We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Life Insurance cancellation resulting in £200 penalty
chuckie56
Posts: 1 Newbie
I took out a decreasing term life policy 2 years ago, and I recently cancelled it as this was now covered with my new employment package.
The company who advised me to take this out are saying that if I cancel in the first 48 months they will charge me £200 as the commission they earnt will in part be reclaimed back from them.
Does anyone know if this is legal?
I've no problem with them earning commission and paying for the advice, but theyve already earnt £300 commission from the policy so is it really representative for them to charge £500 in total for arranging a basic decreasing term life assurance?
Is this treating customers fairly?
The company who advised me to take this out are saying that if I cancel in the first 48 months they will charge me £200 as the commission they earnt will in part be reclaimed back from them.
Does anyone know if this is legal?
I've no problem with them earning commission and paying for the advice, but theyve already earnt £300 commission from the policy so is it really representative for them to charge £500 in total for arranging a basic decreasing term life assurance?
Is this treating customers fairly?
0
Comments
-
There is another current thread discussing similar circumstances here:
https://forums.moneysavingexpert.com/discussion/30604300 -
chuckie, you need to tell us more.
Tell us about the agreement you signed. What fee was waived and replaced by the commission?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards