Cancelling your life insurance policy

Here are some reasons often cited by those looking to cancel their life insurance policy.

• Affordability - you may have no money in the bank to pay your life insurance premiums.
• Divorce - even following an amicable divorce, cancelling a joint L&G Life Insurance policy may make sense if you'd rather arrange a new single policy for yourself. However, the cost will likely be higher for the same cover because you'll be older than when you first took out the policy. Read more about life insurance and divorce.
• Change of circumstance - you may decide that you don't need or want life insurance if you no longer have dependents; for example, if a family member becomes financially independent, or tragically passes away.

Furthermore, you may have already paid off your mortgage and feel you don't need the financial protection anymore, but as we'll explain, cancelling life insurance isn't always the best course of action.

If you're cancelling a life insurance policy with us, the answer depends on when you decide to cancel your L&G Life Insurance. If you cancel your policy within 30 days of receiving both the notice and the policy, we will refund any premiums paid. If you cancel your policy after this date, you will not get any money back. If you pay annually you will receive a proportionate refund of your annual premium. Once a policy has been cancelled, no further premiums will be payable, but your cover will end. To cancel a policy written under trust, the settlor would need permission of all the trustees.

If you've paid off the mortgage but still have life insurance, you may be tempted to cancel the policy. However, bear in mind that life insurance is designed to protect your family if they depend on your income or assets in general, so life insurance could still be worth retaining if you're responsible for other family costs, from education fees and children's activities, to your parents' care in their old age.

Yes, you can ask to make changes to your life insurance with L&G instead of cancelling your policy. You may be able to increase your cover without the need to complete a full application again on certain life events, such as:

• The birth or legal adoption of a child
• Marriage or civil partnership
• A promotion or new job leading to a pay rise
• Increases to your mortgage due to moving to a new house or a major home improvement
• Divorce or dissolves a civil partnership

You can also ask to make other changes such as changing the term, the amount of cover or even removing a name from a joint policy. These changes could affect the premiums that you pay, and we would have to assess any change request based on your circumstances at the time. Terms and conditions apply, and for more information you should refer to your original policy document. Learn more about making changes to your life insurance policy.