Only use this form if:

  • You want to cash-in and cancel all of your policy
  • Your policy is not a pension or an FMISA
  • You’re based in the UK
  • You have a UK bank account in your name(s) that the money can be paid into
  • You’re the policyholder

Do not use this form if:

  • You want to take some of your money and leave the remainder invested
  • You’re a pension customer
  • You’re an FMISA customer
  • You live outside of the UK
  • You don’t have a UK bank account in your name to pay the money into
  • The policy is held in trust, or has been assigned to someone that isn’t the policyholder

If this form isn’t suitable for your request, please call us to find out what to do next.

Things to consider

Before you carry on there are things that you must consider. Once you’ve cashed in your policy you won’t be able to change your mind, so it’s important for you to take time to consider whether this is the right choice for you.

ReAssure can’t provide you with financial advice or a personal recommendation. We recommend you get independent professional advice from a Financial Adviser if you’re unsure what to do. A Financial Adviser can make a personal recommendation based on your individual circumstances and the options available to you. If you don’t have an adviser, you can find one at www.unbiased.co.uk. You may have to pay for any advice you receive.

If you’re looking for free and impartial help and information, you can visit the MoneyHelper website at www.moneyhelper.org.uk or call them on 0800 138 7777.

We also have some further guidance around the risks of cashing in policies during the coronavirus pandemic here.

What you need to think about first

    • You should consider whether your policy includes cover that will be lost, before you decide to give it up.  You can find out more about any cover your policy gives you in your annual statement.
    • Life assurance policies are long-term contracts. Any early surrender means that policy values are often less than the premiums paid in. This is because charges for setting up the policy are usually taken from the premiums in the early years.  If you decide to replace this policy with another, you may incur set up charges again. Replacing any life cover that this policy provides could also potentially be more expensive, as the cost of cover is based on age.
    • Keep your money safe: It’s becoming more prevalent that people with lump sums of money are being targeted by bogus investment scams. Before you do anything with your money, you should read the free information available at scamsmart.fca.org.uk and moneyhelper.org.uk/en/money-troubles/scams/a-beginners-guide-to-scams to help you avoid being the victim of a scam.
    • Tax: If a chargeable event gain occurs, we’ll send you a chargeable event certificate within three months of your payment. This will explain what you need to do.

Income tax may need to be paid on some or all of any investment gain this policy has made. This only applies if the gain is also a ‘chargeable event gain’ under HMRC rules. A chargeable event gain is where the total money paid out is more than the money paid in. No tax will be due if the total of your current annual taxable income, plus the total amount of the gain, is within the basic rate tax bracket. However, if you are a higher rate taxpayer or the gain when added to your income makes you liable for the higher rate of tax, the gain will normally be taxable.
If you want to understand more about the tax implications of this policy, HMRC have a help sheet on their website called Gains on UK life insurance policies, or you can speak to an adviser.

  • Means-tested benefits: If you receive any means-tested benefits you should be aware that your surrender payment may affect your eligibility to receive these.
  • Endowment policies: Some endowment policies can be sold to a third party on the Traded Endowments market for a potentially higher figure than what you’d receive if you surrendered the policy. There are a number of firms operating in the UK who can provide this service and details of them can be found in the financial press and online. We strongly recommend you seek independent financial advice if you’re considering selling a policy on the Traded Endowments Market.
  • With-profits policies: Regular bonuses are added to your sum assured (and sometimes your existing bonuses), based on you paying all your premiums when they are due. If you surrender your policy early these guaranteed amounts will not apply and we’ll work out new values. The amount you receive may be less than the sum assured and bonuses. Please note that valuations given by Legal & General to customers before they came to ReAssure included final bonuses. Final bonuses are not guaranteed and will be reduced if you cancel your policy early.