A Guide to our Recommended Sums Assured 2009/2010
Lifecover for family protection
FPRSA=(NRE*FDL*IRR)Critical illness cover for family protection
CIRSA=(CISM*NRE)Lifecover and Critical illness cover for mortgage and liability protection
MPRSA=(TM+TUL)Income Protection in the event of sickness/disability
IPRSA=(GE*50%)A Guide to the logic
| NRE | Net relevant earnings (earnings after basic tax deductions) |
| GE | Gross earnings (before deductions) |
| FDL | Family dependency level |
| IRR | Investment rate of return |
| CISM | Critical illness salary multiple |
| TM | Total mortgages |
| TUL | Total un-secured liabilities |
| FPRSA | Family protection recommended sum assured |
| CIRSA | Critical illness recommended sum assured |
| IPRSA | Income proteciton recommended sum asssured |
A Guide to the rates adopted
| NRE | Deductions applied at standard 25% |
| FDL | Variable |
| CISM | Variable |
| IRR | Current mean 5% |
Cancellation and Commission Recovery Policy
Jump Money derives its income from commission paid in respect of transactions conducted in life, critical illness, income protection and other general insurance products. We will inform you of the amount and frequency of any commissions payable to us. This information can be found on the product illustrations provided to you by both the provider and Jump Money.
If we advise and arrange a policy for you we will receive initial commission from the provider in payment for our services. If you subsequently cease to pay the agreed premiums before the agreed policy end date which results in us refunding the initial commission which has been paid to us [in full or part], we reserve the right to recover from you an amount equal to the amount we have refunded to the provider. The amount recoverable highlighted on your product illustration as initial commission is the maximum recovery charge payable at the outset of your policy(s). The amount recoverable will reduce upon payment of each subsequent monthly premium until payment of 48 monthly premiums are paid. [see examples below].
Please ensure that you have understood all relevant documents in relation to your new policies before giving us your instructions to commence the cover. This cancellation policy becomes effective and deemed accepted by you upon your instructions to us to commence / put in force the insurance policies that we have advised and arranged for you.
Jump Money operates a fair and transparent terms policy. If you wish to receive further information in relation to our cancellation and commission recovery policy then please contact customer services by email This e-mail address is being protected from spambots. You need JavaScript enabled to view it or telephone 0113 2206560.
Example 1 - Reducing Commission Recovery Charge
| Life Insurance Policy Initial Commission Payable | £800 |
| Period In Force [Before Cancellation] | 6 months |
| Commission Recovery Charge [48mths-6mths = 42/48*£800] | £700 |
Example 2 - Reducing Commission Recovery Charge
| Life Insurance Policy Initial Commission Payable | £420 |
| Period In Force [Before Cancellation] | 36 months |
| Commission Recovery Charge [48mths-36mths = 12/48*£420] | £105 |
Example 3 - Reducing Commission Recovery Charge
| Life Insurance Policy Initial Commission Payable | £600 |
| Period In Force [Before Cancellation] | Immediate Cancellation |
| Commission Recovery Charge [48mths-6mths = 48/48*£600] | £600 |
Schedule of Administration Costs 2009/2010
The following has been prepared as a guide to our administration costs incurred during the provision of advice and services.
Costs Per Policy advised and arranged
| Financial Protection Advisor | [1.5hours@£154.08] | £231.12 |
| Administration | [1.25hours@£35] | £43.75 |
| Accounts | [0.5hours@35] | £17.50 |
| £292.37 |