Like most legally binding contracts, insurance contracts and policies can also be canceled. Regardless of the insurance package you’re canceling, the cancellation process is often the same unless specified differently by your service provider. To cancel an insurance policy, all you need to do is send an insurance cancelation letter to notify the insurance provider.
In this article, we’re going to explain what an insurance cancelation letter is and also include some samples on how to write an insurance cancellation letter for various policies.
What is an Insurance Cancelation Letter?
A letter canceling an insurance policy is a letter written to an insurance company/provider to notify them of your decision to cancel your insurance subscription. Depending on the policy, you can ask for a refund on the reminder portion of the premium.
There are various reasons to cancel your insurance subscription, and all of these depend entirely on your needs at the time. You can decide to cancel an insurance policy if you don’t think it’s needed any longer if you’re moving to a new location, are unsatisfied with the performance of your current insurer, found another company providing wider coverage, or simply changing locations. All of these are valid reasons to write an insurance cancellation letter.
How to Write Cancellation Letters for Various Instances (Samples Included)
Important Information to Include in Your Letter
For most cancellation letters, it is important that you tick all the boxes to ensure there’s no back and forth between you and the company, and also to ensure your cancellation request is granted without any hitch. A letter canceling an insurance policy also falls in this category.
To ensure your insurance policy cancelation letter is taken seriously, make sure all of these are included in your letter:
- Your name: For your cancelation letter to be effective, the name of the account holder must be written. For a policy to be canceled, it must include the correct information of the policyholder.
- Your contact information and address: This is important as it makes it ultimately easier to follow up with the policyholder if there’s a need to reach out to them. If your contact information is different from when you registered the policy, ensure to include accurate information.
- Company information: An insurance cancellation letter is a formal letter, and as such, should contain your information and the recipient’s. So, ensure the company’s contact information is written in your letter as well.
- Include policy information: In this section of this letter, ensure to include accurate information regarding the specific policy you’d like to cancel. If you have a customer id with the insurer, include this in your letter as well, as it helps facilitate the process of locating your account and canceling the package.
- Date letter was written: On the top left corner of your letter just after your address, include the date the letter was written as it makes the documentation process ultimately easier.
- Effective cancellation date: Including a date you want the cancellation to go into effect helps the cancelation process proceed smoothly. When you include this date, you explain to the insurer how you want the cancellation process to proceed. Do you want to complete the current month, or do you want the cancellation to happen in the next quarter? All of these are effectively translated by the cancellation date.
- Reason for cancellation: Unlike all the other points stated above, this is optional. If you don’t want to include the reason behind your cancellation, you don’t have to. If you do decide to include the reason, make sure to be as brief about it as possible.
- Special requests: If you have any information you’d like the insurer to be aware of, you can also state this in your insurance cancelation letter. If you want them to take a specific action, also include this in your letter. If you pay ahead, asking for a refund of the balance is a great example of this kind of request.
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How to Write an Insurance Cancelation Letter
Here are some tips to bear in mind when writing an insurance cancellation letter.
- Keep it concise
Your insurance cancelation letter doesn’t have to be more than a page long if it doesn’t have to be. Your letter should explain who you are and what you want from the get-go. If you’re canceling the letter because you were not satisfied with their service, an insurance cancellation letter is not the place to do this. - Include all relevant information
As said earlier, ensuring all of the accurate information is included in your letter goes a long way in ensuring that your request is fast-tracked. - Write your letter firmly
Contrary to some opinions, you’re well within your rights to cancel a package that no longer delivers. So, ensure your letter is firm and polite. - Ensure it is error-proof
An insurance cancellation letter is an official letter. As such, it must be void of errors. This isn’t limited to grammatical errors alone. Your identification numbers must also be correct to ensure the policy is canceled as soon as possible. - Sign the document
When signing the letter, ensure to sign it by hand. This is advisable as it makes your letter more official. If you’re unable to sign it by hand, you can also sign it digitally.
Common Insurance Policy Types and their Cancellation Samples.
In this section of this article, we will include insurance cancellation templates for various policies.
Regular Insurance Cancellation Letter Template
This template is a generic template that can be edited to serve any insurance policy you wish to cancel.
[Your name] [Company’s name and address] [Company’s address] [Date] [Name of Insurance Company] [Company’s location] [Address and PO BOX] RE: Insurance Cancellation with [name of insurance company] To Whom It May Concern, My account ID is [ID number] I am writing this letter to cancel my insurance premium with [name of company] I would like this cancellation to begin effective immediately. Please cancel all scheduled payments and refund all unused premiums. Please send me a confirmation of this cancellation letter. Kind Regards, [Your name] [Signature]
Life Insurance Cancellation Letter Template
If you’d like to cancel a life insurance policy, this template with give you a head start in writing that letter.
[Your name] [Your address] [Date] [Name of Insurance Company] [Company’s location] [Address and PO BOX] RE: Life Insurance Policy Cancellation To Whom It May Concern, My name is [your name] and I am a life insurance policyholder at [Insurance Company]. My customer ID is [customer ID number] and this letter is an official request to cancel the life insurance policy referenced above. Kindly stop all charges or debits. I would like this cancellation to go into effect as of [state date]. I would also like to request a refund of all the unused premiums latest 30 days from the cancellation period. I would also like to request a confirmation letter as soon as possible. Please reach out to me if you have any questions. Kind Regards, [Your name] [Signature]
Home Insurance Cancellation Letter Template
If you no longer want your home or apartment to be insured, use this template to inform your insurance provider about your decision.
[Your name] [Your address] [Date] [Name of Insurance Company] [Company’s location] [Address and PO BOX] RE: Home Insurance Cancellation Letter To Whom It May Concern, I am a policyholder [ID information] and I would like to cancel my home insurance with your company. I would like this cancellation to begin from the [set date]. [State reason for cancellation if you wish] I would like a confirmation response and a cancellation of all subscribed premiums. Please reach out to me if you have any questions. Kind Regards, [Your name] [Signature]
Health Insurance Cancellation Letter Template
If you’d like to cancel your medical insurance with an insurance company, inform them of your decision with this template.
[Your name] [Your address] [Date] [Name of Insurance Company] [Company’s location] [Address and PO BOX] RE: Health Insurance Cancellation Letter To Whom It May Concern, My name is [your name] and I am a health insurance policy holder at [name of insurance company] I would like to cancel my health insurance policy with your company. I would like this cancellation to come into effect on [date cancellation should come into effect]. Please cancel all automatic payments and refund all unused premiums. Also, I would like to request a receipt of this cancellation. Please get back to me if you have any questions. Kind Regards, [Your name] [Signature]
Auto Insurance Cancellation Letter Template
If you no longer require auto insurance for your vehicle, use this template to inform the insurance company of your decision.
[Your name] [Your address] [Date] [Name of Insurance Company] [Company’s location] [Address and PO BOX] RE: Auto Insurance Cancellation Letter To Whom It May Concern, I am writing this letter to request the cancellation of my auto insurance policy [policy number] with [name of insurance company]. I would like this cancellation to be effective immediately and all automatic payments on my account stopped. I would also like to request a cancellation confirmation letter and a refund of all unused premiums. Please get back to me if you have any questions or inquiries. Kind Regards, [Your name] [Signature]
Conclusion
When writing an insurance cancellation letter, ensure to request confirmation. This is important as it helps you ensure that your cancellation was processed.