Previously when a cancellation request was received, the policy was cancelled from the next monthly payment cycle, and in some instances, this can include a frequency loading. This process improvement was driven by our desire to put the client and adviser at the centre of our business.
Three things you need to know about AIAA life insurance cancellations:
- We will amend the way we process cancellations with effect from 4 June 2022. Cancellations will be processed with an effective date which is usually the day after we receive the request by phone call or email, or the day we receive the request by post.
- Cancellations will include pro-rata premium refunds if applicable. These will be paid back to your client, whilst adhering to all Superannuation and Anti Money Laundering laws and rules.
- From the effective date, we will also remove any frequency loading.
The main difference to the existing process is that your clients will now receive a refund of any premiums they have paid in advance. In addition to the daily pro-rata refund, clients paying annual, half-yearly and quarterly premiums will also benefit from the frequency loading removal on cancellation. Please note that cancellations could have a commission and in particular claw back implications.