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.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Cancelling my life assurance direct debit

markjamesallen
Posts: 33 Forumite

I am insured with Phoenix Life. Now I'm retired my premiums are too expensive and the benefit not needed. I have cheaper life assurance with another provider which now meets my needs.
I notice that Legal and General cover people for 60 days after missing two direct debits before cancelling the policy. I can't find anything on the Phoenix website that suggests anything similar. My question is:
Should I write to Phoenix and cancel my policy or should I cancel my direct debit without contacting them in the hope that they will cover me for some weeks into the unpaid period.
I notice that Legal and General cover people for 60 days after missing two direct debits before cancelling the policy. I can't find anything on the Phoenix website that suggests anything similar. My question is:
Should I write to Phoenix and cancel my policy or should I cancel my direct debit without contacting them in the hope that they will cover me for some weeks into the unpaid period.
0
Comments
-
Best to be direct, honest and use belt and braces. Cancel the DD & write (email should do) to cancel the policy.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung0 -
Contact them (creating an account on their portal is pretty straight forward) and cancel the policy via the portal. Then once any final payments have been taken you can cancel the DD.
Cancelling the DD without cancelling the policy could mean they put missed payment markers on your credit file. So do it the right way around.0 -
Contact them to cancel. Cancelling DD could show in your credit history as missed payment when you have not informed them.Life in the slow lane0
-
Cancelling the DD without cancelling the policy could mean they put missed payment markers on your credit file. So do it the right way around.0
-
Your credit file might be the least of your worries.
An insurance policy is a contract, and while you generally have a right to cancel the contract, simply stopping the payments does not cancel the contract, it just puts you in breach of the contract. In turn the insurer will eventually cancel your policy for non-payment. The cancellation will be recorded - and whenever you take out any insurance policy for the rest of your life (home insurance, car insurance, pet insurance etc etc) you will have to say "yes" to the "have you ever had insurance cancelled?" question. That will make it difficult and expensive to get insurance in future.
That would certainly be the case of you simply cancelled the direct debit on a car or home insurance policy. I'm not sure whether non-payment on a life insurance policy would be recorded in the same way - but I would want to be very confident that it wasn't before I simply cancelled the direct debit without contacting the insurer first.0 -
Your credit file might be the least of your worries.
The cancellation will be recorded - and whenever you take out any insurance policy for the rest of your life (home insurance, car insurance, pet insurance etc etc) you will have to say "yes" to the "have you ever had insurance cancelled?" question. That will make it difficult and expensive to get insurance in future.0 -
It is always possible they will just reinstate the DD anyway.
0 -
badmemory said:It is always possible they will just reinstate the DD anyway.
0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards