IPTM8160 - Insignificant variations

If a variation of a policy does not affect the terms of the policy in any significant respect then it will not affect the qualifying status of the policy. Such variations may be referred to as ‘insignificant variations’.

Examples of insignificant variations are

• a one-off change in the payment of premiums if it relates only to a change in the frequency of the premiums, including for instance where annual premiums are changed to monthly premiums that, when annualised, are slightly higher to reflect the increased frequency
• a change in ownership of the policy
• a change to the names and addresses on the policy of the policyholder or lives insured, but not changes to the lives insured themselves
• any changes to the premium, sum assured or policy term because of a mis-statement of age on the proposal form
• addition or removal of a critical illness to the list of critical illnesses covered, where the cover on that illness is provided free by the insurer
• a switch between different unit-linked or investment linked funds
• the addition or removal of an option where if the option is exercised the policy is not regarded as having been significantly varied.