Cancellation Provision Clause

Insurance companies really prefer that you don't cancel your policies, but they do make it easy if you have property or health insurance. There are also times when they want to cancel on you, generally because you quit paying your premiums.

In all the fine print of your policy, you should see a cancellation provision clause that states that if you or the insurer wants to cancel the policy, they must send a notice in writing. The insurer has to refund any prepaid premiums you made and notify you at least 30 days before the cancellation date. If you send in a request to find out why, they must respond in writing.

An insurance company can't cancel your health insurance policy but you can. There are no cancellation provision clauses in whole life insurance policies, as that is a completely different ballgame with cash accumulation benefits that have to be dealt with.