Life Insurance Abroad

jaxdon

I have just been told by friends about trying to claim on a Life term policy and being refused by the insurance company. The Insurance Company said that the policy did not cover the insured whilst living abroad. However, they had a change of address on their records for nearly 7 years, have written to them on numerous occassions and have taken the premium every month. Anyone else know anything about this.

dunstonh

However, they had a change of address on their records for nearly 7 years, have written to them on numerous occassions and have taken the premium every month.

That isnt necessarily a change in residency though. It may be the policy owner lives there but the life assured doesnt or that they have a second home and have their mail sent there or they use an offshore admin assistant. A change of postal address is just that.

Some plans may have exclusions on residency. There is no hard and fast rule you can apply to all plans. You would need to check your policy document. However, going abroad on holiday is usually fine (some set a maximum period) but its not uncommon when you change residency that the cover will no longer apply.

His financial adviser would have to take some responsibility for not telling him. Of course, that assumes he used one. If he didnt, then he takes on that responsibility for knowing these things himself. One of the risks of DIY.

It is possible that the insurer would refund the premiums since he ceased to be eligible but it would be a goodwill gesture. A carefully worded request stating the dates, providing evidence and stating you want premiums since then returned should do the trick.

jaxdon

Saga continues. The insurance company admit that they had the change of address and should have informed them that the policy would only stay in force for 5 years from the date of notification. In fact the letter they received acknowledging the change of address confirmed the type of policy and the fact that it would stay in force until the 60th Birthday of the insured as long as all payments were received as agreed. The Insurance co. have agreed to refund the over payment of premiums but will not acknowledge any wrongdoing on their part. Is there not a law stating that they are required to notify you of any changes in your policy wording or change of entitlement? If they had been notified of the 5 year cut off date they could have taken out a policy in Spain. Must be some culpability somewhere.....Be warned if you are moving abroad....