Can you cancel a life insurance policy?

Yes, you can cancel your life insurance if it no longer meets your needs, you wish to make changes, or you no longer require it.

There are three options you can choose from:

  1. Cancel - You’ll no longer own the policy and cover will cease
  2. Switch - Cancel your policy and switch to a more relevant policy that meets your needs
  3. Retain - Maintain your current policy and/or take an additional policy if required

However, which of these options is the most beneficial to you will depend on your personal circumstances.

Reassured can't cancel your life insurance policy on your behalf.

However, if you’re looking for a new policy, we can help you compare multiple quotes to find you our best deal.

Our friendly team can offer personalised, fee-free and no-obligation quotes on a variety of life insurance policies.

Simply contact us today.

Can I cancel life insurance at any time?

Yes, life insurance isn’t mandatory and can be cancelled at any time.

What happens next is dependent on when you cancel your life insurance.

Policies will have a cooling off period which typically lasts 30 days from when the policy begins, or when you’ve received your welcome pack:

  • If you cancel within 30 days of receiving your paperwork - Most providers will refund any premiums you’ve paid and then your policy will be cancelled
  • If you cancel after 30 days of receiving your paperwork - You’ll have surpassed the cooling off period and won’t be eligible for a refund on the premiums you’ve paid

While it’s possible to cancel a life insurance policy, it’s also important to evaluate all other options as there may be a better alternative for your situation.

Reassured can provide impartial information, so you can make an informed decision about your current policy.

Alternatively, we can provide personalised and fee-free quotes to help you secure alternative cover.


Check out our life insurance calculator below to determine how much cover you need to help protect all your financial commitments:

Life Insurance Calculator

Calculate how much life insurance you may need by filling in the costs you’d like your policy to cover.

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£137,934 is the estimated mortgage debt per household in the UK.

The purchase of a home is likely to be the largest financial commitment any of us will make in our lifetime. Your life insurance should cover your remaining mortgage balance to allow your loved ones to stay in the family home should anything happen to you.

Source: Moneynerd.co.uk

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The average monthly household budget in the UK is £2,548 (that’s £30,576 per year), which is spent on transport, food & drink, utilities (gas, electricity, water etc), clothing, council tax and leisure activities.

With energy prices hitting a record high and the cost of living rising sharply in the UK, you may wish to factor in utility bills and family living expenses into your cover.

Source: Nimblefins.co.uk

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The average personal debt of UK adults has risen to £34,566 (not including mortgage debt), with credit cards, personal loans and overdrafts being the most common forms of debt.

Factoring in any debts into your life insurance cover means that, if they need to be paid back from your estate after your passing, your loved ones won’t miss out financially.

Source: Money.co.uk

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According to SunLife, the average cost of a funeral in the UK is £3,953 (with the overall cost of dying at £9,200).

Funeral costs have increased by 116% since 2004 and are a significant cost which should be factored into the amount of life insurance you secure.

Source: SunLife.co.uk

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When factoring in cover for your children, you may wish to calculate the amount based on how long it is until they reach financial independence.

This could include childcare (£7,000 per year for part-time care), school expenses (£1,519 per school year for uniforms, lunches, stationary etc), as well as an additional sum for further education (this could be a contribution of up to £5,000 per year).

Sources: Daynurseries.co.uk, Primarytimes.co.uk & Savethestudent.org

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2 in 5 adults say they are relying on an inheritance to fund their retirement.

Factoring in an inheritance to your sum assured could allow loved ones to live a more financially comfortable life. Alternatively, you could leave a cash gift to a charity of your choosing.

Source: Moneyage.co.uk

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If you’re lucky enough to have your own savings or are part of the 30% of UK residents who already have a life insurance policy in place, this can provide financial protection for loved ones.

By entering your current cover, savings or death in service amount you can reduce the sum assured you require.

Source: Scottishbusinessnews.net

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Why would I cancel life insurance?

Some of the most common reasons for cancelling life insurance include:

  • It’s no longer within your budget - While your life insurance premiums are fixed, if you can’t afford to continue paying them, you may feel inclined to cancel your policy or see if more affordable cover is available. It’s important to note that if multiple premium payments are missed your policy could lapse or be automatically cancelled by your provider
  • The mortgage has been paid - Term-based life insurance can coincide with your mortgage payments – helping to cover your family home if the worst were to happen to you. You can either cancel your policy once it has fulfilled this requirement, or secure cover which is more suitable for your current circumstances
  • It no longer meets your requirements - You may find that your cover is no longer relevant or isn’t required due to a change of circumstances. If you feel your cover is redundant, you may wish to cancel your policy in order to secure a plan which reflects your needs
  • You’ve experienced a divorce/ended a civil partnership - If you secured cover to financially support a loved one, and this relationship has ended, you may wish to cancel your policy, or find cover more suited to this lifestyle change. If you have a joint policy, not all providers will let you split the policy in two, this would require you to cancel the existing policy and secure new cover
  • You’ve found a better policy - You may have found a policy with a more suitable term, amount of cover, or premium for your current requirements

Some insurers will allow you to make changes to your policy if your circumstances change. This is known as special events clause, or guaranteed insurability option.

If your policy includes a special events clause, changes could be made when:

  1. There’s a change in marital status
  2. You’ve welcomed a new addition to your family
  3. There’s a change to your mortgage
  4. You’ve received an increase in your salary or secured a new job

The sum assured (pay out amount) and your beneficiaries can be amended on eligible policies. However, many providers won’t let you extend the policy length.

If you don’t have a special events clause, you can secure an alternative policy which coincides with your current life insurance, cancel your current life insurance and replace it, or retain your current policy.

Can I reduce my cover?

Yes, you can reduce your cover if your circumstances have changed, or you require a cheaper policy. This can be done in three different ways:

  1. Reduce the sum assured - This will lower the pay out upon your passing, and subsequently lower your premiums in most situations
  2. Reduce the length of the policy - By shortening your policy term, you’ll pay less over its lifetime. You may also experience a reduction in premiums
  3. Secure a new policy - If neither of these options are possible, you may wish to secure replacement life insurance cover. This could have more favourable terms for your current circumstances. However, if you’re older and/or have less favourable health, these factors will be taken into consideration and could have an effect on your premiums

Reassured can determine whether your existing policy has a special events clause, and help you make an informed decision about your individual options.

We can also help you secure life insurance with the special events option if you required a new policy and wanted to protect yourself from additional life changes.

Simply contact our friendly team today.

What happens if I cancel my life insurance policy?

As previously stated, if you cancel your life insurance within 30 days of receiving your paperwork, most companies will refund any premiums you’ve paid in.

If cancelling after this 30 day period, you won’t be eligible for a refund of premiums.

Once you’ve cancelled your policy, no further action is needed, and many companies will send confirmation paperwork.

However, for extra assurance, you may wish to cancel your direct debit to ensure no additional payments are taken from your account.

It’s also important to note that if you pass away and your loved ones make a successful claim, your life insurance policy will be automatically terminated.

No pay out will be made if you cancel a policy.

Will I get my money back if I cancel life insurance?

You’ll be eligible for a refund of premiums if you cancel within 30 days of receiving your paperwork.

However, if you cancel after this 30 day cooling off period, you won’t be eligible for a refund.

Whether you’ve been paying the policy for over 1 month, or over 10 years, no premiums will be refunded if cancelling after 30 days.

At what ages does life insurance stop?

There isn’t a set age that life insurance stops. It’s dependent on the type of policy you have, the policy terms offered by your provider and when the policy was secured.

However, many providers have an upper age limit at which they stop providing cover and which your cover must cease.

At Reassured, we offer four types of life insurance:

Can you cancel level term life insurance?

Policy length: Between 5 - 40 years through Reassured

Age range to secure policy: Often between 18 - 77, but can vary between insurers

Can you cancel decreasing term life insurance

Policy length: Between 5 - 40 years through Reassured

Age range to secure policy: Often between 18 - 74, but can vary between insurers

Can you cancel whole of life life insurance

Policy length: Until you pass away

Age range to secure policy: Often between 18 - 80, but can vary

Can you cancel over 50s life insurance

Policy length: Until you pass away

Age range to secure policy: 50 - 85 years old, depending on the insurer

Because Reassured can help you secure life insurance from many of the UK’s best providers, including AIG, Aviva, Legal & General, LV= and Zurich, the maximum age that life insurance can be secured will vary.

It’s important to remember that:

  • Policy length determines how long term-based life insurance lasts
  • Your age at the time of application will also impact the maximum length you can secure
  • Most providers require cover to cease at a certain age - often around 85 - 90 years old
  • Whole of life and over 50s life insurance last until you pass away - providing premiums are up to date
  • Premiums for many whole of life insurance policies cease around 90 years old - resulting in continued cover but no additional payments required

Therefore, there’s a set period or point when cover stops, but not always a set age.

To compare a range of life insurance policies, why not contact Reassured?

How to cancel life insurance?

Life insurance cancellation policies can vary between providers so, if you’re looking to cancel your policy, you should look at your providers terms and conditions.

Below is a list of cancellation contact information for some of the most common UK providers:

ProviderPhone numberEmailAddressOpening hours
AIG logo 0345 600 6820enquiries@aiglife.co.ukCustomer Services Team,
AIG Life Limited,
PO BOX 12010,
Harlow,
CM20 9LG
Monday-Thursday: 08:30 - 18:00
Friday: 08:30 - 17:00 (excluding bank holidays)
Aviva 0800 285 1098Cancel via https://www.aviva.co.uk/help-and-support/contact-us/life-cover-email-enquiries/life-cancel-policy-info/Aviva PLC,
St. Helen’s,
1 Undershaft,
London,
EC3P 3DQ
Monday - Friday: 08:00 - 18:00
Legal & General 0370 0600 015Search for their cancellation form at https://www.legalandgeneral.com/existing-customers/life-cover-support/Legal & General Assurance,
Society Limited,
City Park,
The Droveway,
Hove,
East Sussex,
BN3 7PY
Monday - Friday 09:00 - 18:00

LV=

0800 678 1906feedback@lv.comLV= Health Claims Team,
Emperor House,
Grenadier Road,
Exeter Business Park,
Exeter,
EX1 3LH
Monday - Friday: 09:00 - 17:00
Zurich logo 0370 333 1500Contact form: https://www.zurich.co.uk/about-us/contact-us/contact-us-formZurich Community Trust Ltd,
PO Box 1288,
Swindon,
SN1 1FL
Monday - Friday: 08:30 - 17:30
(excluding bank holidays)


You can't cancel your policy through Reassured - even if it was secured with us.

However, Reassured can help you find alternative quotes, and also help you find personalised, fee-free, no-obligation quotes.

Contact our friendly UK team for a quote now.

Should I cancel my policy?

There’s no universal answer whether cancelling your policy is the right decision, and you should consider your options very carefully.

It’s important to talk to a life insurance broker, like Reassured, to help you make an informed decision, and discuss your available options.

You would need to consider, or may be asked:

  • Why do you want to cancel your policy?
  • Does your policy still cover your circumstances?
  • Have you considered shortening your policy term or reducing your sum assured?
  • Would a new or additional policy help reflect your needs better?
  • Have you used Reassured’s quote comparison service to see what other options are available?

Once you have navigated and discussed these options, you can take your chosen action accordingly.

Can I cancel and switch provider?

Yes, you have the option to cancel your existing life insurance policy and switch to an alternative provider.

If you find your current policy is too expensive, or no longer meet your needs, you’re not obliged to keep it and you can swap to an alternative provider.

However, it’s important to note that the price you’re offered is dependent on your situation at the time of application. This includes:

Therefore, it’s worth considering whether new options which reflect your needs are within your budget.

For example, you may have secured term-based life insurance at 20 years old, but you’ve now decided years later that, as your circumstances have changed, you need alternative cover.

However, your age and any changes in your health and lifestyle may mean you face additional loading (higher premiums) on a new policy.

If you decide to cancel your policy, Reassured can find quotes for you. Simply contact us for a fee-free no obligation quote.

Life insurance cancellation FAQ

Do you pay life insurance forever?

Life assurance premiums, including whole of life insurance and over 50s life plans, are paid until you pass away, or if the policy has a specified age where premiums are no longer required.

Term-based life insurance is paid until the term has finished, or until you pass away.

Life insurance can be cancelled at any point if you wish, resulting in no more premiums being paid. However, you won’t have any cover in place.

Do I need life insurance if the mortgage is paid off?

You may still require life insurance once your mortgage is paid off, depending on what your current circumstances are.

If your mortgage is paid off, you may still have loved ones who are financially dependent on you. Alternatively, you may want to have life insurance in place to cover your funeral or provide an inheritance.

Can I let my life insurance lapse and have it reinstated?

Yes, certain companies can offer you a break from your payments, providing these are caught up with once the break is over.

Most companies will continue with your cover if you miss a payment - providing it is paid within 30 days of the missed payment.

Does cancelling life insurance hurt your credit?

No, cancelling life insurance doesn’t impact your credit score, and doesn’t appear on your credit report or history. However, a poor credit score may impact your ability to secure life insurance with some companies.

Reassured can help you secure the best cover for your circumstances

If you’re considering cancelling your life insurance and would like to know what other options you have, it’s worth contacting Reassured.

We can compare personalised quotes for you on a fee-free, no-obligation basis.

We can also offer:

  • A variety of life insurance policies to reflect your needs
  • Free trust writing service to minimise or avoid 40% inheritance tax
  • Free terminal illness cover with all term life insurance policies
  • Access to our specialist impaired risk team, who help applicants who have been declined in the past
  • Our dedicated, UK-based call centres and award-winning customer service
  • Unbiased knowledge which can help you make an informed decision
  • Cover from many of the UK’s top providers
  • Life insurance from just 20p-a-day

Simply contact Reassured today to discuss your options.

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