This article is intended to be a guide on how to cancel insurance efficiently. There are some factors that may go unnoticed and that justify that …
A good part of the inquiries I receive are related to the claim by the insurer for unpaid premiums.
This post could be very brief if I just tell you: meeting the deadlines set in the law will not have problems.
If you notice the title of the article, it talks about how to cancel the insurance and not when to do it.
There are some factors that may go unnoticed and that justify reading this little help guide.
The Insurance Contract Law, since last January 1, establishes that the cancellation of the insurance contract by the policyholder must be notified to the insurer at least one month before its expiration.
You are already clear that you must communicate your desire to cancel the contract within the legal term: at least one month before expiration.
How to cancel insurance efficiently
You should not forget that insurance is a contract in which both parties are bound by a series of commitments regulated by the contract itself and by the law that supports it.
Learning how to cancel the insurance contract and do it efficiently will save you trouble.
Opposition to the extension of the need to communicate in writing so convincing that there are no doubts of your desire. To do this I advise you:
- Certified letter or email addressed to the address that you will have from the insurer in the policy.
- Notify the insurance broker or policy agent. If you do it to the latter, it will have the same effects as if you communicate it directly to the company.
I never recommend using the contact form available on the insurer’s website, because it will most likely end up in the spam tray.
If you are registered as a user on the company’s website, you can use the form provided for this purpose, but make sure that you provide proof of the operation. Print it out on paper or keep the digital file in case you need to use it later.
Using email is not a good idea either unless you keep a digital record of the communication, its content, delivery, and reading. In many cases, it is the same as with the contact form on the web.
What is the expiration date of the receipt?
The duration of the insurance contract will be determined in the policy, it may not set a term exceeding 10 years and the extension may be established for one or more times as long as it does not exceed one year.
The insurance payment must be made in advance of the established duration, therefore the expiration date is the first day of each insurance annuity.
There are certain branches in which the insurance annuity equals the calendar year. In these cases, the expiration date will be on January 1, whatever the date you purchased the insurance.
This is the formula used by insurers in death and especially health insurance. They are also contracts that usually have installment payments. These two circumstances often induce you to think that you can cancel the contract at a different date to maturity.
Request cancellation before December 1, it will only give the company time to confirm that the cancellation is on December 31.
My payment is divided, when can I cancel the insurance?
The payment of the insurance premium is conditional on the duration of the contract. If the duration is for a specified period without the possibility of renewal, the premium will be paid in a single payment.
If, on the other hand, the duration is annual, renewable, the premium earned will be for the same period of time: one year.
To facilitate the payment of the annual premium, companies can assume to charge it in a fractional manner: monthly, quarterly, or semi-annually. This division does not modify the duration of the contract, therefore the expiration date will be the first day of each new extension of the insurance.
Is there a reason to cancel the policy after the deadline?
The latest modification of article 22 of the Insurance Contract Law introduces a new paragraph that improves the rights of the policyholder.
The insurer must notify the policyholder, at least two months before the end of the current period, of any modification of the insurance contract.
This provision is a lifeboat if we want to cancel the contract without having communicated it in a timely manner.
Your insurance premium has been raised, your medical benefits modified or your travel assistance benefits modified, as these are reasons for you to oppose renewing your insurance. These are some of the changes that the insurer must communicate to you two months in advance, so that you can decide in time to extend the insurance.
Hey, watch out! that this does not operate automatically.
The company will try to collect the receipt if you did not communicate the cancellation in time. In your defense, you can argue the failure of the insurer for not communicating the modification according to the law.
How to cancel insurance efficiently has become a longer article than originally intended. The subject required it. You should not take the insurance contract lightly because you could be harmed.
Insurers are not an NGO, their potential is greater than yours. Your best guarantee is to do things according to the law and the contract.
Communicating your desire to the insurer to cancel the insurance using reliable means, will be useful if you have to defend yourself from a non- payment judgment claiming the debt.
Checking the expiration date of the insurance will make your communication more efficient.
But above all, doing it within the legally established period will guarantee its effectiveness.
And if any of this fails, look for the error of the company to cancel the contract.
Further down in the comments you can leave us your answer to these questions.
Has it happened to you that you wanted to cancel the policy and you were out of time?
Can you tell us what you did?