After Sales Service 售後服務

Policy Changes 更改保單

A life policy may run for decades, and the policyholder's family, finances and protection needs may change. A policy change alters the contract or updates its records. It must generally be requested by the policyholder (the life insured or a beneficiary has no such right as such) and agreed by the insurer, then recorded by endorsement or a revised policy schedule. An insurance intermediary has no authority to alter policy terms or promise approval. The intermediary should help the client and pass the request to the insurer promptly, and should not say the change is effective until the insurer has confirmed it.

Whether new underwriting is needed depends on whether the change increases the insurer's risk. Increasing the sum insured or adding a rider generally requires evidence of insurability, and the insurer may accept, adjust the terms or decline. Reducing the sum insured or removing a rider lowers the risk, so evidence is generally not needed. Premium and cover fall accordingly, cash value may be affected, and the reduced sum insured must still meet the insurer's minimum. Administrative changes such as a new name or correspondence address involve no risk assessment, but the policyholder should keep details accurate so as not to miss important documents such as premium notices.

A change of premium mode, such as from annual to monthly, is generally made at a premium due date or policy anniversary. Because the insurer receives the money later and administration costs more, more frequent payment usually means a higher total annual premium. A change of plan is handled under the policy terms and the insurer's rules, and may involve paying a difference or new underwriting. An exception is a term policy with a conversion option: if the policyholder converts to whole life or endowment insurance within the stated period, new evidence of insurability is generally not needed, although the premium is usually higher.

A change can also affect third-party rights. A revocable beneficiary can be changed on the policyholder's application, but changing an irrevocable beneficiary first requires that beneficiary's consent. After an absolute assignment, the assignee rather than the original policyholder is entitled to request changes. After a collateral assignment, until the security is released, a change that would prejudice the assignee's interest, such as surrender or a reduced sum insured, generally requires the assignee's prior consent.