Your browser version is no longer supported, so you may experience issues while using this site.
Please upgrade to a current browser to enjoy the best experience.

3 reasons to talk to an adviser before cancelling your life insurance

graham hill

By Graham Hill
Executive Manager, Life Distribution

21 January 2019

Share this: 

If your circumstances or finances have changed, you may be looking at reducing or cancelling your life insurances.

But if you’ve had the cover in place for years, or even decades, it can be difficult to give up the ‘security blanket’ of knowing you have it. Talking to an insurance adviser can help you feel more confident that you are making the right decision.

Here are three reasons why it’s a good idea to talk to an adviser before you cancel your life insurance.

1. They can explain any consequences

When you take out a life insurance policy, your lifestyle and medical history go through an underwriting process. 

That means cancelling your insurance can be a big decision, because if you need to take out cover again in future and you’ve had any medical issues, that might affect how much cover you can get and how much it costs.

It’s best to understand any consequences of cancelling your insurance before you do so. An insurance adviser will be able to talk through your circumstances and history, and give you information on how cancelling your insurance might affect you in future. 

2. They can talk to you about your future needs

Retiring, paying down debt or having your kids leave home can all be good reasons to review your life insurances, and you may decide you no longer need the cover.

But it’s a good idea to have a conversation with an independent insurance adviser about any plans you have, so they can help you assess your current and potential future needs.

For example, if you’ve paid off your mortgage you might want to cancel your life insurance cover. But if you then decide to buy a holiday home, you might have been better off keeping your existing cover in place. 

Bouncing your plans off an adviser can help you feel confident that whatever decision you’re making is the right one now, and in the foreseeable future.

3. They can help you save money

One of the common reasons people give when cancelling their life insurance is that they can’t afford the premiums.

But sometimes there are other options to reduce the cost, including reducing your cover, increasing wait times or restructuring your policies. 

If you need help affording your cover, it’s always a good idea to talk to a financial adviser before cancelling – they can explain all your options so that you can make an informed decision about whether cancelling your cover is the best choice for you.

Cancelling your life insurance can be a big – and sometimes exciting! – decision in your life, but whatever your circumstances, it’s always great to get personalised help. 

So make sure you talk to your financial adviser first. If you don’t have an adviser, we can help you find one.

Keep reading

If in doubt, leave it in – understanding non-disclosure

Blog

If in doubt, leave it in – understanding non-disclosure

By James Thomson

If you’re thinking about applying for life insurance, we’ve put together a few things you should know about what you need to disclose, and why it matters.

6 reasons to buy life insurance through an adviser

Blog

6 reasons to buy life insurance through an adviser

By Trevor Longbottom

Buying life insurance direct may seem easier in the short term, but here are 6 reasons you should think about talking to an adviser first.