How Do I Cancel a Critical Illness Insurance Policy Without Penalties?
You can cancel critical illness insurance at any time without penalties. Within the first 30 days (cooling-off period), you'll receive a full refund. After that, you can still cancel but premiums paid are non-refundable. Contact your insurer to request cancellation and cancel your direct debit.
Cancellation Process
Review your policy
Check your policy documents for the insurer's cancellation process and any notice requirements.
Contact your insurer
Call or write to your insurer to request cancellation. Keep a record of all correspondence.
Confirm in writing
Most insurers require written confirmation. Send an email or letter confirming your cancellation request.
Cancel direct debit
Contact your bank to cancel the direct debit. Don't rely solely on the insurer stopping collection.
Before You Cancel
Think Carefully Before Cancelling
- • You'll lose protection immediately - any diagnosis after cancellation won't be covered
- • Getting new cover later will be more expensive (older age) and may exclude new health conditions
- • If you're cancelling due to cost, speak to an adviser about cheaper alternatives first
- • Consider reducing cover rather than cancelling completely
Your Cancellation Rights
Within 30 Days
Full refund of all premiums paid during the cooling-off period
After 30 Days
Cancel any time with no exit fees, but premiums paid are non-refundable
Frequently Asked Questions
Is there a cooling-off period?
Yes. UK regulations give you 30 days from receiving your policy documents to cancel for a full refund of any premiums paid. This is called the 'cooling-off period' and applies to all protection policies.
Can I cancel after the cooling-off period?
Yes, you can cancel at any time. Critical illness policies don't have exit fees or penalties. However, premiums already paid are non-refundable (except during cooling-off), and you'll lose your cover immediately.
Will I get any money back if I cancel?
Standard critical illness policies have no cash value - they're pure protection. Unlike some whole-of-life or investment-linked policies, there's nothing to pay out when you cancel. You simply stop paying and cover ends.
What happens if I want to restart cover later?
You'd need to apply for a new policy. Your premiums would be higher (older age) and any new health conditions would be considered. You can't pause and restart an existing policy.
Related Questions
This page provides general information only and does not constitute personal financial advice. Cancellation processes may vary between insurers. Your Home Finance is authorised and regulated by the Financial Conduct Authority.