Cancelling the debit order is the easy part. What follows it is where the cost usually sits.
Depending on the contract, leaving a financial product can bring an exit charge, a lower surrender value, lost guarantees, tax consequences, exposure to market timing, or restrictions on where the money is allowed to go next.
The words get used loosely, so pin them down. Ask for the contractual calculation and a current rand quotation rather than a general explanation. A surrender value is the amount available if a qualifying policy is ended, and it may look nothing like the premiums paid or the figure someone had in mind. Some modern investments carry no formal exit charge at all and still involve transaction costs or tax.
None of which means a cost is a reason to stay. It means the decision has to compare three things: the current arrangement, the proposed destination, and the consequences of doing nothing. Be especially careful when replacing insurance, where new underwriting or fresh exclusions can matter a great deal more than the fee does.
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Before signing any cancellation or transfer, ask for a dated exit value and list what would be lost, charged, taxed, delayed or newly assessed. Keep that list with the written replacement comparison.
Ask your advisor
- What will I receive after every deduction if I leave now?
- Which benefits or protections cannot be restored?
- What is the reason for changing, and how long would any benefit take to outweigh the cost?
Do not cancel existing cover until new cover and its terms are confirmed where replacement is intended.