How to Cancel Your Insurance Policy?
Insurance Policy gives you extra protection if things go wrong. However, you may decide that you no longer want or need your insurance policy. There are two different categories to cancel the Insurance Policy. The description is given below:
Cancelling During the Cooling -Off Period
If you have an insurance policy and then you alter your mind and decide to cancel it then. By law after getting the insurance policy cooling-off period is 14 days and life insurance has a 30-day cooling off period, within the cooling-off period you can cancel your insurance policy due to any reason.
The cooling-off period starts when insurance policy begins or when you receive your policy documents. In the case of cancellation within Cooling-off Period, you will get premium you have already paid. A small amount of it can be cut down by the company as administration charges. The company may take a little time to return to your premium.
Some insurance companies longer cooling-off time to check your cooling-off time read your documents thoroughly if cooling-off time is not mentioned then immediately contact the company.
If you have decided to cancel your insurance policy then contact the company as soon as possible. Cancellation during the cooling-off period is not applicable to travel insurance that remains less than a month.
Cancelling After the Cooling-Off Period
If you get your insurance policy and after the cooling-off period you decide to cancel your policy then you must read your policy or contact to the insurance company. Mostly companies refund the premium if you do not make any claim during this period. Administration charges are cut down from your premium.
If you decide to cancel your policy on the basis that the other insurance company is offering you a better deal and cheap policy then wait until the period of renewal of policy and then switch. It is benefited from you.
Cancelling a direct debit does not cancel your insurance policy. If you do this you will still owe your insurer the premiums. You must contact your insurer to cancel the policy.
Some companies renewed the policies automatically every year you have to check that without your permission it should not be renewed.
When a policy is cancelled before its expiration date a return premium may be owed to the insured. The return premium is generally calculating using a wheel calculator. The return premium is calculated by calculating the unearned premium and then subtracting any unpaid premium and penalty for early cancellation.
In this document, we have described what is cancellation policy? Which method is best? And each and every case of policy cancellation.
It is good for the policy users that if they have a good deal or cheap policy from the other company then they have to cancel their policies immediately if the cooling-off period is not expired. If the cooling-off period has passed then you have to wait until your policy to be renewed, rather than to cancel it right away.