IPTM7085 | Variations which do not increase the benefits secured or extend the term

The following are examples of variations not regarded as increasing the benefits secured or extending the term:

• reduction in the term of an endowment (regular premium) policy, premiums remaining unchanged and sum assured correspondingly reduced

• ·conversion of a without-profits policy to with-profits or unit-linked, premiums remaining unchanged and sum assured correspondingly reduced

• payment in commutation of future premiums

• change in premium frequency (for instance annual to monthly)

• switch of linked investment funds in a unit-linked policy

• surrender of bonus

• changes to premium or sum assured, or extension of term, to correct genuine misstatement of age

• removal or reduction of a debt or premium loading imposed on account of an exceptional risk of death, or an exclusion (for instance for war risks) so imposed, whether or not premiums increase as a result; or a switch from a loading to debt or vice-versa

• increase or decrease in the sum assured on death under a unit-linked policy, where there is no increase in premium, and the consequence of the change is an increase or decrease in the proportion of premiums allocated to units by reference to an increased or decreased mortality charge levied against the unit fund.