For UK Intermediary or Investment Professionals only

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FOR IFAs, MORTGAGE BROKERS AND PROTECTION ADVISERS

A new option for clients
who have decided to let their
life insurance policy lapse

When a client has already decided to let a policy lapse, there may be another option. We Buy Life Policy helps eligible policyholders explore selling their existing term life policy instead of walking away with nothing. 

 Not every policy will be eligible, and selling a policy will not be suitable for every client. 

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CLIENT SCENARIOS

When might this be relevant?

This may be relevant when a client is thinking about letting a term life policy lapse, often because the original reason for taking out the cover has changed

Mortgage repaid, reduced or restructured

MORTGAGE

A policy may have been taken out to protect a mortgage that has since been repaid, reduced or restructured.

Children financially independent

FAMILY

A client may no longer have the same financial dependants they had when the policy was first arranged.

Premiums feel less relevant or affordable

AFFORDABILITY

Some clients continue paying for cover that no longer feels aligned with their current circumstances or priorities.

 Personal circumstances have changed 

LIFE CHANGES

 A significant change in a client’s circumstances may mean the original reason for taking out the policy no longer applies. 

This will not be suitable for every client. In many cases, keeping the existing cover in place may still be the right decision.

HOW IT WORKS

A clear 5-step process

Once an initial enquiry is made, WBLP reviews the policy information and explains the next steps directly to the client. Every case remains subject to eligibility, documentation and further assessment.

1
Initial enquiry

The adviser or client provides initial policy information through the evaluation tool or by speaking with  We Buy Life Policy. 

2
Indicative review

 We Buy Life Policy reviews the information provided and considers whether the policy may fall within the initial criteria.

3
Discussion and documentation

The process, implications and required documentation are explained, supported by a robust vulnerability and suitability assessment. Relevant identity, policy and premium-payment evidence is gathered.

4
Checks and firm offer

Verification and policy checks are completed. Where appropriate, a firm offer, purchase agreement and supporting terms are issued.

5
Assignment and completion

 The Deed of Assignment and ownership-transfer process are completed, subject to the required documentation and cooling-off process. The client is paid in full within 48 hours of the Deed being received and all checks being passed. 

This is a simplified explanation of the process and does not guarantee a particular outcome or timescale.

ILLUSTRATIVE CLIENT SCENARIO

What this may look like in practice

This illustrative scenario shows the type of situation in which an adviser may introduce the option. Individual circumstances and outcomes will vary, and every case remains subject to eligibility and assessment.

Illustrative Scenario example - Meet John
ILLUSTRATIVE SCENARIO

Meet John, 55

Mortgage repaid and has decided to let the policy lapse.

 John took out a term life policy while he still had a mortgage. His mortgage has since been repaid and his circumstances have changed. John has decided to let the policy lapse, so his adviser introduces him to We Buy Life Policy to understand whether another option may be available.

Type of policy
Term life insurance
Original policy purpose
Mortgage and family protection
Current situation
Mortgage repaid
Next step
Initial evaluation and eligibility review
Potential outcome
John receives a lump sum payment of around £900 from We Buy Life Policy, equivalent to approximately 16 monthly premiums. He also avoids paying future premiums on a policy he has already decided to let lapse.

Illustrative example only. Not every policy will be eligible, and selling a policy will not be suitable for every client.

INITIAL EVALUATION

Check whether a client's policy may meet the initial criteria

Provide the initial policy details below to help WBLP understand whether the policy may fall within the current scope. Any result or indication is preliminary and remains subject to eligibility, documentation and further assessment.

Policies written in trust are outside the scope of the current process. Not every policy or client will be eligible.

 
INITIAL ELIGIBILITY

Not every policy or client will be eligible

We Buy Life Policy considers each policy individually. An initial evaluation may help establish whether a policy falls within the current criteria, but any indication remains subject to further information, documentation and assessment.

COMMON QUESTIONS

What advisers ask us most

What types of policy may be considered?

 We Buy Life Policy considers eligible term life insurance, whole-of-life and joint life policies. Every policy is reviewed individually, and any initial indication remains subject to the policy details, supporting documentation and further assessment. 

Are policies written in trust eligible?

No. We Buy Life Policy cannot accept policies written in trust. If the policy structure is unclear, advisers can contact We Buy Life Policy to discuss the case before proceeding.

Is this suitable for every client?

No. Selling a life insurance policy will not be suitable for every client. In many cases, keeping the existing cover in place may still be the right decision. Each case is considered individually.

What happens to the policy after it is sold?

Once the legal transfer process has been completed, ownership of the policy transfers to We Buy Life Policy. The client gives up any future rights or benefits associated with the policy. This also means that their family members and estate will not retain any future rights to it.

Will the client's beneficiaries still receive the policy benefit?

No. Following completion of the transfer, the policy benefit will no longer be payable to the client’s beneficiaries, family members or estate. Clients should fully understand these implications before proceeding.

Does We Buy Life Policy provide financial or tax advice?

 No. We Buy Life Policy does not provide financial, legal or tax advice. Clients should seek independent professional advice where appropriate before making a decision. 

How can an adviser introduce a client?

Advisers can submit an initial evaluation using the online form or contact the intermediary team directly to discuss whether a case may be suitable before providing detailed client information.

Can a client change their mind?

A client is not required to proceed following an initial enquiry or indication. The formal process includes the relevant documentation and applicable cooling-off provisions, and the intermediary team will explain the process and timelines before completion.