Will I get anything back if I cancel my cover?

Published on November 26th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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Cooling periods will differ from insurer to insurer

Before you sign on an insurance policy you will be informed about the terms and conditions of your policy. You will have to read these carefully to understand how certain process work and what can make your policy void. Insurance policies differ and come with a free look period which gives you up to 10 days to review your insurance policy.

However, when it comes to cancelling your policy altogether you need to review the length of the cooling period on your policy. You will be able to receive a full refund if you cancel within the 30-day cooling off period. If it happens that you cancel your policy after paying a full year’s fee, but decide that you want to cancel mid-year, you will only receive some of your premiums back. This is why it would be beneficial for you to read up on your insurers refund policy and cooling period to avoid disappointment.

Lurking cancellation fees

Cancellation fees are another factor that you will have to consider before cancelling your policy. If you cancel your policy after the free look period or cooling period, you could face cancellation fees which will cost you. Some insurance policies might come with additional penalty fees that can make your transition from one policy to another difficult. You could look at losing all the premiums you have paid on your policy if you anytime when it comes to other policies. Doing your research on these fees before you sign on a policy will help you avoid losing hundreds of dollars that could be spent elsewhere.

A few things you need to ask yourself

No matter what the reason is for you to cancel your policy, there are a few handy questions that you can ask yourself before cancelling your policy:

  • Are you going to be switching to a new policy or are you cancelling your insurance altogether?
  • Have you considered the possibility that you will need life insurance cover?
  • Have you informed your insurer in writing that you want to cancel? This means filling out the necessary documents that cancel out your cover.
  • Have you cancelled automatic payments set up with your bank or insurer
  • Have you followed up with your insurer to find out if the cancellation of your policy has been successful?

Not having any form of life insurance can put you and your loved ones at risk. Although circumstances might have pushed you to cancel your life insurance policy it is important that you find another policy that will meet your needs accordingly by comparing quotes and feature.

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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.

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