Sample Insurance Cancellation Letter (+ Word Template)

An Insurance Cancellation Letter is an official document sent to an insurance company when a policyholder no longer wishes to pay premiums or enjoy the coverage of their policy. In most cases, insurance companies do not restrict or prohibit your right to cancel a subscription, but you will need to read through your policy before drafting this letter.

When you decide to cancel your policy, the first place to start is by checking your policy for cancellation provisions. Some insurers provide the exact steps of the cancellation process and the person’s contact information to who you should send your cancellation letter.

The following are some tips, a template, and a sample letter to help you cancel your insurance policy.

When Should You Cancel an Insurance Policy?

People take out insurance coverages to protect themselves, their businesses, or their loved ones from certain risks, such as car accidents, fires, and theft. Canceling an insurance policy is never a decision to be made on a whim, especially in today’s risky world.

Some of the reasons you may want to cancel your policy include:

  • You believe you need different coverage.
  • You think you are paying too much for insurance.
  • You are unhappy about how the insurer has handled past claims.
  • You are moving, and your insurer does not offer policies in your new location.

What to Include in an Insurance Cancellation Letter

If you believe you have a legitimate reason to cancel your policy, you can file a cancellation notice with your insurer. It should include:

  • The insurance company name, the correct contact person’s name, and department
  • Your name, policy number, and coverage period as stipulated in the declarations page of your policy
  • The date you would like the policy to be canceled.
  • A statement that the insurer is no longer authorized to withdraw premiums from your account
  • A request for a refund of unused premiums
  • A request for written confirmation of the cancellation by the desired date

Writing Tips

Your insurance policy will usually include instructions on how to cancel your policy, including to whom the letter should be addressed. In addition to this, consider the following pointers when drafting your Insurance Cancellation Letter:

  • Mention that you would like to cancel the policy in the first paragraph
  • State clearly that you would like to stop premium payments
  • Always provide details such as your policy number and dates to facilitate easy tracking of your records.
  • Keep your letter short and to the point.
  • Avoid sending handwritten letters to prevent miscommunication in case your handwriting is illegible.
  • Use a professional tone.

Insurance Cancellation Letter (Format)

{Date}

{Insurance Company Name}

{Insurance Company Address}

{City, State, Zip Code}

Re: Cancellation of Policy

Dear {Mr./Mrs./Ms. Last Name},

Insured: {Your Insured Name}

Policy Number: {Insert Your Policy Number}

Policy Period: {Insert Start and End Dates of Your Coverage}

I am writing to request a cancellation of the policy captioned above to be effective as of {date you wish the cancellation to take effect}. I no longer authorize {company name} to directly withdraw any future premiums from my account, {account number}.

The reason for the cancellation is {state cancellation reasons}. Please return any unused premium to {insert address} and send me a written confirmation of this cancellation within {period}.

If you have any questions, contact me at {contact information}.

I look forward to your prompt attention to this matter.

Sincerely,

{Your Name}

{Telephone Number}

Sample Insurance Cancellation Letter

24 February 2031

Insured Ltd.

209 King’s Lane

Philadelphia, PA 20019

Re: Cancellation of Life Insurance Policy

Dear Sir or Madam,

Insured: Mary Higgins

Policy Number: ILLIP/003

Policy Period: 30 January 2020 to 30 January 2035

I am writing to formally request that the referenced insurance policy be canceled, effective 26 February 2031. Please stop charging premium payments to my account, AC 008/21, immediately and send me a written confirmation of the cancellation in the next 30 days.

I would also like a return of my premiums and the cash value of my policy. If you have any questions, you can contact me at maryhiggins@email.com.

Thank you for your prompt attention to this matter.

Sincerely,

Mary Higgins

Insurance Cancellation Letter (Word Template)

Insurance Cancellation Letter (Word Template)

Bottom Line

Insurance companies will differ in how they process cancellations. It is crucial to always speak to an agent or read through your policy before drafting your Insurance Cancellation Letter to determine what exactly is expected of you. When drafting it, keep your letter professional, detailed, and to the point. Provide the reader with enough information to locate and cancel your policy.

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