Insurance Termination Letter

If you have just bought an insurance policy but then change your mind and wish to terminate the deal, you would need to write an insurance termination letter. Insurance is like a contract and if it needs to be cancelled or annulled, it must be done so in writing. You would need to provide a written application about the termination and give a specified notice period.

Why is it important to give a written application?

A written application is the best way to protect your own interests. This way, you will possess a valid copy of the insurance termination letter with all the dates and other details as proof should you need to follow it up with the insurance company.

Important points to remember

The main point to be kept in mind is that only the policy holder can cancel the insurance. If the policy is held jointly by two people, then only the one on whose name the policy has been bought has the authority to terminate it. You also need to go through the terms and conditions to ascertain if you would be permitted to cancel the policy. In most cases a policy can be terminated without penalty within 14 days of the effective policy date. Any time lapse beyond 14 days would incur a penalty.

What you need to include?

• Your contact details
• Your policy details which include policy number and the date you bought it
• The Insurance agency's name and address
• The date from when you wish to terminate the insurance Some helpful tips
• You are not bound to give any reasons whatsoever for the termination. However if you have found another company that gives better coverage and have planned to switch over to that, you could mention that along with their rates
• Be polite but firm about your decision to cancel the policy. If your letter has a wavering tone the company might try to make you change your mind
• If you are entitled to any refunds on your unused premiums, do request for the same. Conversely if you owe the company any balance amount, do enclose a check and mention the figure in your letter
• Request for a written acknowledgement of the cancellation from the insurance company
• Mail the letter using registered post and ask for the return receipt

The following sample insurance termination letter will serve as a guideline to help you frame your own.

Insurance Termination Letter

Melinda A. Davis
3418 Counts Lane
Cincinnati, KY 45202
Phone:859-991-7722
Email Address:MelindaADavis@abc.com

January 17 2012

Adrian Adams
Customer Service
Sterling Insurance
1155 Tree Top Lane
Plymouth Meeting, PA 19462

Subject: Cancellation of Policy No: 56114AX

Dear Mr Adams,

This is to bring to your notice that I have decided to terminate my Insurance policy (No 56114AX) dated 10 Jan'12 with effect from 24 Jan' 12. I would like to request you to acknowledge receipt of this letter and send me a written confirmation of the termination of policy at the earliest. May I also request you to reimburse to my account the unused premiums that I may have to my credit and to permanently cease to draw monthly premiums from my bank account.

I would appreciate if you could act upon my request and process it as soon as possible.

In anticipation of a prompt response.

Yours sincerely,

Melinda Davis

The above sample of an insurance termination letter strikes the right tone and would provide you with the general direction to frame your own. Make sure to write the correct details and proof read in order to eliminate any possibilities of errors. Also, you can refer to Termination Letter For Misconduct and Termination Letter For Non Performance for more letter samples.