Small print on Life Insurance

B

barry2012

Registered User
Messages
15
Hi,

I have an existing life insurance policy with Aviva. I was reading through the small print recently and saw this paragraph:

"Can the policy be cancelled or amended by the insurer?
...
We may alter the policy or issue another in its place if:
-You change occupation or move abroad,
-it becomes impossible or impractical for us to carry out the policy conditions because of a change in law or other circumstances beyond our control,
-there are any changes in:
*The tax treatment of Aviva life and pensions UK limited
*Other legislation, or
*Revenue practice, or
-it becomes impossible or impractical for us to administer the policy"


The policy is to last for over 20 more years. Does anyone know if this is fairly standard wording for life insurance policies or should I be concerned that when I get to my early 50's Aviva could just cancel the policy?

Thanks
 
Don't know if it's standard but on Joe Duffy yesterday there were several people ringing with cases where their insurer had decided to stop providing a critical illness policy after many years and just wrote to customers telling them that was it, you have a few months to make alternative arrangements but it seems the company just decided not to offer that particular product/policy anymore as you could say it is similar to your quoted bit for them.

I wouldn't be surprised if it is standard, they are covering themselves if in case at some stage in the future they don't make sufficient on it through investments etc and claims are too high, if it is a fixed premium one then they have no option of increasing cost.
 
Thanks for the replies,

The policy is a term life policy, non-reviewable and with a conversion option. There is no specified/critical illness cover.

That's a fair point about there being no mention of the word "cancel". My feeling is that I want to take out a policy for a set time and be certain that the terms won't be changed during that time. I don't want the policy to be altered when I'm 55 to terms/conditions that render it meaningless, or impossible to keep paying (and I may have developed medical problems in the interim that prevent me from getting cover elsewhere).

I looked up the Irish Life small print. They have the same information about cancelling the policy if you stop paying premiums which is fine. They make no mention of altering the policy if it becomes impossible or impractical to administer the policy.

I'm probably just being paranoid .

Thanks again.
 
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