Life Protection Policy has been transferred from one provider to another

euhorsman

I'm after some advice, not sure if anyone can help? I took out a life protection policy with Aegon in 2021 for a period of 15 years with an option to extend when it got close to the end date (May 2036). The policy has since been transferred to Royal Life in 2023 and I recently got in touch with them to make sure the policy was still active etc. I asked if I am still able to extend the term of the policy when it gets close to the end and they said that option was not available with them. I feel like I've been paying into a policy for 4 years for nothing. I would have thought they should honour the terms of the original policy provider? I am due to retire in June 2034 ish and would hope I still have some life left in me to at least have peace of mind that my family are provided for on my passing. Any advice would be greatly appreciated.

DullGreyGuy

euhorsman said:

I'm after some advice, not sure if anyone can help? I took out a life protection policy with Aegon in 2021 for a period of 15 years with an option to extend when it got close to the end date (May 2036). The policy has since been transferred to Royal Life in 2023 and I recently got in touch with them to make sure the policy was still active etc. I asked if I am still able to extend the term of the policy when it gets close to the end and they said that option was not available with them. I feel like I've been paying into a policy for 4 years for nothing. I would have thought they should honour the terms of the original policy provider? I am due to retire in June 2034 ish and would hope I still have some life left in me to at least have peace of mind that my family are provided for on my passing. Any advice would be greatly appreciated.

A Part VII transfer will have been used to transfer the business from Aegon to Royal Life, the legal effect of this is where "Aegon" is stated it should now be read as "Royal Life", it doesnt change the T&Cs of your policy. 

So what does your policy state about extension? If you have a contractual right to have it extended then you still do, if its discretionary/subject to underwriting etc then you never had certainty that it could be extended 

Who will be financially dependent on you upon your death that you haven't planned for via pensions etc? For most the need for life insurance falls away at retirement; some will want life assurance for IHT planning etc though. 

euhorsman

DullGreyGuy, thank you for your comments.  I will look at my policy terms and conditions to confirm the extension part.  If, which is what I hope, it is stated in the T&C's then I will try to find out how to move forward. 

With regards to my pension etc. that is something I'm looking into currently.

Weighty1

Extensions to life insurance policies are rarely allowed.  Only in certain circumstances can changes be made to existing plans (called Guaranteed Insurability Options - GIOs) but this normally involves only increasing the amount of cover, not extending the term.

If you want a plan to run over a longer term then you've got 2 options.  Make the changes now when you are as young as possible or wait until the existing plan is going to expire but at that point you will be older so the premium will be higher and you could have had negative health events making it more dificult to change the policy.

kingstreet

Takes me back to my Sun Alliance & Phoenix days in the mid-1980s.

In my day you could convert, increase and/or renew a term assurance; but even then I can't remember there being an option to extend.