I have a life policy with a company called Aviva that was arranged about three years ago. As my circumstances have changed I want to cancel it. I have tried to contact this company but it no longer has an office in the UAE. Have I actually been insured all this time? When I took out the plan I was given the impression that some of the premiums would be paid back to me on cancellation, so I am keen to get this refund. Is this company still operating and how do I go about dealing with them? MD, Abu Dhabi
Aviva International pulled out of the UAE a couple of years ago, but any policies in operation are still valid and are administered from the Singapore office. Having seen the formal documents relating to the original policy, I can see that MD has what is known as a level-term assurance policy. This type of plan is designed to provide a set amount of life cover for a fixed term, selected at outset.
It is a simple policy, without any savings or investment element that is particularly popular when cover is required for a specific term or purpose, such as linked to a mortgage or for when children are young.
This tends to make it cheaper than other types of life cover. These plans never acquire a surrender value and so while they can be cancelled at any time, policyholders will not receive any payment or refund from the insurance company.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com
