Exclusions to the annual premium limit
The following policies are excluded from the annual premium limit:
A policy issued before 21 March 2012 is a protected policy.
Qualifying policies issued before 21 March 2012 will not be affected by the annual premium limit unless:
- they are subjected to a variation (see IPTM2080) on or after 21 March 2012 and there is a breach of the annual premium limit following this variation (see IPTM2076) or
- they are assigned (see IPTM2081) on or after 6 April 2013.
Pure Protection Policies
ICTA88/SCH15/PARAA1 & PARAA6
Policies (referred to as “pure protection” policies in the legislation) which:
- have no surrender value and are not capable of acquiring a surrender value or
- under which the benefits payable cannot exceed the amount of the premiums paid except on death or disability.