This is the most effective way to contact life insurance companies and explain your intentions. A letter also saves policyholders from having to speak with a company person directly. Following a series of procedures makes writing a life insurance cancellation letter simple.
Review Policy Information
It is possible to cancel a life insurance coverage at any moment. There are no limitations on the right to terminate a coverage in a life insurance policy.
Examine the policy’s information to ensure that the right cancellation procedure is followed. Preparing a rough draft of the life insurance cancellation letter is the next stage.
Prepare Rough Draft
A rough draft can be written on a computer or on normal paper using a text editor. The date should be written first on the preliminary draft.
This should be placed in the document’s upper left corner. Below the date, write or type the policyholder’s name and address.
The name of the insurance appears beneath the address. If you’re writing to an agency or a firm representative, include the contact person’s information. The account number will be on the next line, followed by a topic line.
Begin by demanding the cancellation of the life insurance policy in the first paragraph. Make sure to include a statement declaring that all payment charges or debits will be halted.
The date on which the policy will be effectively canceled should be stated in the following sentence. If the letter is not ready to mail before the monthly premium due date, make sure to send any payments that are due.
Any overpayment premiums will be refunded by the life insurance company. When submitting premium refunds, if the insurance includes a monetary value, request that the amount be reimbursed by check.
At the end of the letter, provide a salutation. This will eliminate any doubt regarding the intention to cancel the policy.
For the salutation, use the term “Sincerely” or “Best Regards.” The last section of a life insurance cancellation letter is this. Always sign the letter beneath the salutation.
The next stage is to turn the rough copy into a final letter. This can be accomplished by either sending the message to a printer or typing a fresh letter from scratch. Make two copies of the letter of cancellation.
One copy should be signed and sent to the insurance company. The second letter is intended for personal use.
Sample 1 - Life Insurance Cancellation Letter
2345 Trowbridge Road
Lafayette, CA, 86709
XYZ Insurance Company
346 Pine Street
Philadelphia, PA, 19007
RE: Life Insurance Policy #345762
Sample 2 - Life Insurance Cancellation Letter
Global Life Insurance
7634 Virginia Street
Columbia, MD 21097
Re: Cancellation of Policy Number: 675432
To Whom It May Concern:
I regret to inform you that I, [Name of policyholder along with life insurance policy] have decided to terminate my life insurance coverage effective immediately. The reason for my decision is based on finding a more comprehensive coverage for a lower cost.
Please, send me a written confirmation of the cancellation for my records at your earliest convenience.
231 Versailles Ave.
Oakland, CA 34567
Sample 3 – Life Insurance Cancellation Letter
Attn: Cancellations Department
[Insurance Company Name]
[Insurance Company Address]
Re: Cancellation of [Life Insurance Policy #]:
To Whom It May Concern:
I regret to inform you that I, [Name of policyholder along with life insurance policy] have decided to terminate my life insurance coverage effective immediately.
The reason for my decision is based on losing my job and unable to pay premiums. Please, send me a written confirmation of the cancellation for my records at your earliest convenience.
[Name of policyholder]