The 30 day cooling-off period
When you take out a life, critical illness or income protection policy, you have 30 days to change your mind. If you cancel in that window, the insurer refunds any premiums you have paid. The period usually starts when the policy begins or when you receive your documents.
Use those days to read your policy schedule and check the details are right, including your name, cover amount, term and any exclusions.
Cancelling after the cooling-off period
You can still cancel later. Contact your insurer, confirm you want to cancel, and the cover ends. You stop paying from that point. Term life insurance has no cash or surrender value, so you get nothing back for the years you paid. Some whole of life policies with an investment element may have a surrender value.
Cancelling your direct debit without telling the insurer is not the best route. The policy will lapse eventually, but you may get letters chasing missed payments in the meantime.
Checks before you cancel
Life changes can make a policy feel unnecessary, but your health and age now could make new cover more expensive later. Before you cancel, think about whether you might need protection again.
- Do you still have a mortgage or other debts?
- Would anyone struggle financially without your income?
- Is a replacement policy accepted and in force?
- Is the policy written in trust, and do the trustees know?
- Could reducing the cover work instead of cancelling?
Switching to a new policy
Many people cancel because they have found new cover. Keep the old policy until the new one is accepted and has started. If the new insurer applies an exclusion or a loading you did not expect, you can then decide whether to switch at all.
Also check whether your existing policy had features you would lose, such as a lower price locked in when you were younger, or cover for a condition that has since developed.
How Hi Tomorrow can help
If you are thinking of cancelling, talk to us first. We can look at whether cutting the cover, shortening the term or changing the type would bring the cost down while keeping your family protected.
If you do want to switch, we arrange the new cover and tell you when it is safe to cancel the old policy. Acceptance and terms are subject to the insurer's underwriting.