Will I get anything back if I cancel my cover?

Last updated on November 25th, 2021 at 02:58 pm by Bill Tsouvalas

Cancelling your life insurance policy can happen for various reasons; there might be some life changes that require a new policy, the premiums have become expensive, or you are not satisfied with what your policy is currently offering. Whether you get a full refund will be determined by your insurers free look period to opt out of your policy. This are the additional things that you need to consider.

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.