How Do I Cancel My Business Life Insurance Policy?

Let’s Talk Money and Mortgages – WIS Business Protection

Abdul: Hi everyone! Welcome to another episode of Let’s Talk Money and Mortgages. My name is Abdul, and I’m a Senior Protection Advisor within WIS Business Protection.

Today’s short video is about options available if you’re looking to cancel your business life insurance policy.

Q1: Is cancelling a business life insurance policy straightforward?

Abdul: Yes, essentially it is. Here’s what you need to know:

• Term assurance policies have no commitment periods or charges.
• Cancellation is usually done via a letter from the employer, signed accordingly.
• Sometimes the trustees of your relevant trust plan may also need to sign.

Q2: What about the cooling-off period?

Abdul:

Most policies come with a cooling-off period of 14–30 days.

Cancelling during this period results in a full refund of any premiums collected.

Q3: Is cancelling always the best option?

Abdul: Not necessarily.

Premiums are based on your age and underwriting at policy inception.

Therefore, it’s wise to consider other options before cancelling.

Q4: What scenarios might lead to cancellation?

Abdul: Several scenarios could prompt you to consider cancelling:

• Closing down your limited company or business
• Moving to a new employer or starting a new business
• Leaving the country

Q5: What is the Conversion Option?

Abdul:

Converts your business policy to a personal policy.

Advantages:

• Premiums remain the same.

Requirements:

• Amendment deed to transfer ownership from business to individual.
• New direct debit details for your personal account.

Disadvantages:

• You lose the terminal illness benefit.
• Terminal illness typically pays out if diagnosed with less than 12 months to live.

Q6: Moving to a New Employer or Business

Abdul:

If you start a new job or business, the policy can be transferred to the new employer.

Advantages:

• Premiums remain the same.
• Terminal illness benefit is retained.

Requirements:

• Amendment deed for ownership change.
• New direct debit details.

Key Point:

If your new employer offers their own group insurance scheme (e.g., death-in-service benefit), you may be covered by that instead.

We will create a separate video on employer-provided schemes.

Q7: Leaving the Country

Abdul:

Policies remain valid as long as premiums are paid from a UK bank account.

Payouts can only be made to a UK bank account.

It’s the beneficiaries’ responsibility to arrange access to these proceeds.

Q8: Final Advice

Abdul:

Having a personal policy has several advantages.

Always explore your options before cancelling a policy.

Speak to us to understand implications and alternatives.