Life policies - dual insurance?

archie9uk

Is it possible to claim back premiums that I paid for a life insurance policy that I failed to cancel when a new policy started, under dual insurance law? I thought my financial adviser was canceling the policy for me and I ended up paying for two policies (through the same company) for several months before realising. The policy was decreasing term mortgage cover, if that makes a difference.

It is about five months since I canceled the policy, but I have just heard about dual insurance law in relation to home insurance and wondered whether it would apply in this case. Any help would be greatly appreciated.

stephenni1971

Dual insurance law does not cover Life insurance - as you can have multiple policies running and in the event of claim all will pay out.

There are pretty tight rules on issuing a 'replacement policy' ie: one designed to take over from the other.

In the case of changing insurers, most important is that there is always some overlap on the policies so that you are never left without cover. In my own case I always advise the customers the old one should be cancelled when the new one starts and first premium has been taken from bank account. However the policy needs to be cancelled by the holder - not the adviser.

In your case as you were sticking with the same insurer they should have been able to go for a seamless transfer from old to new, but only if they were told that the new policy was a replacement, and not additional cover. You need to look through the information your adviser gave you at the time, on the proposal there will be a section covering existing policies, and asking what is to be done with them on acceptance ( ie: if you mark replace old one will cancel, if not then both will run on ).

dunstonh

As stephenni says, dual insurance doesnt apply as you can have as many as you like and most people do have multiple plans to cover multiple needs as a single plan is rarely the best option.

I thought my financial adviser was canceling the policy for me and I ended up paying for two policies (through the same company) for several months before realising.

However, as you used an adviser, whilst the adviser cannot cancel the policy, they are meant to tell you when you should do it. So, there may be some scope there.

Also, as its with the same insurance company, they may well refund the premiums on the old one once they are informed. It is most goodwill on their part but they will often do it.