FAQ- What is Pension Mortgage Protection ?


Who can apply for a GoforCustomer Pension Term Assurance plan?

You can apply for a GoforCustomer plan if you are:
•aged between 18 and 73, and
•currently resident in the UK, and willstill be resident in the UK when your plan starts.

You should seek advice from your financial adviser before applying for this Pension Term Assurance plan.

How much will my plan cost?

The cost will depend on the amount of cover you need. In general, the higher the amount of cover and the longer the term of cover, the higher your payment will be.

The cost for your cover will also depend on other factors – your age,sex, medical history, whether you smoke, your occupation and current state of health may also be taken into account.

We will also include a charge to cover the day-to-day administration of your plan. This is called the plan charge and will be included in your payment.We will show the plan charge on your quote and cover summary.

We will deduct basic rate income tax(22% in the 2006/2007 tax year) from the payment we collect from you. You must claim any additional relief you are entitled to through your tax return.

What tax relief do I receive on my payments?

You will receive tax relief on your payments to this plan if the payments,together with any other contributions to pension schemes, are within the annual limits set out by current legislation.Current legisla tion for 2006/2007 allows you to make payments each year up tothe higher of:

•100% of your annual earnings if youearn more that £3,600 each year, or
•£3,600 if your annual earnings areless than £3,600.

If the payments to your Pension Term Assurance plan each year exceed these limits, you will not receive tax relief on your payments and GoforCustomer has the right to change or cancel your plan.

The payments you make to GoforCustomer will be net of the basic rate of tax(currently 22%). For example, if your monthly plan payment is £20 gross you will only pay £15.60 to us. If you are a higher rate tax payer, you can reclaim the additional tax relief through your tax return.

If you stop being resident in the UK during the term of your plan you may not be able to continue to receive tax relief on your payments. Please contact us if you stop being resident in the UK.

If the total of both your and your employer's payments to all registered pension schemes exceeds the annual allowance for that tax year (£215,000 in 2006/2007), you must pay a 40% tax charge on any excess.

Can my payment change?

The rates we use to calculate the payment for each of your covers are guaranteed. This means that we will not change the payment during the term of the cover unless:

•you are not eligible for tax reliefon all of your payment to us,
•you ask us to make changes to your cover,
•the information you gave us before your plan started was incorrect,
•legislation changes and reduces the amount of, or stops the tax relief on, your payments to us.

We will let you know if this is going tohappen, before we make any changes.

Will tax affect the amount of anyclaim?

We will pay any Life Cover or Serious Ill Health Lump Sum claim free of any income or capital gains tax. If you die, you will not normally be liable for inheritance tax on money received from your Pension Term Assurance plan.

If the Government makes any changes to tax, this could affect the situation described above.

You may have to pay a tax charge if the total amount of benefit from all of your pension arrangements exceeds the lifetime allowance set out by the Treasury. The lifetime allowance for 2006/2007 is £1.5 million and this figure is due to increase each year, rising to £1.8 million in the tax year 2010/2011

Once my plan starts, can I change it?

Yes. As your personal circumstances change, you and your financial advisermay need to review your cover to make sure that it continues to meet your needs.We have designed your plan to fit in with these reviews. You can add, remove orchange covers whenever you want.There will, of course, be a few limitations and rules, and some changes will involve asking questions about your health.But if you contact us we will tell you what these are and explain the processto you.

Can I increase my cover?

Yes, you can apply to increase your cover at any time.

Cover Increase Options are available.These options automatically apply if your plan is accepted on standard terms and allow you, in certain circumstances, to increase your cover without having to answer questions about your health. For full details on these options please see the Pension Term Assurance plan details.

Increasing your cover at any other time will involve us asking you questions about your health.

How to contact us?

If you have any questions about this document or protection from GoforCustomer,
you can contact us on our address.

How much will my plan pay out and who will you pay the money to?

The amount your plan pays out will depend on how much cover you have chosen. This is shown on your quote and cover summary.

If you choose a decreasing or increasing cover, we will pay the amount your cover has decreased or increased to at that time.

If we pay a Serious Ill Health Lump Sum claim, we will pay this to you.

If you die during the term of the plan, the scheme administrator of the GoforCustomer Personal Pension Scheme will decide who will receive the plan proceeds. For example, this could be your spouse, your children or another financial dependant. You can nominate a beneficiary by writing to the scheme administrator but the final decision on who receives the money is still made by the administrator.

What if I change my mind and want to cancel my plan?

When your plan starts we will send you a document called a cancellation notice. You will then have 30 days to change your mind, cancel your plan and we will refund in full any money paid.The 30 days we give you to change your mind is more than the 14 days required by financial services regulation for Life Cover with a term of more than 10 years that will end after the 70th birthday of the person covered.

If you want to cancel your plan after this time, please write to us.

Can GoforCustomer cancel my plan?

We can cancel your plan if you do not keep your plan payments up to date or if you make a claim and we find that you have deliberately not told us something that affects your cover.

We can also change or cancel your plan if part or all of your plan payment is not eligible for tax relief.

How do I make a claim?

If you, or those representing you, think that you have a valid claim on your plan,you or they should:
1. phone us on 01823 286096
2. fill out the claim form that we will send you and send this back to us with any other documents we request
3. continue to make your payments.

Please see the plan details booklet for information on how we will assess a claim.

How do I complain?

We hope that you will never have reason to complain, but if you do, you can contact us in any of the following ways.

write to us
Go for Customer Ltd.
Mary Street House
Mary Street
Taunton
Somerset
TA1 3NW
phone us 01823 286096
fax us 01823 257319
email us info@goforcustomer.co.uk

Who provides my cover?

Your cover (apart from Instant Cover) is provided through a registered pension scheme called the GoforCustomer Personal Pension Scheme which is run in accordance with a set of rules that override all other documents.

The Law
The Law of England and Wales will apply to this plan.

Language
All our communications with you now, and throughout the term of your plan,will be in English.

Financial Services Compensation Scheme
Your plan is covered by the Financial Services Compensation Scheme.You may be entitled to compensation if we are unable to pay claims due to,for example, insolvency. This dependson the type of business and the circumstances of the claim. Further information about compensation scheme arrangements is available from the Financial Services Compensation Scheme.

About this key facts document
This document is based on our understanding of current law and tax rules and you should obtain expert advice about your own plan and personal circumstances.