Doubling premiums on Complete Protection Policy?

murf1970

Registered User
Messages
2
Hi,

I've had a complete protection policy (Life Assurance, work cover for ill-health) for over twenty years and originally with Friend's First.

I just received notice from Aviva that "following a review of my policy" they have decided that for the same coverage they will double the premium (EU437 per month to EU875 per month) or I can stay at the same premium and they'll half the benefits (currently EU540K life cover for me, EU400 for my wife).

It feels like I've no option other than take a doubled premium which seems outrageous or walk away from twenty years investing in this policy.

Does anyone have any advice? Do I have any recourse?

Thank you!
 
It sounds like this is a reviewable policy. Usually the company has the right to review it at any time but usually the first scheduled review is 10 years after the commencement and every 5 years thereafter (annually after age 70). You need to check the policy conditions to see if this is the case. The options you set out above are the typical options that come out of such a review.

If you are in good health you could see if there are cheaper options in the market for same cover for the remaining term. You will have to pay a higher premium than the original premium of 437 but it may be cheaper than 875.

It is worth mentioning that reviewable policies are still a major source of complaints that go before the Financial Ombudsman (eg policy was sold as guaranteed cover, reviews being carried out late). If you still have the paperwork, you could see what was promised to you at outside.
 
Thank you, that's good to know. I'll take a look at my files and see if I have any more details on that.

Thanks!

It sounds like this is a reviewable policy. Usually the company has the right to review it at any time but usually the first scheduled review is 10 years after the commencement and every 5 years thereafter (annually after age 70). You need to check the policy conditions to see if this is the case. The options you set out above are the typical options that come out of such a review.

If you are in good health you could see if there are cheaper options in the market for same cover for the remaining term. You will have to pay a higher premium than the original premium of 437 but it may be cheaper than 875.

It is worth mentioning that reviewable policies are still a major source of complaints that go before the Financial Ombudsman (eg policy was sold as guaranteed cover, reviews being carried out late). If you still have the paperwork, you could see what was promised to you at outside.
 
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