IHTM20243 - Special rule: Term assurance policies excluded from special rule

Term assurance policies ( IHTM20102) are excluded from the special rule if the sum assured becomes payable only if the life assured dies before the expiry of a specified term (or before the expiry of a specified term and during the life of a specified person).

However, if the specified term ends (or can be extended to end) more than three years after the policy is made and if neither the life assured nor the specified person dies within the specified term, then

• the premiums must be payable during at least 2/3 of that term and at yearly or shorter intervals, and
• the premiums payable in any one period of twelve months must not be more than twice the premiums payable in any other twelve month period.