Life insurance protects you against the uncertainties of life and offers financial protection to your loved ones in your absence. There is no dearth for insurance policies and insurance providers often come up with attractive insurance policies with new benefits. At times, people want to cancel their insurance policy because they are not happy with it or because they found a better policy for a cheaper price. While one can always cancel their policy, it can be quite time consuming and tricky. Here is what you need to know about cancelling your life insurance policy.
Reason for Cancelling
Before cancelling your life insurance policy, it is important to analyse the reason as to why you are cancelling your policy. Because the moment you cancel your life insurance policy, you lose your life insurance cover. Cancelling your life insurance policy to opt for a better policy is one of the valid reasons to cancel your life insurance policy.
Every life insurance policy has a cool off period or grace period that allows the insured to assess their insurance needs and to ensure that the life insurance policy they have is the right one. If an individual cancels their policy within the grace period or cool off period, they will get a refund of all the premiums until then and won’t be charged any additional fee.
How to cancel your life insurance policy?
- The insured has to contact the life insurance provider and convey their wish to cancel the policy
- Usually, the insurance provider provides alternate options and solutions to the insurer
- If the insurer still wishes to cancel the life insurance policy, they can download the cancellation form from the bank’s website or obtain it from the branch office and fill up the details
- Once the cancellation form is submitted to the bank, the bank will get on to the process of cancelling the policy
- No refunds will be made if the policy is cancelled outside of the cooling off period.