scandia doubling insurance premiums

[mgp]

My husband has had a life insurance policy for several years with Scandia , they have now said his premiums are to rise from £83 to £193 per month or his life insurance will halve by 50%. Does anyone know if they are legally entitled to do this.

[Rob S]

In any business there is nothing to stop them charging whatever prices they want. Many goods have recommended retail prices, but they are just that, a recommendation. If Scandia want to increase their premiums by such a level there is little to stop them. The increase should give you an incentive to look around for an alternative.

[beccus]

Digging in the very back of my mind it sounds as if this might be some kind of revewable premium where after a set period of time (10 years for example) the cover will be reviewed and the risk you present will be reassessed in line with your age etc. I'd look over your policy document for confirmation.

[mgp]

I am surprised that they are called rrp s , I thought a contract would have been signed at the start with some form of charge band perhaps.

[Trojan1401]

It all does depend upon the original type of contract signed & whether the policy is "increasing term" or whole life etc. Simply increasing the premium for no particular reason does not sound correct.
Has there been a change in circumstances i.e. deterioration in health. However if there was no provision for this in the original contract, then they should not be allowed to change rates without reason. The risk would've been underwritten prior to inception and rates set accordingly.
You need to go back to Skandia and request a full detailed reson behind their request.

[ericollyandyoyo]

This is probably the scandia reviewable whole of life policy. Starts at a certain amount of cover and premium, part of the premium is invested. Assuming investment returns hit some previously decided rate then the policy and cover remain the same (obviously this has not worked in recent years) at the review date, usually every 10 years, premiums are reset.

As someone posted above it may now be a time to review the policy and shop around