Life Policy

Yonkers420

Hi All,

Having been a long time lurker on the forum, the advice i have received recently has confirmed how valuable the forum is!

May be embarrassing myself her but... I seem to remember seeing somewhere that cancelling a life policy requires a rec report or letter to confirm reasons why it has been cancelled. (Im talking about a term assurance product)

I have never actually done a single one of these, i dont suppose anyone could provide an example one please or confirm where i can find what needs to be included?

thanks

benjaminfabi

Hi

I think if you are recommending that the client cancels a pure protection policy, then it would be very sensible to document that advice and issue the justification to the client prior to the cancellation. But I don't see that it's a requirement.

If you are recommending a replacement policy then you absolutely have to consider the suitability of the existing cover and factor it into the recommendation for the new one. You should also prominently display a warning that the existing policy should not be cancelled until the replacement is on risk.

Yonkers420

Thanks Ben