Summary of Income Protection Insurance

Who we are About Income Protection Insurance Income Protection Insurance in Detail So why join the DG Mutual Income Protection Insurance? Our Aims Your Commitment Income Protection Insurance Risk Factors Your Questions Answered on Income Protection Insurance Other information

Who we are

The DG Mutual is a mutual organisation owned and run by its members, which for over 80 years has been providing income protection insurance and therefore peace of mind! The DG Mutual income protection insurance was originally formed to protect the incomes of dentists, but membership was widened to include most professional occupations many years ago. We are confident that we can take away the fear of income loss if illness strikes because that’s what our members tell us. It’s why so many of our members stay with us up to retirement and beyond. It’s why you should create that peace of mind by protecting the lifestyle you currently have with insurance that protects your income.

About Income Protection Insurance

There are many ways to protect your income and even more providers. The danger is that faced with too many insurance suppliers, each offering different insurance deals for different lengths of time at vastly different rates, too many people put off taking this essential action. We recognise the problem and whatever your situation we can tailor your benefit to suit your individual needs. There’s another reason to choose to protect your income with the DG Mutual; with this insurance you share in any surplus profits created whilst you are a subscribing member so you get a *tax-free lump sum at retirement. *Free from UK personal income tax and capital gains tax under current legislation.

Income Protection Insurance in detail

Even if you receive some income from an employer when you’re ill there’s an option for you. If you don’t have that benefit (perhaps you’re self employed) there’s an option for you also. Here’s the full range of income protection insurance available to you.

  1. Constant Bond Insurance (Day one) – The benefit is paid out from the very first day of your injury or illness. It is paid at a constant level until your recovery, death or retirement.
  2. Escalating Bond (Day one) – This benefit is also paid out at a constant level. After 52 weeks this particular benefit will increase by 3% and will rise at the same rate for every year your claim remains valid.
  3. The Deferred Constant Bond benefit is paid after a deferred period and through until death, recovery or retirement. You can choose from 52, 26, 13 or 4 weeks for your plan to start.
  4. Deferred Escalating Bond benefit. This benefit is paid from your chosen deferred period (see 3 above) with the added comfort of escalation (see 2 above).
  5. Reducing Bond (Day one) – This benefit is paid from the first day of illness or injury but reduces after 26 weeks to 50% of the original amount. It’s an ideal benefit if you have reducing commitments or if you have some other deferred benefit already in place.
  6. The Double Bonds benefit levels remain the same however, extra subscription increases your individual share of the surplus.

Use our online income protection insurance quotation generator to see the subscription rates for each option. Definition of incapacity You will be able to claim sickness benefit if you are totally unable to perform all the essential duties of your own occupation and of any other occupation to which you are suited by training, education or experience, and are not following any other occupation for profit or reward. Who can join and how All but the highest risk occupations are covered and by taking this stance we are able to maintain our income protection insurance subscription rates at very competitive levels. You can find out if you are eligible for membership by contacting us by telephone, fax and e-mail or by visiting our website. You can apply to join between the age of 16 and 50 and choose which retirement age suits you best – 55 or 60. You can download this form and others from this site. How to claim Being able to claim benefit when they are ill is why our members join. So it’s not treating them fairly if we make claiming difficult. When you join you will receive a set of claim forms so that when you are ill you don’t have to wait for us to send you one. Again, you can download or request a form via our website. The claim form contains two sections, one for you to complete and one for your GP. Payment of any fee to your GP for completion of the form is the responsibility of the member and any cost incurred for the provision of any additional medical reports would normally be borne by us. During any claim you may be requested to complete additional progress forms and attend for examination by a medical practitioner.

So why join the DG Mutual?

  • Tax-free* benefit between £60 and £1200 per week. *Free from UK personal income tax and capital gains tax under current legislation.
  • Cover up to 66% of net pre-tax earnings.
  • Easy to calculate subscription rates.
  • No occupation loading.
  • No smokers loading
  • Benefit paid from first day of illness or injury as soon as you join or from a choice of deferred periods.
  • Your share of our surplus profit begins to build after just six months membership.
  • Extra share of surplus available if you choose double bonds.
  • No reduction in the final cash sum if you claim.
  • Benefit payable if you work in an EU member state.
  • No call centre – you speak to the staff who process your application and claims.
  • House persons and Students covered.

Our Aims

  • To pay you regular benefit to replace a loss of earnings if you are not able to work because of illness or accident.
  • To provide a range of options to enable you to cover your income protection needs.
  • To provide you with income protection benefit regardless of the number of claims made.
  • To provide a cash sum when you retire that reflects your level of benefit and length of membership.

Your Commitment

  • For income protection insurance you must commit to making regular payments at the various levels up to your chosen retirement age.
  • For insurance to protect your income you must provide all reasonable information on request when making an application for membership or making a claim. This applies to non-medical and medical issues.
  • For income insurance you must inform us in writing of any material change in your circumstances from the date you apply to join and throughout membership.
  • For income protection you must submit claims for benefit within the specified time limits.
  • It is for you to review your benefit level during your membership to make sure it is a] adequate and b] not over-insured.
  • For income insurance you will become a member of the Dentists’ & General Mutual Benefit Society Limited and must conform to its rules.

Risk Factors

  • Your income insurance membership and entitlement to benefit is at risk if you stop paying your subscription.
  • The amount of cash sum is not guaranteed. It will depend on apportionment and bonus interest rates declared by us during your membership. Penalties will be applied if you cancel your membership early.
  • Information in this brochure is based on current H M Revenue and Custom rules. These may change in the future with a consequential effect on benefit.
  • Subscription rates are not guaranteed and are reviewable. They are based on historical factors and future assumptions that were made when the rates were originally set. Therefore, they may need to be amended in the future for all members of the Society if our claims costs and expenses so demand.
  • Your circumstances may change and you should review your protection benefit level against your earnings on a regular basis.

Your Questions Answered

How does the income protection insurance policy work?

You pay a monthly subscription for your chosen type of cover and retirement age. Most of the subscription pays for your sickness benefit cover and the remainder enables you to build a capital sum which will become payable at retirement or death.

At what age can I join and for how much benefit?

You may join at age sixteen and you may apply for benefit up to 66% of your net pre-tax income, less any other continuing income or insurances.

Will the subscription be exactly as shown in the brochure?

Very rarely we will offer you membership at a higher rate to reflect specific medical issues but usually we try to deal with this point by excluding any relevant pre-existing conditions.

Do my subscriptions increase with age?

Yes, subscriptions increase in 5 year bands. We do this so that they are lower when you are younger and probably have higher levels of expenses. It also reflects the higher risk of illness at older ages.

Can I increase or change my cover?

Yes, increases in levels of cover are allowed up to age 50. Changes which do not increase benefit levels may be allowed after that depending on the new length of deferment required.

What happens if I cancel my insurance cover?

If you cancel your cover there may be a cash sum payable to you as your share of the surplus gained whilst you were a member of the Society. The length of your membership will dictate whether you are entitled to this sum and if any forfeiture penalties need to be applied.

What happens if my circumstances change?

None of us can predict our working pattern through to retirement. You must tell us if there is a change to your level of earnings, your occupation and your address. The Society is always willing to consider temporary variations but you must contact the office; if we can offer an alternative benefit we will.

What happens if I stop paying my subscriptions?

If you stop paying your subscriptions for three months your membership will lapse and your entitlement to the benefit will cease so it’s important to let us know if you are changing bank accounts or have a temporary difficulty.

Will my subscription change if I claim?

The number of claims you make will not affect the amount of your subscription.

How much medical evidence is required at application and claim stages?

The application and claim forms contain medical questions that you must answer. We may contact your doctor for information or ask you to have a medical examination at our expense.

Is the cash sum guaranteed?

The cash sum reflects the financial strength of the Society throughout your membership so we cannot guarantee that it will be exactly as shown in the quotation you will receive when you join. The value of investments can go down as well as up.

What happens if I die?

If you die during membership the value of your cash sum at the date of death will be paid to your next of kin or your personal representative, along with any terminal bonus applicable.

Other information

Contract Terms This document contains the important Key Features of Income Protection insurance from the Dentists’ & General and should be read in conjunction with your quotation. Full details are contained in the Society’s rules which can found on the Society’s website; printed copies are available on request. If you are in any doubt as to whether this policy is suitable for your needs, you should consult a financial adviser. Advisers may charge for providing you with advice but they should confirm any cost beforehand. How to complain If you’re not completely satisfied with any part of the service we provide, please direct your concerns to the Chief Executive. You can either put your complaint in writing or e-mail You can request a copy of our complaints and handling procedure documents. Any complaint that we cannot resolve can be reviewed by the Financial Ombudsman Service. Making a complaint against us will in no way prejudice your right to take legal action. Regulation The Dentists’ & General is authorised and regulated by the Financial Services Authority and is registered with that body under firm reference number 139535.