A letter requesting the termination of an insurance policy is called an insurance cancellation letter. You are free to cancel your insurance policy at any time during the policy period. Now, some might wonder why can't we cancel it over the phone or simply walk into the office of the insurance company and inform one of the executives to cancel it for you. To clear that doubt, one must understand that an insurance policy is a contract (remember signing the papers!) and to withdraw from the contract, a written notice of cancellation needs to be sent to the insurer. Cancellation letter sample for a home, life or a car insurance remains the same, only the body of the letter varies depending on the type of insurance.
A couple of very important things that one needs to remember before writing the letter. Firstly, only the policyholder reserves the right to cancel the policy which means that the policyholder is the only entity who can make a written request. The insurance policy cancellation letter must be addressed and signed by the policyholder only, or else the request will be rejected. Many a times, more than one person is insured under a policy, so do any of them reserve the right to cancel the insurance policy if need be? No, not everyone has the right to do so, so then who does in such cases? An example would make it more clear. If you and your sister are insured on the same policy and the policy is in your name, then it's you who holds the right to cancel the policy and not your sister. Secondly, you must go through the terms and conditions of your policy to determine when are you eligible to cancel the policy. Usually, you have up to 14 days from the policy effective date to cancel the insurance without penalty.
How to Write an Insurance Cancellation Letter?
Given below are the points to remember when writing an insurance cancellation request letter:
You'll now see how simple letter writing is. Given below is an insurance cancellation letter template and it could be used for any sort of insurance cancellation.
Insurance Cancellation Letter Sample
Given below is an insurance cancellation letter sample wherein a specific life insurance policy is being canceled.
That was all about how to format and draft an insurance cancellation letter. Just make sure you use the letter etiquettes as this is a strictly formal letter. You could use the aforementioned insurance cancellation letter format and sample as a general format and alter the body of content if required, depending on the information you'd like give and take from the insurance company. With such a simplified format you shouldn't find yourself wasting or spending much time on writing an insurance cancellation letter.
A couple of very important things that one needs to remember before writing the letter. Firstly, only the policyholder reserves the right to cancel the policy which means that the policyholder is the only entity who can make a written request. The insurance policy cancellation letter must be addressed and signed by the policyholder only, or else the request will be rejected. Many a times, more than one person is insured under a policy, so do any of them reserve the right to cancel the insurance policy if need be? No, not everyone has the right to do so, so then who does in such cases? An example would make it more clear. If you and your sister are insured on the same policy and the policy is in your name, then it's you who holds the right to cancel the policy and not your sister. Secondly, you must go through the terms and conditions of your policy to determine when are you eligible to cancel the policy. Usually, you have up to 14 days from the policy effective date to cancel the insurance without penalty.
How to Write an Insurance Cancellation Letter?
Given below are the points to remember when writing an insurance cancellation request letter:
- Call the insurer to confirm the address where you need to mail the letter and double check the policy number.
- Inquire if you are entitled for a refund or if there is any balance that you owe on the policy based on the cancellation date. For any unused premiums that you already paid for, request a refund and if you owe a balance on the account then, enclose a check with the letter (mention the amount in the letter as well).
- Begin your letter with the date, address of the insurance company and the policy account number.
- Use polite but firm language to notify your insurance company of your decision to cancel the policy.
- Request a correspondence from the company confirming that the cancellation is accepted and has been put into effect.
- The insurer is no longer authorized to charge your bank or credit card for monthly premiums after the expiration date; this must be stated in the letter.
You'll now see how simple letter writing is. Given below is an insurance cancellation letter template and it could be used for any sort of insurance cancellation.
| Date Name of the Dept. Head/Cancellation Dept. Name of Insurance Company Company's Mailing Address City, State, Zip Code To, Name of the Person/Whom it May Concern Subject: Cancellation of Insurance (Policy No.) Mention that you are making a request to cancel the policy with effect from (date). Request for a confirmation of cancellation. Request for a refund of unused portion of the policy (if any). State that the insurer must stop charging the bank for any further payments. Thank the insurer for considering the request. Sincerely, (Your Signature) (Your Full Name) (Your Mailing Address) (City, State, Zip Code) |
Insurance Cancellation Letter Sample
Given below is an insurance cancellation letter sample wherein a specific life insurance policy is being canceled.
| 14th September, 2010 Cancellation Department Alliance Insurance Inc. 1145 Vermont Avenue New Orleans LA 70152 To, Peter Mason Subject: Cancellation of Life Insurance Policy (Policy No. : 75892735) This is to inform you of my decision to cancel my life insurance policy with effect from 18th November, 2010. I would appreciate if you could send me a written confirmation within 30 days, confirming that the cancellation has been accepted and put into effect. I also request you to refund the unused portion of my policy premium and stop charging my bank account for payments of monthly premiums. Thank you and I hope you will consider this request and put it into effect as soon as possible. Sincerely, (Signature) Steve Watson 114 Salisbury Avenue Endicott Washington WA 99125 |
That was all about how to format and draft an insurance cancellation letter. Just make sure you use the letter etiquettes as this is a strictly formal letter. You could use the aforementioned insurance cancellation letter format and sample as a general format and alter the body of content if required, depending on the information you'd like give and take from the insurance company. With such a simplified format you shouldn't find yourself wasting or spending much time on writing an insurance cancellation letter.
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