IPTM3520 - Calculating gains: death, maturity, full surrender or assignment: replacement policies

A qualifying policy may be replaced by another qualifying policy and the two policies together treated as a single qualifying policy if all the following conditions are met

  • both replacement and replaced policies are regarded as qualifying under the rules of ICTA88/SCH15/PARA17 - see IPTM8120 onwards
  • the replacement results from a change in the life or lives assured
  • any sum payable by the insurer on the termination of the replaced policy is retained by it and applied against premiums due on the replacement policy - referred to as a 바카라 사이트˜retained replacement policy premium바카라 사이트™
  • no consideration in money or money바카라 사이트™s worth is receivable by any person in connection with the termination of the replaced policy or commencement of the replacement policy, other than the policy benefits - more details at IPTM7340.

This retained replacement policy premium is ignored when calculating total benefits and total deductions in calculating gains under IPTM3510.