Disqualified Life Insurance Policy: Protection and Insurance Advice
Although a life assurance policy may be qualifying when it is taken out, it is possible to make changes which would disqualify the policy. For example:
Once a policy has been disqualified the tax treatment is the same as for a non qualifying life assurance policy.
Please see the specific rules for whole of life, endowment or term policies.
Disqualification of tax privileges should be noted when you are making significant changes to policies such as reducing premiums, changing the length of the policy or encashing it early.
Request expert advice today before making changes to your policy.