you choose and whether this is an Individual or Family plan.
For example, if you have 10 units of Individual Personal Accident Insurance, and choose to select the Optional Life and Critical Illness Insurance, you will have 10 units of Individual Optional Life and Critical Illness Insurance cover.
What is covered?
This optional extension provides payments in the event of*
Death by natural causes
Diagnosis of one of the following specified critical illnesses:
Heart attack – of specified severity
Cancer – excluding less advanced cases
Stroke – resulting in permanent symptoms
What is not covered?
Accidental death (this is covered under the personal accident section)
Suicide within 12 months of the insured persons cover starting
Claims for children under 28 days old
Critical illnesses other than those defined (heart attack, cancer, stoke)
The sum insured per unit for death by natural causes is the same as that for death by accident i.e. £10,000, per unit. The sum insured for the diagnosis of a critical illness is £4,000 per unit.
If a payment of £4,000 per unit for critical illness has already been received by an insured person, if death occurs later from any natural cause, the payment per unit will be £6,000 i.e. £10,000 less £4,000.
For a child aged 28 days to under 16 years old the maximum death benefit is £7,500 and for critical illness is £3,000 (no matter how many units purchased). If death occurs later from any natural cause, the benefit payable will be £4,500 i.e. £7,500 less £3,000.
If you have been given a diagnosis of a terminal illness you will be paid the death benefit. A terminal illness is an advanced or rapidly progressing illness where, in the opinion of an attending consultant, life expectancy is no greater than 12 months.
*Exclusions apply, please refer to the policy documentation
**The death benefit is paid tax-free to the deceased person’s estate, which may then be subject to inheritance tax.
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Personal Accident Insurance
PAX Personal Accident Insurance provides tax-free* cash payments if an insured person is killed or suffers the following as a result of an accident:
a permanent disability
a specified fracture to the arm or leg
a rupture to specified tendons which requires surgical treatment
torn ligaments to the knee or ankle joints
displacement of bones at a joint which requires restoration by a doctor
hospitalised for over 5 nights