Can You Cancel an Insurance Policy

Can You Cancel an Insurance Policy - You as an insurance payer does it know how to cancel the insurance policy? Or do you know what documents to bring for the cancellation of the insurance policy? If these two questions still make you confused then this time I will try to help you with this article.
Can You Cancel an Insurance Policy
Can You Cancel an Insurance Policy

Can You Cancel an Insurance Policy

You can cancel your life insurance policy at any time – but please keep in mind that there is no cash value. You have a 30 day cooling period to change your mind. If you want to cancel in this period, then the insurance will refund the premium you have paid. The cooling period starts at the last of:

  1. Our day tells you when your policy will start.
  2. The day you receive your policy document.

The law allows 15 days as a free-look period from date of receipt of the policy document for policy holders. The policyholder is allowed to cancel the policy during this era and obtain a refund

Types of policies

Free-look period is out there just for life assurance policies. For insurance policies, the term should be a minimum of three years.

Cancellation request

Once the policy holder is convinced that the policy terms don't match his or her expections, they ought to communicate their intention to cancel the policy in writing. Some insurance companies prescribe a typical form for cancellation of policy during the free look period. Policy details, date of receipt of policy document, reason for cancellation and agent details must be mentioned within the application.

The process

On receiving the cancellation request, the insurance firm will get in-tuned with the policyholder to understand the explanations for cancellation and check out to supply solutions. However, if one still wishes to cancel the policy, the insurance firm will need to process the request and issue refund

What is refunded?

After the refund application process is completed and approved, the premium refund is calculated after deduction of the following:
Pro-rated risk premium for the amount on cover
Medical examination expenses incurred by the insurance firm 
Stamp duty charges

ULIPs refunds

When returning a Ulip policy because the policy is linked to the market, the redemption premium will be according to the prevailing NAV of the Ulip where appropriate date of cancellation of the policy (after deducting the cost of the above).

Point to notice 

It is the responsibility of the insured to prove the date of receipt of the policy document.
If online sales policy, the period of 15 days free expression extends to 30 days.

Which documents should be submitted in the application for cancellation of insurance policy?

1. Policy Cancellation Form
2. Original Policy book

A letter from an insurance company, on letterhead or official paper, including: the letter A or invoice the premium of your old insurance company that shows you or your dependent cancellation / termination letter decertification coverage.A health of your insurance company indicating when no coverage will be offered.

A letter from an employer on official letterhead or stationery, confirming one among them about you or your spouse or dependent: your employer falls or is reduced benefits.That coverage or your employer stopped or will stop contributing to their cost coverage.That changed or will change your employer coverage or no benefits and coverage be considered qualifying health coverage.

A letter about COBRA coverage, sort of a letter from an employer or insurance company that confirms these:Your employer’s offer of COBRA coverage along side the date this coverage would start.Your COBRA coverage ended or will end, or your employer stopped or will stop contributing to the value of coverage and when.

you can also submit any of the documents within the list below. However, these documents may include just some of the knowledge we'd like to verify , so you’ll presumably got to submit quite one among these documents:

Pay stubs, if you lost employer-sponsored coverage. you'll submit:2 pay stubs from the past 1-3 months, one that shows a deduction for health coverage and another which shows that the deduction led to the past 60 days.If a discount in work hours caused you to lose coverage, you'll submit one previous pay stub that shows that you simply worked 30 or more hours and a deduction for health coverage, and a pay stub from the last 60 days shows that simply worked 30 hours but no deduction for health coverage.

Document showing you lost coverage due to divorce, legal separation, custody agreements, or annulment within 60 days of submitting your application, including:Divorce or annulment papers that show the date responsibility ends for providing health coverage or proof that you simply stopped getting health coverage due to your relationship to your former spouse.Legal separation papers that show the date responsibility ends for providing health coverage.Other confirmation that you simply lost or will lose coverage due to divorce, legal separation, or annulment that shows the date that health coverage ends.

Document showing the lost coverage by the death of a loved one, including: a death certificate or death notice and public proof that simply was receiving health coverage due to your relationship to the dead person , sort of a letter from an insurance firm or employer that shows the names of the people on the health plan.Other confirmation that shows you lost or will lose coverage due to the death of a spouse or other loved one .

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