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| Health Insurance |
Insurance policy holders may choose to cancel their insurance policy
at any time for various reasons. Although it is important for many
people to have their families protected in the event of illness, there
are many people who decide to cancel their health insurance policy. One
of the reasons that influence people to cancel a health insurance policy
is because there are other companies that offer better coverage for
lower monthly premiums. Other reasons for canceling a health insurance
policy may include the loss of employment from the person responsible
for paying the premiums.
Insurance Policy Constitutes a Contract!
Perhaps, another reason for requesting a cancellation may be due to
the family’s relocation. For whatever reason it may be, it is always
recommended to request a health insurance cancellation in writing
because an insurance policy constitutes a contract where the insured
agrees and accepts the terms set forth in the contract. Of note, it is
important to be aware that only the policyholder is entitled to make any
cancellations on the health insurance policy. Also, in cases where
there is more than one person insured, only the primary policyholder can
proceed to cancel the policy. Despite the fact that canceling a health
insurance policy may appear bothersome to many, if one follows an
organized series of steps for obtaining a cancellation, this should be a
fast, non-complicated process:
Check Your Policy:
Most policies are individually tailored according to the needs of
their clients. The first step for canceling a health insurance policy is
to review the provisions of one’s policy noting the rights and
responsibilities for each policyholder. Many policies include guidance
on cancellation steps from the insurer. For instance, instructions on
how to cancel, days of notice, and to whom should the cancellation
letter be addressed to.
Write a General Letter:
Every letter written for any reasons should always contain general
information that helps the company identify the insured: date, insurance
company name and address, service requested, policy number, policy
period, insurer’s name, phone number and address, as well as the date on
which the insured would like the insurance to end.
Provide Reasons for Cancellation:
The letter should provide the insurance company the policyholder’s
reasons for requesting the cancellation. It does not have to be
detailed, although it has to be clear enough to support your claims.
Perhaps, the company where the cancellation is being requested may even
match its competitor’s offer if the reasons for said request are due to
better and cheaper coverage.
Submit Your Cancellation Letter:
Once the policyholder has appropriately completed all the required
information necessary for the insurance company to process the claim, it
is time for submitting the letter for request of cancellation.
Sample 1 - Health Insurance Cancellation Letter
Today’s Date
Attn: Cancellations Department
Insurance Company Name
Insurance Company Address
Attn: Cancellations Department
Insurance Company Name
Insurance Company Address
Re: Cancellation of Policy #:
To Whom It May Concern:
I regret to inform you that I, Name of policyholder along with policy # have decided to terminate my health insurance coverage effective immediately. The reason for my decision is based on finding a more comprehensive coverage for a lower cost. Please, send me a written confirmation of the cancellation for my records at your earliest convenience.
Sincerely,
Name of policyholder
Address
City, State, zip code
To Whom It May Concern:
I regret to inform you that I, Name of policyholder along with policy # have decided to terminate my health insurance coverage effective immediately. The reason for my decision is based on finding a more comprehensive coverage for a lower cost. Please, send me a written confirmation of the cancellation for my records at your earliest convenience.
Sincerely,
Name of policyholder
Address
City, State, zip code
