Updated: September 17, 2019

How to Cancel Your Life Insurance Policy

Need to cancel a life insurance policy? Find out how to do it here and get expert advice about alternative cover

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: September 17, 2019

Life insurance is important when you want to make sure your family is financially secure should the worst happen. However, despite this there are times when you may want or need to cancel your life insurance policy.

When you can cancel, and how to cancel your life insurance, should be pretty straight forward. But it’s important to think carefully about your decision before you go ahead and cancel the policy.

Before calling your provider to cancel your insurance, we would always advise speaking with an insurance expert about your needs and situation.

Talk to one of the independent advisors we work with on 0808 189 0463 or read on to find out if you can cancel your insurance and what to expect when you do.

In this article we discuss:

Can I cancel my policy?

Yes, it’s your life insurance policy so you can cancel it, in most cases at any time.

If it’s a new policy and you’ve changed your mind after making the agreement and initial payment, there’s typically a 30-day cooling off period where you can cancel your life insurance with no problems or questions.

Be aware, however, that in some cases, there may be a small fee taken from your refunded initial payment. This could be to pay for the first few days or weeks cover or other named costs detailed in your agreement. In addition, if you cancel your life insurance but decide to take a new policy out again in the future, you could face higher monthly payments simply because you’ll be older than you were when you took out your original policy.

Even though you can cancel your insurance at any time, you should think very carefully before you do. If the reasons you took out your life policy cover have changed and you no longer need to ensure your family are left financially stable after you die, then that can be a good reason for cancellation. But you may simply need to adjust the cover due to a change in circumstances, and this may be a better route.

If you still need life insurance but are struggling to afford it, speaking with a life insurance advisor can prove useful. They can help you find a policy that is perhaps more suitable and affordable or help you speak with your provider and discuss a lower premium for a period, before returning to your current policy at the same cost.

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When can I cancel my life insurance policy?

As we stated above, in most cases you can cancel your life insurance policy at anytime once you’ve taken it out.

Cancellation is mainly free of charge if you do so in the cooling off period. There may also be no additional costs for cancelling your life insurance later on  but you likely won’t be entitled to any refund.

Circumstances where people may want to cancel their life insurance policies include:

  • If your situation changes and you no longer need it.
  • During the first 30-day cooling off period, because you’ve changed your mind.
  • Because a cheaper and better-value life insurance option has become available.
  • You’re going through a difficult financial period and want to reduce your outgoings.

If you’re considering cancelling your life insurance but want to seek advice before making a final decision, call 0808 189 0463 or make an enquiry to talk to one of the independent life insurance experts we work with.

They will be able to answer your questions and help you understand all the implications of your decision, both now and into the future.

How do I cancel my policy?

Now you know life insurance can be cancelled and when you can cancel your life insurance policy, you will want to know how to cancel it.

Considering that in some cases it’s quite a big decision, the process is relatively simple:

  • Phone up your provider to cancel it.
  • Ensure your life insurance direct debit is cancelled.

Remember, your life insurance policy won’t be cancelled if you only stop the direct debit; you have to contact your provider and inform them of your decision to cancel it.

However, even though the physical cancellation of your life insurance policy is straightforward, in many cases it’s not something you should do without thought and consideration and often, professional advice.

If you think your policy is no longer right for you, but you still need some cover. Or, you’re struggling financially and want to reduce your costs, speaking with an experienced life insurance advisor, like those we work with can be a good idea.

Call 0808 189 0463 or make a quick online enquiry.

What happens if I cancel my policy?

Even if you speak with a life insurance expert and you still wish to go ahead with your life insurance policy cancellation, you might want to know what happens next.

In most cases, not a lot. You cancel your life insurance policy, pay any fees associated with a cancellation and you are then no longer covered.

You will only be eligible to have your insurance payments refunded if you cancel during the cooling-off period.

You will of course be able to buy a new life insurance policy in the future – in most cases that’s true even if your lifestyle has changed. But it will most likely be more expensive than your previous policy because life insurance gets more expensive with age.

If you think you may take out a new life insurance policy in the future after cancelling it now, this is something you should consider carefully.

Speak with a life insurance expert

If you’re considering cancelling your life insurance policy but would like to know more about how to do it, when you can do it and if you should do it, it could help to speak with a fully qualified and experienced life insurance advisor, like those we work with.
Call 0808 189 0463 or fill in our online form. We’ll match you with an advisor experienced in life insurance. The service is free and there’s no obligation to purchase.

Ask A Quick Question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

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FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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