(iii) Family income policies and mortgage protectionU.K.
9(1)M1 The following provisions apply to any policy which is not a qualifying policy apart from those provisions, and the benefits secured by which consist of or include the payment on or after a person’s death of—U.K.
(a)one capital sum which does not vary according to the date of death, plus a series of capital sums payable if the death occurs during a specified period, or
(b)a capital sum, the amount of which is less if the death occurs in a later part of a specified period than if it occurs in an earlier part of that period.
(2)A policy falling within sub-paragraph (1)(a) above is a qualifying policy if—
(a)it would be one if it did not secure the series of capital sums there referred to, and the premiums payable under the policy were such as would be chargeable if that were in fact the case, and
(b)it would also be one if it secured only that series of sums, and the premiums thereunder were the balance of those actually so payable.
(3)A policy falling within sub-paragraph (1)(b) above is a qualifying policy if—
(a)it would be one if the amount of the capital sum there referred to were equal throughout the period to its smallest amount, and the premiums payable under the policy were such as would be chargeable if that were in fact the case, and
(b)it would also be one if it secured only that capital sum so far as it from time to time exceeds its smallest amount, and the premiums payable thereunder were the balance of those actually so payable.
Marginal Citations
M1Source—1970 Sch.1 5