How to Cancel Your Life Insurance Policy
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 life insurance policy?
- When can I cancel?
- How do I cancel?
- What happens if I cancel my policy?
- Speak to a life insurance expert
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.
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.