You shouldn’t need to cancel your life insurance policy, you took it out for a reason, didn’t you? And it’s true that generally speaking life insurance premiums increase as you age, so if you purchased your life insurance policy a long time ago it may be prudent to hold onto it!
However there are some circumstances where it may make more sense to cancel your life insurance policy. Read on to learn what to do if you want to cancel your life insurance policy
How to cancel your life insurance policy in Australia
Simply write a plain language letter informing your life insurance company of your choice, and either:
• Send it to them via registered post
• Fax it to them, and request a written confirmation of fax received
• Email it to them with a read receipt request, or email it to them and ask for a confirmation email back when it is received.
Should I get legal or financial advice before I decide to cancel my life insurance policy?
Some people advise you to get legal or financial advice if you wish to cancel a contract within the cooling off period. This is not necessary for life insurance contracts – the laws are designed so that you don’t have to go to the extra expense of getting legal advice.
Will I get all my money back if I cancel my life insurance policy?
How much money you get back can vary according to the insurer. Some will refund the entire amount, some will refund the entire amount less any government charges, and some will also charge you an administration fee to cancel within the cooling off period.