calidana

I recently found out we are being ripped off in what we pay for these (1000E a year for life and 700E a year for the house). Also found out that I do not even need the life insurance for the mortgage - I was under the impression that I did?
We pay both premiums in 4 x 3 monthly payments per year. I would like to cancel both before the next payment comes out at the end of next month.

It seems the policies run from July to July. I do not have access to the details and small print associated with these at the moment.

My question is, can I legally cancel them now and do I run the risk of some form of fine or embargo?

Fredbargate

It depends on which company the policies are with

calidana

The life insurance is with Pastor Vida (company linked to the bank which may make things tricky?) and the house insurance is with Axa.

bobd22

I cancelled mine last year all be it at the end of the year, not sure if you will have to pay for the full year or not? One thing though that does seem to be the case in Spain you require to give 2 clear months notice that you don't wish to re new certainly I had to do that.

Fredbargate

That is why I asked which company the policies were with.

I have cancelled house and vehicle policies at a moments notice with Ibex on a Spanish property and on a Spanish vehicle but I am not sure about Axa and Pastor Vida.

missile

I would suggest you ask the bank to advise and cancel them

chrisjolly

Depends on the companies but most insist on a two month notice of cancellation. Notify your bank too.

jonboy

I cancelled our buildings insurance and legal defence insurance with Groupama Hogar and Depsa respectively, just prior to the renewal date by cancelling the direct debits with the bank. I have had letters offering me the option to renew and warning me that I will not be covered for the risks. I even had one letter that suggested I might like to take out life insurance instead!!
18 months down the line, no real action and both policies state I must notify them of cancellation "two months prior to the end of the contracted period".

Lynn R

I think that's the key point - with every insurance policy I've ever come across here in Spain, it has been necessary to give the required amount of written notice before the end of the year following the policy being taken out - but not to cancel the cover mid way through the year. If someone tried to do that, I am not sure what lengths the insurance company would go to to ensure that the remaining premiums for the rest of the year were paid.

Fredbargate

Lynn this is not required by Ibex. Instant cancellation and a refund for the remaining period.

Lynn R

I'm not disputing that, just saying the "no cancellation part way through the year" is far more common.

The OP really needs to check his policy documents or the initial contract he signed to make sure what the terms and conditions say.

It might be galling to have to pay the rest of the year's premiums, but less costly in the long run than dealing with embargoes or having his credit record affected - which might or might not happen, as I said I don't know how far the companies would go to collect what they're owed.

crookesey

If the OP has dependents, what is the problem with protecting their interests in the event of the worst happening? I am presuming that the sum assured is high or the insured is no spring chicken, as €100 per month is a high premium for reducing term life cover.

I recall many years ago talking a very reluctant client into taking out a £100,000 life policy costing £10.00 p/m. He died of a heart attack a few years later and his widow reported me for causing him undue worry regarding the affordability of the premiums, this is following her banking the cheque.