Life insurance could be ideal for securing the financial future of your family/loved ones in the event of your death. However, circumstances can change, and what was once a necessary expense may no longer be required.
Before you take any action, it's essential to understand the implications of cancelling your policy. In this article, we’ll cover everything you need to know before deciding, including the factors to consider, the consequences of cancelling, and how to cancel your policy.
So, if you're thinking about cancelling your life insurance, keep reading to make an informed decision.
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Can I cancel my life insurance policy?
You can cancel life insurance at any time, but there are some things to consider before doing so.
Remember, cancelling your life insurance policy means that your cover will end. If you no longer need cover, cancelling the policy may be the best option for you. But it is always worth speaking to your adviser/broker/insurer first to ensure you have thought of all scenarios.
Additionally, if you still need cover, but the plan isn’t right for you anymore, then it's worth making sure you have a new policy in place before cancelling the old one. This is especially important if you have dependants who rely on your income as a gap in cover could make them more vulnerable. A new plan may also be more expensive as you will be older and may have additional health conditions.
If you are looking to cancel your policy because you can no longer afford it, then please get in touch with your insurer first as they may have options available to help make sure you don’t lose your cover whilst going through a difficult time.
Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.
Reasons to cancel your life insurance policy
It's essential to understand the consequences of cancelling your policy before taking action. Common reasons for cancelling include:
- Your needs have changed, and you no longer require cover
- The premiums have become too expensive
- You're getting divorced
- You're not satisfied with the performance of the policy
- You have found a better and more affordable policy
If you are facing financial difficulties and can no longer afford your premiums, please contact your insurer as soon as possible to stop the plan from lapsing automatically. They may have options available that allows you to keep the cover in place.
How do I cancel my life insurance policy?
Cancelling your policy may vary depending on the insurer. Generally, the simplest way to cancel is to contact your insurer and request cancellation. In some cases, you may be able to cancel online via the insurer's website or mobile app. If this is the case, you will need to follow the steps outlined by your insurer.
There are no fees to cancel a policy, but you will also not receive a refund for any premiums paid outside of the 30-day cooling-off period.
If I cancel my policy, do I get my money back?
If you’re thinking of cancelling your policy, please note that most companies have a 30-day cooling-off period. This means that if you decide to cancel your policy within 30 days of receiving both the notice and the policy - you could be refunded any premiums paid.
Once this cooling-off period has passed, unfortunately no refunds will be made if you decide to cancel your policy.
Please note: The insurance products offered by Cavendish Online have no cash-in value at any time. If you stop paying your premiums your cover will stop, your policy will end, and you will receive no benefit. If you have not claimed before the end of your chosen policy term, the policy will end, and no benefit will be paid.
If you are facing financial difficulties and can no longer afford your premiums, please contact your insurer as soon as possible to stop the plan from lapsing automatically. They may have a scheme that allows you to keep the cover.
Factors to consider before cancelling life insurance
Before making the decision to cancel your life insurance, consider all the factors involved. Here are some of the most important ones:
- Your age: Younger people tend to pay lower premiums, so they may not be able to get the same cover with a new policy.
- Your health: If your health has changed since you took out the policy, you may be able to get better cover with a different company. Alternatively, you may find that new premiums have been increased to take into account any new health conditions.
- Your family’s financial needs: Consider your family and/or loved ones and how your death may affect their finances.
Where to get advice
Making the decision to cancel your life insurance policy is a big one and it’s important to make sure you have all the facts before taking any action. It's best to speak with a knowledgeable adviser who can help you understand your options and make an informed choice.
Cavendish Online is dedicated to helping you make the best decisions for your long-term financial well-being. Contact us today, and our team of advisers can help you understand and assess whether cancelling is the right decision for you.
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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.
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