Life Insurance - Decreasing term

skanro

I have a decreasing term life insurance with L&G. Have been with then for almost ten years.
There is a wording in their policy that states 'After this policy has been in force for full 10 years it will have a Guaranteed Surrender Value, provided it has not previously been paid up'
Does this really mean that if I cancel the policy in couple of months (when I would have completed 10 years), I would get some money back from them?

kingstreet

Are you sure it's a decreasing term policy?

Term assurance policies do not have any savings element, so the likelihood of a surrender value is nil. You also can't make a term assurance paid-up. If you stop paying, the policy lapses and that's it.

Does the clause you've quoted appear in the general policy documentation or in your specific contract?

Some insurers use policy wraparounds for multiple contracts, so you might be reading a bit which applies to a different plan.

Either way, the only way you're going to get a definitive answer is to call them.

LifeInsuranceMan

I have heard of certain term assurance policies which have a cashback element, at the end of the policy, if you have not claimed on it. But these are pure protection policies and are not investment linked.

It appears that your current plan has an investment element, so I agree you need to clarify with L&G before cancelling.