We all have different situations in life, whether that be financially or lifestyle. In which case, some people will need life insurance more than others. But what if you decide you no longer need life insurance?

Whatever your reasons, there are some things you should know about cancelling a life insurance policy.

Reasons to cancel a life insurance policy

Before we discuss how to cancel your life insurance policy, let’s first consider why you would want to do this. 

Most of us purchase life insurance simply because we believe that it is important to protect our loved ones in case something happens to us – either through illness, accident or old age. 

We may also buy life insurance to ensure that our children and grandchildren receive a financial inheritance after we die.

But there are some specific situations where you may want to consider cancelling your policy. 

Here are some reasons why you might want to cancel your life insurance:

  • You no longer need cover - your circumstances may have changed from when you first took out the policy. For example, you may have bought a policy to cover a mortgage which you've now paid off.

  • You found a better deal - While you may have found a good deal with your current provider, this doesn't mean you have to stay with them. Another provider may offer a better policy with cheaper premiums, in which case you can switch providers.

  • Your job changes - If you're changing jobs, you may want to cancel your existing policy and replace it with a different provider. After all, your employer may offer better benefits or lower rates.

  • You get married or divorced - If you've recently gotten married or divorced, you may want to change some aspects of your current policy, or cancel it entirely.

  • You have children - If you have kids, you may want to make sure that your family is taken care of in case the worst happens. This may lead to you reviewing your cover with us, and potentially looking into family life insurance.

  • You can no longer afford cover - Everyone's financial situation is different, this might mean you can no longer afford to pay premiums each month for cover. For more information, please see - What to do if you can’t afford your life insurance.

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How to cancel your life insurance policy

It's usually possible to cancel a life insurance policy, 30 days from taking out cover, and to receive a refund for any premiums you have paid so far. This is called the ‘cooling off period’ 

Outside of this window, you are still able to cancel the policy, but you will not receive a refund for your payments so far.

If you decide to cancel your policy, then you'll need to take certain steps to do so. This includes contacting your insurer and informing them of your decision.

You'll also need to provide basic details, such as your policy number, proof of identity and address. Your insurer can then cancel any direct debits made towards your monthly premiums.

Should I cancel my policy?

Cancelling your life insurance policy is a simple process, and usually just requires a phone call to your insurer. 

Before you cancel your policy though, you may need to consider whether you want to replace your plan with a new one.

If you will be looking into new cover, it is generally better to do this before canceling an existing plan, just in case there are complications or delays to getting a new plan in place.

You might also choose to cancel your policy if you think that you don’t need it anymore. If this is the case, speaking to an adviser could be beneficial to see if there is something more appropriate for your circumstances. 

Alternatively, you might opt to cancel your policy if the cost of paying premiums outweighs the benefit of receiving payments. If this is the case, you could simply look into switching to a more competitively priced policy.

The main drawback to cancelling your policy is that you'll lose any premiums that you have paid so far, as well as the protection you had in place. 

Life Insurance from leading brands

  • Zurich
  • Legal And General
  • Aviva
  • AIG
  • Beagle Street
  • LVE
  • Royal London
  • Vitality Life
  • Virgin Money
  • Budget Insurance
  • Scottish Widows

Can my insurer choose to cancel my policy?

In some cases, your insurer can cancel your policy. If you don't keep up with paying your monthly payments, your insurer may decide to stop covering you altogether. However, if this does happen, they won't just cancel your policy straight away - they'll give you notice.

In many cases, your insurer will ask you to pay off any outstanding debts, such as unpaid premiums , before cancelling your policy. If you're behind with making repayments, your insurer may choose to cancel your policy without giving you a chance to catch up.

If you are experiencing financial difficulties, and are at risk of missing premium payments, please get in touch with your insurer as they may have options available to you.

They may also cancel your policy if you've broken the terms and conditions of your policy. For example, you may have withheld information - like a medical condition - during the application process.

Buying a new policy

If you decide to purchase a new policy, you need to decide between purchasing term or whole life insurance. 

Term insurance provides temporary coverage for a limited period of time. Learn more about term life insurance.

Whole life insurance offers long-term coverage and lasts right up until you die.  Learn more about whole life insurance.

Both types of policies offer certain advantages and disadvantages. For instance, term insurance is cheaper than whole life insurance. But it doesn’t cover you for the long haul, thus you aren’t guaranteed payout when you die.

In addition, you need to consider your personal situation when choosing which policy to go for. For instance, you need to decide if you want to insure your family members too.

It is also worth noting that a new policy will require new underwriting at the time of application. This means that you will be disclosing information about your current health and lifestyle. Learn more about underwriting.

Because of this, you may want to consider speaking to an adviser to see if switching your cover is the best solution for your situation.

Speak to the experts...

Give our advisers a call today.

Our team of friendly and professional advisers are on hand to help with any questions you may have regarding Life Insurance.

The advisers can also make recommendations tailored to your current situation and will research the market on your behalf, ensuring you secure the cover you need and supporting you every step of the way. 

01392 43 61 93(Monday to Friday, 9am - 5.30pm)

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