Written by 
- The Savvy Promise
At Savvy, our mission is to empower you to make informed financial choices. While we maintain stringent editorial standards, this article may include mentions of products offered by our partners. Here’s how we generate income.
What happens when you want to change mid-policy?
The short answer to this is that it will depend on your insurer. When you first took out your policy they would have given you a document called the product disclosure statement that gives you a detail description of the inclusions and exclusions of your policy. Some insurers will allow you to cancel mid-policy, but you may forfeit your premiums. Other insurers will require that you tell them in writing why you want to cancel your policy and pay back the premiums that you have paid up until that point in time. This could possibly take between 24-48 hours or more to be processed.
Read the terms carefully
Before cancelling your policy, it is vital to read the terms that come with your policy to see if there are any break fees or if you will be able to change policies before its expiration date. Some insurance policies may come with a 14-day cooling-off period that you need to keep in mind.
You may also want to weigh your options whether it would be worth switching your policy by comparing. Make sure to check if the new policy you want to take comes with the same features for a better price. If you are paying more, then check that the features are worth the price. Keep in mind to find an insurer who will be able to cover you for your situation before switching to avoid any disappointments.
What to look out for when choosing a new policy?
- Will it adequately cover your needs?
- Can you be able to afford the premiums?
- Are there any ongoing fees and can I afford them?
- Will your insurance cover you for pre-existing conditions you may have?
- Will you be able to increase your cover if need be to cover your loved ones?
- Is it the best policy that the market has to offer?
Be aware that the insurer can cancel your policy without you requesting
The only time where an insurer will cancel your policy without requesting to do so is if you are in breach of your policy agreement. Before you take on your new policy it is essential to ask your insurer about this to avoid any surprises. This should also be included in the policy disclosure statement. Some of the common circumstances under which your policy will be cancelled are:
- Not paying your premiums
- Failing to disclose vital information that has been requested by the insurer
- Fabricating information
- You make a fraudulent claim
An insurer will notify you in writing when they plan to cancel your policy. You can also ask them to explain why they are cancelling your policy if you do not understand the written statement that they have given you.
Did you find this page helpful?
This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.
The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.
Savvy is partnered with Compare Club Australia Pty Ltd (AFS representative number 001279036) of Alternative Media Pty Ltd (AFS License number 486326) to provide readers with a variety of life insurance policies to compare. Savvy earns a commission from Compare Club each time a customer buys a life insurance policy via our website. We don’t arrange for products to be purchased from these brands directly, as all purchases are conducted via Compare Club.
Savvy does not compare all life insurance policies or providers currently operating in the market. Any advice presented above or on other pages is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an insurance policy.
For any further information on the variety of insurers compared by Compare Club or how their business works, you can read their Financial Services Guide.
