How Do YOU Cancel a Clients Previous Policy?

[AnonymousOne]

So you have read over the policy you know what they have, they have already qualified for a less expensive policy and now they need to cancel the previous?
I have called the company, canceled the bank draft and faxed in a written cancellation.
Which is preferred by you and why? Do you always call? Are there some companies that you know take a written request?

 

[moonlightandmargaritas]

I have called the company, canceled the bank draft and faxed in a written cancellation.
Which is preferred by you and why? Do you always call? Are there some companies that you know take a written request?

You are opening up yourself to tremendous liability by canceling people's insurance policies - it's a really bad idea!

Coach 'em on a phone call, draft a letter for 'em or whatever, but DON'T DO IT FOR THEM.

 

[Norwayguy]

So you have read over the policy you know what they have, they have already qualified for a less expensive policy and now they need to cancel the previous?
I have called the company, canceled the bank draft and faxed in a written cancellation.
Which is preferred by you and why? Do you always call? Are there some companies that you know take a written request?

You don't , you can not legally cancel the policy the customer must do it. Having said that you can definitely coach them through the call or what is more likely a written request must be sent and you can draft it for the clients signature.

 

[indiana260]

Tell them to call the company and ask to be taken off eft/automatic payments. If the company requires written request then write it for them and have them sign it.
Tell them they will be getting a bill for monthly or quarterly or whatever. Then say
" you do not have to pay it. Your coverage will lapse in about 30days. The reason we do it this way is because if you were to die prior to the policy termination date your family would still get the DB."

 

[Agentguy5]

I carry a pre=typed letter stating everything the client needs to cancel, and then have them sign it...

 

[Biggin]

Tell them to call the company and ask to be taken off eft/automatic payments. If the company requires written request then write it for them and have them sign it.
Tell them they will be getting a bill for monthly or quarterly or whatever. Then say
" you do not have to pay it. Your coverage will lapse in about 30days. The reason we do it this way is because if you were to die prior to the policy termination date your family would still get the DB."

Don't do ^this^ if you want your client to get cash value. If there is cash value (or if you're in a "return of premium" state) you need to draft a letter that states something to the effect of " CANCEL AND SEND ANY UNUSED PREMIUM AND CASH VALUE TO:

Agnus Oldlady
address
certificate/policy #
signature

 

[indiana260]

Agreed. I always tell them to ask for their cash value to returned as well as any unearned premium. I still tell them to ask to be taken off automatic Bill. This request the call value. If they call they get the old company trying to convince them to keep it .

 

[AnonymousOne]

Sorry for the delay.
When I was stating I have canceled a policy I assumed it was understood that...I have called with the client to cancel, stopped the eft with client etc.