My whole-of-life insurer, Reassure, has confirmed to me that the units to fund my long-standing policy will not be adequate to maintain the cover after April 10 2020. We took this policy out with Tyndall Assurance through our financial adviser in 1984.
The policy was set up to pay £122,248 on death of the second life assured, and a one-off premium of £15,000 was paid to support this benefit at the time.
I received a letter from Reassure indicating that the premiums would not support the sum assured after 2020 and I responded by questioning whether the monthly premiums had been changed and querying the absence of projections about the adequacy of the units to support the premiums.
Reassure responded, saying actuaries would investigate. Prompts by telephone have not resulted in progress.
Your whole-of-life policy was designed to be reviewed after 10 years, and every five years thereafter. Reviews on this type of policy check whether premiums paid are at the right level to meet the increasing costs of cover.
If reviews find this isn’t the case, policyholders normally have the option to pay higher premiums or reduce their amount of cover.
Owing to an administrative error, the reviews on your policy were never carried out. However, Reassure unearthed evidence that you received a letter from your financial adviser in 1984, stating that your benefit would be guaranteed.