Trustee permission to cancel life insurance?

Rico2168

I recently cancelled my life insurance & critical illness with legal & general.
They won't cancel it without the trustee agreeing it can be cancelled, although acknowledged if I cancelled the survey debit I just wouldn't be covered.
My question is if this is common practice, as it's the first time for me.
I took out the insurance to protect my family, I chose the policy, I paid for it & signed for it & have been paying the direct debit. The trustee my partner has no involvement.
Why should they have to agree I can a policy I took out myself? More importantly what if I was no longer with the trustee? Or couldn't afford the policy? This allows no flexibility.
I feel this is poor practice & would be curious other people thoughts as this has put me off ever using it recommending legal & general in future.

dunstonh

Is the policy in trust?

Its not normal for policies not in trust (as there are no trustees). However, if yours is in trust, then it is the requirement of the trustees to look out for the interests of the beneficiary.

Do also be aware that cancelling the direct debit is actually just cancelling method of payment. If the trustees decide that you should not cancel the policy, you would be liable for a) the missed premiums to get it reinstated or b) the sum assured of the life assurance should there be a claim that the insurer would not pay out.

I feel this is poor practice & would be curious other people thoughts as this has put me off ever using it recommending legal & general in future.

What has L&G got to do with it? Any policy can be placed in trust. The provider is not the issue here. It seems daft to blame them when this is a legal matter.

Weighty1

Presumably the policy is in trust so on this basis, you alone are no longer the legal owner of the plan, the trustees are and it is for this reason that L&G require the permission of the trustees to cancel the plan.

This would be the same with all insurers.

Rico2168

Thank you to both of you fur explaining this.
The forms [when checking] from the broker had the beneficiary (my partner) sign as a trustee also.
I understand now, it wasn't well explained when cancelling.
I still feel this is a bit poor legally in cases where partners split or the insured party chooses another or additional beneficiary, as the trustee holds all the power with no consequence.
I do appreciate it's a legal matter.

Rico2168

Thank you to both of you fur explaining this.
The forms [when checking] from the broker had the beneficiary (my partner) sign as a trustee also.
I understand now, it wasn't well explained when cancelling.
I still feel this is a bit poor legally in cases where partners split or the insured party chooses another or additional beneficiary, as the trustee holds all the power with no consequence.
I do appreciate it's a legal matter & not L&G at fault so clearly would like to rescind my comment about the company.

Rico2168

Thank you to both of you for explaining this.
The forms [when checking] from the broker had the beneficiary (my partner) sign as a trustee also.
I understand now, it wasn't well explained when cancelling.
I still feel this is a bit poor legally in cases where partners split or the insured party chooses another or additional beneficiary, as the trustee holds all the power with no consequence.
I do appreciate it's a legal matter & not L&G at fault so clearly would like to rescind my comment about the company.