IPTM8090 - Connected policies: ICTA88/SCH15/PARAS 13 and 14

Policies with interdependent terms of duration

Where the terms of one policy provide that it will continue in force only so long as another policy remains in force, neither of the policies will qualify unless the qualifying rules are satisfied when the two policies are considered together as one policy.

This rule applies to any insurance policy that might be written to come to an end automatically when a separate endowment policy comes to an end, whether or not it is a long-term life policy.

Policies with connected terms

Where a policy is connected with another policy and the benefits under one of the policies are greater than one would reasonably expect if it were looked at without regard to the other policy, then that policy does not qualify.

For this purpose, two policies are connected if they are in force simultaneously at any time and one policy is issued with reference to the other or with a view to enabling or facilitating that other policy’s issue on particular terms. Two policies cannot be connected in this way unless they are written in the course of long-term insurance business, in the UK or overseas