Can you cancel a life insurance policy before its maturity?

Yes, you can cancel a life insurance policy before its maturity. We'll tell you when and how to cancel.

• Before the policy's maturity date to avoid its automatic renewal. The policyholder must request cancellation in writing, giving the company at least one month (30 days) notice prior to policy maturity. It is important to note that, in life insurance policies, maturity occurs at the end of each year from the date of application. If you do not state that you do not wish to renew the policy within the established period, the cancellation will not be effective and it will be renewed automatically.

• Within 14 days of signing the contract life insurance as a contract withdrawal.

Can you cancel a life insurance policy included in a loan?

As in the previous case, yes, it can be cancelled before maturity as stipulated in Act 50/1980 on Insurance Contracts, provided that the established deadlines explained in the previous case are met.

But before cancelling the life insurance policy associated with the mortgage, we must check if we are benefiting from any kind of discount for having taken out this insurance, as banks usually improve the loan's conditions if you take out insurance with them and, by cancelling it, we may lose certain discounts.
 

How can you cancel a life insurance policy before its maturity?

If you are within the timeline established by the Act, you just need to follow a few simple steps to cancel your life insurance before the maturity date. These are as follows:

• Inform the insurance company of your willingness to cancel your life insurance. It is advisable that you do so in writing, by means of a registered letter within 14 days of signing the contract or before the 30 days prior to its maturity date.

• Send the corresponding documentation to initiate the cancellation process. You will need a photocopy of the policyholder's national ID (DNI), passport, or Foreigner Identification Number (NIE), along with the date of the cancellation request. We recommend that you keep a copy of the request in case you need to certify that you have met the established times.