Cancelling your life insurance
You can cancel your life insurance policy in 3 simple steps.

First and foremost, you need to understand the implications of cancelling your life insurance policy. Once you do this, you will no longer be covered if anything happens to you, regardless of any premiums that were paid prior. This means your beneficiaries will not receive any sum of money in the event of your passing.
To cancel your life insurance policy, you must complete a letter of cancellation. First up, check if your insurer has a template for this on their website. You can do this by simply searching for "cancel life insurance policy [provider name]". If they've got a template, download and fill it out.
If they don't have a template, here's what your letter of cancellation needs to include:
Based on the contact information your insurer has available on its website; email, post or fax your letter of cancellation to them. To ensure this has been received, it's wise to follow up with a phone call a few days later and to request an acknowledgement of your intent to cancel and whether or not this has been actioned by the insurer.
It's important to be aware of what cancelling your life insurance means for both the now and the future. To be sure this is the right choice for your needs, it can help to consider the below.
The only time you will receive a refund is if you're cancelling within your cooling off period.
If you're feeling a bit on the fence about whether or not cancelling your life insurance premium is the right move for you, consider some of these alternatives.
A key reason for cancelling life insurance is the expense of the policy. If you still want life insurance cover but are looking for a more affordable option then it can be smart to get some new quotes, compare your options and switch providers.
If you're struggling to pay your premiums but don't feel ready to completely cancel your life insurance policy, then asking to suspend your policy can be a good option. This may also be referred to as pausing your policy. Essentially, it lets you put your cover on hold for a period of time — this time varies by insurers — and therefore pauses your premiums. Typically, policies can be paused for 3, 6 or 12 months.
It's important to note, pausing is not to be confused with freezing your premium. This refers to fixing your premium at a specific cost to keep it from rising over time. The terminology sounds similar but be aware, they're completely different actions.
Oftentimes, there is room in your policy to reduce cover which will in turn, reduce your premium. Take a look at your policy and see if you've opted for any extras that no longer suit your budget. For example, you may find you've taken out optional cover for; trauma, total and permanent disability or income protection. Each of these would bump your premium up so if you're willing to cut them out, you can cut down your premium.
Another way to reduce your cover (and premium) is to reduce your sum insured. You might opt to do this if it's been a while since you originally took out cover and have substantially reduced your debts, therefore reducing the sum needed in the event of your passing.
Yes, insurers do have the right to cancel your policy if you do something that's against their guidelines. This can include:
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