Penalty to cancel my life insurance through. a broker

philainch

I'm looking to cancel a life insurance policy I took out through a broker a year ago and set up a new policy elsewhere that is much cheeper, but not sure whether I will have to pay a penalty, just wondered if anyone has any experience of this and any advise would be greatly appreciated. Thank you

kingstreet

Did you formally agree to any condition that means you had to pay a fee if the policy is cancelled and the broker has part or all of his commission claimed back by the life office?

If you signed such an agreement, you may have to make such a payment. If you didn't, you won't.

Check through your documentation to see if you have such an agreement.

philainch

Have looked through all the paper work and found nothing, however I do vaguely remember the broker mentioning this when I took out the policy, I don't remember signing anything to that effect

dunstonh

If you did it on fee basis with the commission offsetting the fee then there would normally be a clawback in the first 4 years which could see you having to pay the difference. If you did it on commission basis, you shouldnt have to cover the clawback unless you signed an agreement saying you would.

ACG

Call your broker up and let him/her know your cancelling - they will tell you if you have signed anything. If they say you have, ask for a copy.

Ive never had any policies cancelled in the clawback period but id prefer to know about it just so i can make provisions...just a nice thing to do