Life Thought we had a Continuation Option...

Discussion in 'Insurance not covered in other forums' started by LostInFinance, 15 Mar 2019 at 9:39 PM.

  1. LostInFinance

    LostInFinance New Member

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    Last edited: 15 Mar 2019 at 11:36 PM
    We (my wife and I) are coming near the end of the 20 year term of a Life Insurance Policy. We're considering our options at the end of our policy, whether to continue or take out a new policy, etc. It's quite a while (15 years+) since we took out the original policy, and obviously don't recall all the details discussed at the time, but do recall the topic of 'continuation' coming up. We have a copy of a signed 'Reason Why' letter, sent by our adviser at the time (together with Policy Document), stating that a Continuation Option was included. It goes on to explain that at 'the close of the 20-year term a new policy can be taken out without evidence of health'.
    But when we look through the Policy Document now we see that Continuation is not included. ('Protection Continuation Option?' No.)
    To complicate things slightly, the adviser we dealt with is now retired, although the business has been transferred on to another reputable financial adviser.
    My questions are:
    Do we have any grounds now to have the Continuation Option re-added?
    Should we pursue that directly with the Insurance Company, or the Adviser?
     
    Last edited: 15 Mar 2019 at 11:36 PM
  2. LostInFinance

    LostInFinance New Member

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    Anyone out there with any thoughts on this? Have we a leg to stand on?
     
  3. noproblem

    noproblem Frequent Poster

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    Surely the company are entitled to know about the health of customers before insuring them. As for a leg to stand on, I do hope ye guys have 4 of them.
     
  4. Monbretia

    Monbretia Frequent Poster

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    If you have a continuance option then the company doesn't get to know the up to date health of the customer, they just get charged the rate for their age at time of conversion, that's the deal with a continuance option and that's why it costs more than basic cover with an end date.

    Ask the company for a copy of your application form for starters.
     
  5. DeeKie

    DeeKie Frequent Poster

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    You do. You have a letter confirming your preferred route. Contact your advisor.
     
  6. SBarrett

    SBarrett Frequent Poster

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    Nope. Priced into the contract. You pay more each month to have the option. Most of the time, it's not exercised. Cover is priced at your age when option is exercised so the premium can be quite expensive. Reduced need for life cover in older age as you should have savings/ pension at that stage.


    He has a letter from a retired advisor, not from the life company. The advisor should have checked the policy docs before issue so it could have been corrected. If there's no continuation option on the contract, the life company isn't going to honour a retired advisors mistake 15 years later.



    Steven
    www.bluewaterfp.ie
     
  7. WhiteCoat

    WhiteCoat Registered User

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    Anybody know what the legal position/redress is here?
     
  8. Monbretia

    Monbretia Frequent Poster

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    Zero I'd imagine unless you find the continuance option ticked in the original application form. Up to customer to check policy when they got it to be sure it was what they wanted.
     
  9. Frank Underwood

    Frank Underwood Registered User

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    Hi OP,

    Did the broker give you a price including the continuation option when he came out to discuss the plan, fill out the application etc? If so, is that the price you have paid all along? Or did you pay a lesser premium (to reflect not having the continuation option)? If you have been paying a premium that includes the continuation option, they will have to honour it, regardless of the policy document. Do you have a quote from the time you took out the policy?