There are many reasons why people choose to cancel their life insurance cover. It may be the monthly costs are too high, your dependant’s are grown and you don’t feel they need the cash windfall, or you may have found cover from a competitor at a better rate.
In a tough economic climate, households must look at all of their outgoings and try to see where cutbacks can be made. But the fact that a family may be struggling to pay their life insurance premiums could also be an indication of how important the cover actually is. The financial toll of the death of a parent in such circumstances could be devastating, making life insurance all the more important.
Life insurance is generally cheaper the younger you buy it, so cancelling with the hope of setting it back up when times are financially better may not be the best option. And even when you do look to restart it in the future, factors such as any changes to your health can make the premiums go even higher.
If you are finding your premiums too high, then click here to talk to a broker about switching your existing cover and see what can be done. These services are free with no obligation so always look around before pulling the plug completely on your life insurance cover.
Outside of your initial cancellation period when you set the policy up, you should phone or write to your insurer with your intent to cancel. Generally you will be allowed to do this at no extra cost, but remember that the cover will no longer apply. You will generally not be entitled to any refund of premiums you have already paid. If you pay your premiums by direct debit, you should also contact your bank to cancel the direct debit.
Speak to a consultant if you’re thinking of changing your premiums who can advise of costs across the market and tell you what saving you could be making!