If the policy does not proceed, then the data is deleted.
What changes can they make to the policy?
Morris: If needed, your client can:
- reduce the term;
- reduce the sum assured; or
- change the frequency of premium payments.
Life insurance policies can also be cancelled at any time without penalty, other than the loss of premiums already paid.
If clients are thinking about cancelling a policy, it is always useful to speak to an adviser first to see whether this is the best decision or to see whether there are any alternatives or changes that could be made to make the policy more appropriate for them if their circumstances have changed.
What happens if a client misses a premium?
Morris: In the event of a premium being missed, your client has 30 days to pay from the premium due date or the policy will lapse.
The client should receive a notification that a premium has been missed.
Trying to get a policy back on risk once it has lapsed is very difficult.
A lapsed policy often results in new cover needing to be applied for, which will be more expensive, taking into consideration the clients increased age at the time, and as it will need to be underwritten again any new health issues could also affect the terms of the policy.
Jonathan Morris is senior associate and Darren Lee is head of underwriting and claims at John Lamb Oldridge
