Hi,
According to LA Brokers you may invalidate your life assurance policy if you change policy from year to year to take advantage of introductory discounts from brokers. They say that with life assurance you are entering into a relationship for 20 years (if that's what you signed up for) and if you display a pattern of leaving after only a short period then when it comes to making a claim the company may attempt to prove that you were being dishonest when you signed up for a 20 year policy with no intention of keeping to it. They may turn down your claim (or rather that of those you leave behind) on the grounds that you lied when taking out the policy.
See:
My understanding of life assurance was that you could move around as you chose. If you stop paying then you can move on.
I know one option would be to take out a policy for only a year or two.
Anyway does their position make sense? Might possible claims be invalidated on the basis that you were being dishonest in signing up for a 20 year policy?
Any advice appreciated ,
Thanks, Tom
According to LA Brokers you may invalidate your life assurance policy if you change policy from year to year to take advantage of introductory discounts from brokers. They say that with life assurance you are entering into a relationship for 20 years (if that's what you signed up for) and if you display a pattern of leaving after only a short period then when it comes to making a claim the company may attempt to prove that you were being dishonest when you signed up for a 20 year policy with no intention of keeping to it. They may turn down your claim (or rather that of those you leave behind) on the grounds that you lied when taking out the policy.
See:
My understanding of life assurance was that you could move around as you chose. If you stop paying then you can move on.
I know one option would be to take out a policy for only a year or two.
Anyway does their position make sense? Might possible claims be invalidated on the basis that you were being dishonest in signing up for a 20 year policy?
Any advice appreciated ,
Thanks, Tom