Why you should cancel an insurance policy
After taking out an insurance policy, there are Insured persons have two options contractual relationship with your insurer to terminate the contract: On the one hand, the contract can be terminated – like any contract- under Compliance with the legal deadlines informal and on the other hand, it is possibleto revoke the contract concluded with certain insurances at a later date and therefore to have itunwound.
If the policyholder decides to terminate his contract with the insurance company, this is usually accompanied by considerable financial losses. Cancellation means that the insured person is only entitled to the so-called surrender value of his insurance contract. In most cases, this is tantamount to a loss of assets for the insured, since the surrender value is significantly lower than the premiums already paid in by the insured. In addition, the usually very high acquisition costs are not reimbursed by the insurance companies and considerably increase the already large financial loss.
The situation is different with the so-called reversal of an insurance policy. This offers many advantages over the classic termination. For example, a reversal significantly reduces or eliminates the expected loss. Contrary to the cancellation mentioned earlier, in the case of insurance reversal, you stand a good chance of getting back all the premiums you have already paid. These also include all premiums and rates set aside by the insurance provider for commissions and acquisition costs. In addition, after a reversal, customers still receive a so-called compensation for use in the form of interest for the provision of capital.
Accordingly, the advantages of reversing insurance policies as opposed to terminating them are quite significant. So if you value your assets, you should have your insurance policies checked with regard to reversal and always prefer revocation to termination, if possible.
But what if the contract with the insurance company has already been cancelled? Here, too, the right of cancellation offers surprising possibilities. Even if it may sound paradoxical, the revocation and an associated reversal of insurance policies is still possible even after a cancellation or the expiry of an insurance policy.
Contact us. We will be happy to review your case!
How we support landlords on the subject of tenancy law
- Technical examination and assessment of your individual case
- Advice on the tax aspects of your insurance policies
- Individual advice on existing contracts and various scenarios for action
- Advice in case of damage
- Advice on the subject of misadvice by the insurance company or the insurance broker
- Advice on revocation in the event of insufficient information on the subject of revocation by the insurer
- Assertion of claims arising from insurance contracts
- Reversal of contracts
- Advice and representation in judicial and extrajudicial disputes with the insurer
- Representation in actions for repaymentby insurance companies
Support on the subject of leasing & vehicle rental
- Legal contract review of insurances
- Risk managementconsulting
- Tax advice on various investment products
- Comparison of investments and insurance offers
- Planning and advice on investment strategies together with our network of financial experts
Helpful articles on the subject of tenancy law:
- Underwriting of life insurance policies
- Federal Supreme Court strengthens insurers in the reversal of policy models
- Legal restriction to the surrender value in the event of revocation of life insurance policies is contrary to EU law
- Empty state guarantee: Why the Riester pension is not safe
- Riester pension via LBS inadequate advice
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You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.
About the author
PhD, MBA, MM
Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
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