No GIO offered on my Term Assurance plan?

skylight

I have recently taken life assurance out with Legal and General - Term Assurance and I have to pay an additional premium (Only £3 a month but I think it is probably because I am obese... so I am paying £9 a month for £100k cover - non-smoker, female, 36 but on the big side - no adverse medical history/current etc). On the letter though it states that:

Regrettably, we are unable to offer Guaranteed Inssurability Options on your policy.


I have googled this but not sure I completely understand it. I think that it means to me that any changes to circumstances, ie. I get fatter (!), change my job, take on a new hobby etc I have to tell them and they would assess this and these may then affect my premiums. Would that be right?

Also, if I ever get a quote from someone else in the future, would I have to disclose that I paid an additional premium? Is this amount not simply based on risk factors etc?

dunstonh

I have googled this but not sure I completely understand it. I think that it means to me that any changes to circumstances, ie. I get fatter (!), change my job, take on a new hobby etc I have to tell them and they would assess this and these may then affect my premiums. Would that be right?

No. GIO is where you wish to increase cover in future and are excercicing the guarantee option. i.e. they have to cover you irrespective of your health. Its quite an important option for life assurance and one I have activated for clients a few times.

Also, if I ever get a quote from someone else in the future, would I have to disclose that I paid an additional premium? Is this amount not simply based on risk factors etc?

You have to disclose the fact you have been offered insurance on modified terms. This would include the increased premium and removal of options covered.