“Aviva knows this policy is not fit for purpose”

An MP has spoken out against an insurance company’s refusal to compensate a dying cancer patient, saying Aviva knew the terminally ill man’s insurance policy was “neither practical or fit for purpose.

Terminally ill grandfather Shaun Pinkney has been paying life insurance premiums for 15 years but Aviva told him he couldn’t cash in his policy. The 53-year-old is unable to claim terminal illness benefit because he does not have enough time left on his scheme, Aviva bosses say.

According to Aviva, the fine print states that someone with a terminal illness can only make a claim if they have 18 months or more remaining on their policy. Shaun didn’t start experiencing symptoms or get a diagnosis until about six months after that deadline had passed.

Shaun – father-of-four and grandfather-of-six from Salford – has just two months left on his insurance policy and has been told he cannot renew his policy due to his diagnosis. Salford and Eccles MP Rebecca Long-Bailey weighed in on the controversy, calling the case “deeply unfair”.

LEARN MORE: “I’m dying and my life insurance company won’t give me a cent”

Aviva claims that “Terminal Illness Insurance allows customers to receive a life insurance payout sooner, if a specialist doctor confirms that they are unfortunately expected to live less than 12 months after being diagnosed with a terminal illness. terminal”.

The MEN understands that Aviva has reviewed Shaun’s case but has not changed its decision as it does not have an accurate prognosis of 12 months to live. But Aviva said it could not offer him another insurance policy due to his overall terminal diagnosis.

In December 2013, Aviva stopped selling contracts with a gap between the end of the major service and the expiration of the rest of the contract, we learned from the MEN.

The MP declared to Manchester Evening News: “Shaun’s case seems profoundly unfair. This is not a problem of its own making and the fact that Aviva stopped selling policies with this strict time limit over a decade ago indicates that they know they are not practical or suitable for their objective. Every case is different and in Shaun’s case he was told it was difficult to predict his life expectancy.

Hope of “last family vacation” dashed by insurance company’s decision

Shaun says he was caught in a trap where his diagnosis came too late and the 18 month deadline had already passed, so he cannot claim the terminal illness benefit which would allow him to receive an earlier life insurance payment. But now the rest of his life insurance policy expires in just two months and he will be left without coverage because he cannot renew or obtain new life insurance precisely because of his terminal status.

Shaun was diagnosed with multiple myeloma – a type of bone marrow cancer – in April 2023. A year later, he was reminded of his life insurance policy in a letter from Aviva, reminding him to renew the plan to which he had contributed for 15 years. years which was to end this month.

Hoping to spend “one last vacation” with his family, he decided to call to renew his wife’s policy and cash in his own. Instead, he says he was told he couldn’t apply because of the 18-month rule.

“So if I had terminal cancer six months earlier than when I was diagnosed, they would have paid?” he said. “It’s absolutely ridiculous.

“The payout won’t be worth much, but it would have been something. I’m penalized too late for getting cancer. I could die next week. I want this fixed before I die. I’m positive and I’m trying to continue, but I know it’s unbeatable.”

Fears of other people falling across the divide

Despite multiple requests, Aviva has not responded whether customers with older policies have been informed of the decision to end the 18-month time limit for terminal illness compensation, or whether customers are contacted individually to be notified before the 18 month deadline on their policy. to inform them that they may wish to change or renew their plan because a major element of it is expiring.

Aviva said that “we communicate with our life insurance customers at the start of the policy and approximately three months before the cover ends”, and that “the terms and conditions of the policy remain the same throughout the duration” . The company added that “information about the terms of the policy, including the 18-month terminal illness benefit clause, was clearly communicated in the documents provided to the customer when taking out the policy.”

Ms Long-Bailey expressed fears that others on older policies could fall foul of the gap between the end of the availability of terminal illness benefits and the expiration of their life insurance policy.

The MP said: “I would be grateful to MEN readers if there are others in Salford and Eccles who have a similar, older policy with Aviva and if they have been in contact with them for evaluate their new options.

“I will be writing to Aviva regarding Shaun’s case and to ask them to reconsider their decision, as well as for others who find themselves in a similar situation with older policies like this.”

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Aviva said that “the 18 month clause has been included so that the acceleration of the death benefit does not actually extend the term of the policy beyond what has been chosen and fixed”.

Aviva says its decision to remove the 18-month rule from its policies has led to an increase in premiums and that it is “unable to modify old policies if we make changes, because each policy is designed and priced for each customer” .

An Aviva spokesperson said: “We are very sorry to learn of Mr Pinkney’s diagnosis. We understand the seriousness of his condition and understand that this must be a very worrying time for him.

“Life insurance is designed to provide a payment to the customer’s beneficiaries if the customer dies during the term of the policy. Terminal illness insurance is a feature that allows the customer to receive a life insurance payment sooner, if a specialist doctor confirms that he is unfortunately expected to live less than 12 months.

“Although life insurance cover is available until the end of the policy, under Mr. Pinkney’s policy, terminal illness benefit is not payable during the last 18 months of the policy This is explained in the documents sent to customers when taking out a policy.

“This 18-month period is included to ensure that any benefits are paid while the policy is still in force. As Mr. Pinkney’s diagnosis occurred during the last 18 months of his policy, we are unfortunately not in able to pay their terminal illness benefit claim.

“Unfortunately, due to Mr. Pinkney’s current poor health, we are unable to cover him with a new life insurance policy.”