Statements required from beneficiaries under a policy
A statement is required where:
- a policy is issued on or after 6 April 2013,
- a policy is varied on or after 6 April 2013 and the premium period is lengthened or the premiums payable are increased,
- a policy issued before 21 March 2012 is varied on or after 6 April 2013 such that the premium period is lengthened or shortened or the premiums payable are increased or decreased,
- a qualifying policy is assigned to someone else on or after 6 April 2013 and the assignment is an excluded one,
- upon inheritance following the death of a beneficiary under a policy on or after 6 April 2013.
A statement is not required in the following circumstances:
- on the issue of a policy where the statement information has already been provided to the issuer and that information has not changed in the interim,
- on assignment of a share in rights under a policy an existing beneficiary has previously made a statement for that policy and the information has not since changed,
- following a deceased beneficiary event if before the event the beneficiary under the policy was already a beneficiary under that policy,
- on assignment which is for security on a debt or on discharge of a debt,
- on assignment as part of legally enforceable obligation relating to a divorce or dissolution of a civil partnership and the policy is to pay off an interest only mortgage,
- on assignment to the personal representatives of a deceased individual.
A statement is only required following the first variation that makes a policy a RRQP. A statement is not required following any further variations that would otherwise require a statement. For example, if a protected policy is varied after 5 April 2013 such that premiums increase to £4,000 then a statement is required and the policy becomes RRQP from the date of change. If the policy is then varied again so that premiums increase to £5,000 then no further statement is required upon this second variation.