An insurance cancellation letter is a formal letter written by a policyholder to an insurance company when they decide to discontinue their policy due to any reason. Writing this letter is essential to ensure that there are no legal or financial ramifications. You must go through your policy for specific cancellation provisions before drafting this letter.
Table of Contents
Your insurance cancellation letter must include the following essential elements;
To ensure that your letter is directed to the right individual or department, provide the following details;
State your complete name and your policy number clearly in the letter. Write the coverage period as mentioned on the declarations page of your policy. The insurer can quickly identify your account by having these details.
Mention the effective date from which you want your policy to be canceled.
Write a statement that states after a cancellation date the insurer isn’t authorized to continue withdrawing premiums from your account. This statement prevents you from any unwanted charges.
Request for a premium refund that you have been paid in advance (if applicable). Moreover, you need to be specific while requesting the amount you expect to be refunded.
To keep a record of your policy termination, you should ask for a written confirmation of the cancellation to be sent to you on a particular date.
It would be recommended to concisely state your reason for cancellation. It can be helpful if it is relevant to service issues or changes in your coverage requirements.
Provide your contact details so that the recipient can contact you for any further communication required during the policy cancellation.
Close your letter by stating ‘Sincerely,’ which is then followed by your signature and printed name.
For a smooth termination process, your cancellation letter should be crafted professionally and clearly. Consider the following pointers to ensure your letter is effective;