life assurance cancellation

S

Steve75

Guest
Hello all

if you cancel a life assurance policy because you are taking out a new one, do you lose everything that was put in for the previous 10 yrs on the old policy?

Thanks
Steve
 
Is this a mortgage protection life asssurance or general life assurance policy? In either case (but especially in the former) you should put the new policy in place before cancelling the old one. To cancel the old one write to the life assurance provider (and mortgage lender if applicable) to inform them and cancel any direct debits etc. Unless there is some savings plan attached to the life assurance policy (not great products in general) then you don't get any money back. You have not "lost" this money as until now it was paying to assure/insure the risk of you kicking the bucket.
 
Term Life Assurance is like car insurance or house insurance in that you only get money out of them in the event of a claim.
 
Just thinking ... if you have paid a full year of premiums in advance then you may get a pro-rata refund of premiums if you cancel before the year is up.
 
ClubMan said:
Just thinking ... if you have paid a full year of premiums in advance then you may get a pro-rata refund of premiums if you cancel before the year is up.
Click to expand...

Good point - in fact you will get such a refund in such circumstances.
 
thanks lads....got confirmation that i will get that refund
 
You must log in or register to reply here.
Back
Top