Life What type of Life Insurance is this?

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within29

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My partner & I took out a life policy as required by the lender through a broker.

We remortgaged a couple of years ago & I looked at the policy & saw that it wasn't a level term policy.

I dont know what it is. Yeah I know, dot need to tell me.

Its with Canada Life & is called The Setanta Strategic Growth Fund.
The Product is a Protection Options Plan/ Freedom Plan

I just need to know whether will be hit with a large increase in the premiums in the future or should we take out a new policy. I have a Long term illness & he is depressed.

Oh what a lovely life I lead
 
By the sound of it, this is a reviewable whole of life plan. It provides cover for the rest of your lives, but the premium is reviewable. Typically premium reviews occur after 10 years, each subsequent 5 years and when the older of you reaches 70, annually.

There may be additional benefits included on the policy apart from basic life assurance. For example, there may be specified serious illness cover, hospital cash etc. Ask your broker to give you details of what exactly is covered. Depending on the nature of your illness, you might possibly have a valid claim. You can also ask Canada Life to tell you what's covered - even if you don't know your policy number, they can look you up by your name and date of birth.

If you have developed a long-term illness since you took out the policy and your partner is suffering from depression, you might find it difficult to take out a replacement policy now.
 
I rang Canada Life to see if I could switch to another type of policy & they said to go through the Broker. I don't know why I did this but I asked them did he disclose my Longterm Illness. They said he hadn't & the policy is obviously void. They are sending me a copy of the application form.

I remember when we filled out the application form that the Broker wrote about my LTI. Could this have been on another application form & if he sent it to an institution will they still have a copy.

Canada Life got in touch with me again & wanted to know the details.I said I wanted to contact the Broker first. Does anyone know what happens next.
 
within29. Non disclosure whether it is intentional or not is always investigated at a claim stage.

Many people go around their everyday lives with policies thinking they are covered but insurance is and always has been based on the principals of utmost good faith. In its simplest form on your application form for cover you sign a declaration stating all the information given on your proposal is correct. If at a claim stage it is found to be incorrect ot that you mislead the company in any way, then the policy is void and no payout is made.

Prior to issuing cover Canada Life would have sent you a copy of your application and at that stage you would have had a second opportunity of spotting any errors.

At present it would be normal for them to withdraw cover but while you are thrashing what went wrong with your broker you could still try to provide them with full medical details to see if they may be able to offer acceptance terms. It is a bit of a mess for you.
 
Thanks for the reply. I dont recall having to sign something a a later date though.
The underwriters are looking into it though.
Its 6 years ago but I do recall him writing my condition on a form. Could be the case that he sent a different application to another company and would they still have a record of it.

I've now learned that he is a bit of a character.
 
within29, I would go and speak with another broker today. Given the way the markets are they will meet you straight away. Go through the full proposal form and ask them to submit it, you will get an answer pretty quickly.

Most life assurance companies have online applications systems for brokers that will come back with three different answers

i) accepted at ordinary rates - i.e. cover is ready to go provided the application form is the same as was put into the system.
ii) decline - due to underlying medical conditions.
ii) Additional underwriting required - The will result in one or more of three things

a) Report from your GP
b) Request attendance at a Medical
c) additional information from you in the form of a medical questionnaire.

Getting an application in now is better than waiting to see if your current provider will cover you. If they will agree to cover then great if not then at least you have started the ball rolling on new cover.

The key thing for you is to ensure that you have some cover and there is nothing that you can do about what has happened before.
 
Thanks again or the response

The most embarrassing thing about all this is I used to work in a mortgage brokers office that sold insurance, just the basic policies though, no nonsense no scams. Up front.
 
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