Writing An Insurance Cancellation Hardship Letter

There are a lot of reasons as to why you may want to cancel your insurance policy. Often, it is because of getting a better rate, or you simply do not need the insurance anymore. However, sometimes, it is because of financial hardship.

Handle the Situation Carefully to Avoid Miscommunication

It is very important that you handle this situation properly. If you don’t, then it is likely that there will be some miscommunication and you may find yourself having to pay various charges. It is important, therefore, that you also write your letter at the right time. Check your insurance policy so that you know which cancellation rules are in place. Make sure that you meet those requirements and find out what you should do next.

In most cases, you won’t be able to ask for a hardship cancellation over the telephone. Rather, you will have to contact the company in writing, meeting whichever cancellation policies they have in place. Often, they have a form that you have to complete, which you may also be able to find on their website. Either way, they do generally look for similar things.

Common Requirements by Insurance Companies

One of those things is a clear reason why you want to cancel your policy. In cases of hardship, you need to make sure that you indicate exactly what has happened that has left you in such a situation. You also have to make it clear, in this case, that the situation is not due to their service, but rather that there have been events that were beyond your control.

What to Include in Your Hardship Letter

You also have to make sure that the insurance company can easily find you. Hence, you must include your name and address, as well as your policy number. You also have to make sure that you include details of the payments that you have already made. You want them to make a special exception for you, allowing you to end your contract before the date is due, and this means that you have to give them reasons to do so. For instance, you should tell them if you have always made your payments on time, or if you still have, and aim to keep, other types of insurance with the same company.

Difficulties That You May Encounter

In most cases, insurance policies can simply be canceled. However, there are situations in which that is not possible, particularly if you have taken out a contract with a fixed end date. One key difficulty that you may encounter here, is if you want your insurance company to provide you with a refund for any money that you have already paid towards your insurance policy for future months. You will have to give very clear reasons as to why you believe your insurance should not just be canceled, but also that you should get a refund. There are certain situations in which this would be accepted, for instance, if you have experienced a sudden loss of work, if there has been a death in the family, or if you have received substantial medical bills after an illness.

Insurance Cancellation Hardship Letter Example

{Phone #}


Dear {representative}:

I am in the fight of my life against {disease}. It is a fight in which the odds are statistically against me. It is a fight that demands my singular focus. Bizarrely, I must simultaneously wage a battle for preservation of my medical insurance benefits.

Throughout my debilitating treatment, the clock has been ticking. During radiation, the letters came: my job will be held for {time period} but I will lose my health benefits in {time period}. In a post-chemo fog, I opened another letter stating that {time period} is fast-approaching and I must either return to work or file for COBRA benefits. I cannot return to work at this time. Not only can I barely walk across my living room on bad days, {disease} legally bars me from driving until six months have passed since {my last seizure}. COBRA payments far exceed what I am receiving in short-term disability benefits; in fact, the {amount} payment quoted is {double our mortgage}.

I remain optimistic about my survival. And I have great faith in my fellow humans: several kind-hearted coworkers have graciously donated sick leave hours to me. Still, I fall short of the {threshold} required by {time period}.

I cannot overstate my sense of outrage and fear at the injustice and irony of losing my health coverage due to a health crisis.

Please fix this.


{Sender Name}

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