How to Write Letter

Life Insurance Cancellation Letter

Life insurance is an agreement between the policy holder and the insurance company, where the insurance company agrees to pay a designated nominee a sum of money upon the maturity of the insurance or policy holder's death due to some foreseen or unforeseen conditions. In return, the policy holder has to pay a fixed amount of premium at regular intervals or in lump sums.

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Insurance cancellation letter is written by the policy holder to cancel the coverage of policy. Canceling an insurance policy is a personal choice, and you can cancel your policy by drafting an insurance cancellation letter. Every policy has a certain locking period, which means you are not eligible to cancel the policy, unless you complete that many periods. After completion of those periods, you can write the cancellation letter. A life insurance cancellation letter has to be written only by the policy holder and not the beneficiary.

There might be a possibility of finding other policy better than the existing one. In such case, you can surely go for cancellation since you're paying it and you deserve to reap maximum benefits out of it. The other reason could be the emergency to meet certain expenses which otherwise is impossible without canceling the policy and withdrawing the accrued amount, which are paid as a premium in installments. In all these reasons, you have to write a cancellation letter because the insurance policy is a contract and to terminate it, you've to give a written notice.

Sample of Life Insurance Cancellation Letter (1)

Policy Holder's Name
Address
City, State, Zip Code
Contact Number

Date

Name of Cancellation Department
ABC Insurance Company
Address
City, State, Zip Code

Subject: Policy Number XXXX Cancellation

Dear Sir/Madam,

I am sending this letter as a written request to cancel my insurance policy with effect from (insert cancellation date).

Please send me a written confirmation of acceptance of this letter. I understand that the closing process takes 30 days and I request you to refund the unused amount of my premium, and cease debiting the monthly premium payment from my account.

Thanking you in advance for your immediate action.

Yours sincerely,
(Writer's Name)

Sample of Life Insurance Cancellation Letter (2)

Policy Holder's Name
Address
City, State, Zip Code
Contact Number

Date

Name of Cancellation Department
XYZ Insurance Company
Address
City, State, Zip Code

Subject: Cancellation of Life Insurance Policy (Policy Number: IT654798)

Dear Sir/Madam,

I am writing this letter to inform you about my intention to cancel my life insurance policy with effect from 30 December 2009.

The reason to terminate the insurance policy is personal and I don't have any complaint against you. I request you to accept my request and acknowledge this letter by sending a copy to me at my given address.

I am well aware that the cancellation process needs good 30 days and I request you to refund my paid premium so far with interest, if any, at the closure of the policy.

Yours sincerely,
(Writer's Name)

These samples of life insurance cancellation letters are written considering two basic reasons of canceling. If you have any similar reason among these two, go ahead and customize it to suit your need.

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