Calculation of gains: full surrender, maturity, death or whole assignment: related policies
A new policy is related to an old policy if it is issued
- in substitution for the old policy, or
- on the maturity of the old policy following the exercise of an option in the old policy.
Two policies are related policies if one is related, directly orindirectly, under this definition to the other. So, if policy A is related to policy B andpolicy B is related to policy to C and so on, then policies A, B and C etc. are allrelated policies.
Although, the definition of related policy is derived from ICTA88/SCH15/PARA17,it applies to all life insurance and capital redemption policies, not just qualifyingpolicies.
Where an old policy is replaced by a new related policy, there will be a surrender ormaturity chargeable event.
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