Hello,
The sum in question does not significantly impact me, so I would not worry about this for myself. However, the lack of transparency and potential implications for others prompt me to seek legal assistance from an Australian lawyer.
Last July (2023), I received a letter from Resolution Life offering an Extra Payment for my closed Open Ended Lifestyle Protection Plan. While I did everything asked of me, there were delays in making the extra payment.
I took the matter to the Australian Financial Complaints Authority, AFCA. During the process, AFCA asked me what I thought was a fair and reasonable outcome. My response to them was as follows:
“Resolution Life has told me I am entitled to AUD 6,612.23. In addition to this amount, I am asking for an explanation as to why I am not entitled to payment on other plans that were terminated at the same time and are, therefore, eligible under the information provided on FAQs page 2. Specifically, "Any Whole of Life or Endowment Plan that had a withdrawal payment made between 1 January 2020 and 21 April 2023 may be eligible for an extra payment." (I note this says MAYBE, but what are the criteria?)”
Resolution Life has since paid the AUD 6,612.23 they state I was entitled to. However, they have not explained why I am not entitled to payment for other plans. Due to the nature of the policies, I am reliant upon the information provided by Resolution Life, so I can not say if I am entitled to further payments.
The last communication I received from AFCA was on 16 May 2024. They wrote, "Your case is currently waiting to be allocated to an AFCA case worker. This can sometimes take a number of weeks."
Because I live in Finland, not Australia, this payment is taxable. The amount of tax depends upon the nature of the payment. I see two possibilities.
1. Despite Resolution Life's explicit denial, there may have been errors in the previous calculations. The returns on the policy payments did not align with my expectations. When I declared these payments to the Finnish tax authorities in previous years, I was charged capital gains tax on termination payments. There's a likelihood that the Finnish tax authorities would treat this payment in a similar manner.
2. Alternatively, the additional payment could be classified as a gift. Given the unconventional nature of insurance companies making such payments, I wonder why it was calculated and disbursed solely for one of my policies. I understand that the gift tax in Finland can be as high as 15%.
I appreciate any input on this matter. Thank you.
The sum in question does not significantly impact me, so I would not worry about this for myself. However, the lack of transparency and potential implications for others prompt me to seek legal assistance from an Australian lawyer.
Last July (2023), I received a letter from Resolution Life offering an Extra Payment for my closed Open Ended Lifestyle Protection Plan. While I did everything asked of me, there were delays in making the extra payment.
I took the matter to the Australian Financial Complaints Authority, AFCA. During the process, AFCA asked me what I thought was a fair and reasonable outcome. My response to them was as follows:
“Resolution Life has told me I am entitled to AUD 6,612.23. In addition to this amount, I am asking for an explanation as to why I am not entitled to payment on other plans that were terminated at the same time and are, therefore, eligible under the information provided on FAQs page 2. Specifically, "Any Whole of Life or Endowment Plan that had a withdrawal payment made between 1 January 2020 and 21 April 2023 may be eligible for an extra payment." (I note this says MAYBE, but what are the criteria?)”
Resolution Life has since paid the AUD 6,612.23 they state I was entitled to. However, they have not explained why I am not entitled to payment for other plans. Due to the nature of the policies, I am reliant upon the information provided by Resolution Life, so I can not say if I am entitled to further payments.
The last communication I received from AFCA was on 16 May 2024. They wrote, "Your case is currently waiting to be allocated to an AFCA case worker. This can sometimes take a number of weeks."
Because I live in Finland, not Australia, this payment is taxable. The amount of tax depends upon the nature of the payment. I see two possibilities.
1. Despite Resolution Life's explicit denial, there may have been errors in the previous calculations. The returns on the policy payments did not align with my expectations. When I declared these payments to the Finnish tax authorities in previous years, I was charged capital gains tax on termination payments. There's a likelihood that the Finnish tax authorities would treat this payment in a similar manner.
2. Alternatively, the additional payment could be classified as a gift. Given the unconventional nature of insurance companies making such payments, I wonder why it was calculated and disbursed solely for one of my policies. I understand that the gift tax in Finland can be as high as 15%.
I appreciate any input on this matter. Thank you.
