How to Write a Letter to Cancel a Health Insurance Policy

Even though a health insurance policy is a legally binding contract between you and your provider, you are entitled to cancel your insurance policy at your discretion. When you decide to discontinue your coverage, though, writing and signing the cancellation request serves as evidence of your intention if the insurance provider refuses cancellation for any reason. Only the owner of the policy can cancel the insurance coverage. Keep your letter brief and to the point.

Before you can craft the perfect letter, you should get everything ready. Start by reading through your existing policy to verify the details regarding your right to cancel and the process you must follow. Then, start a document with a standard letter format. Place the date, company name, department name and address on the top left side of the letter. Move down a couple of lines and indicate the subject of the letter. For example, write, "Subject: Cancellation of Health Insurance Policy." Include the policy number in the subject section.

When everything is set up, it's time to write the body of the letter. In the first paragraph, write that the letter serves as a formal request to cancel the referenced insurance policy. Provide the requested effective date of cancellation. When choosing the effective date, be sure that you will have no lapse between the end of the old policy and the start of the new. It's better to be double-insured for a day than uninsured.

Create a second paragraph stating that the provider is to cease any further charges to your credit card, debit card or bank account. You should also include a request for a written confirmation of the cancellation and a refund for any unused premium within 30 days of the letter’s date. Indicate you are available if there are any questions that must be answered. Include the reason for the insurance policy cancellation only if you believe it is necessary. You might also include your policy number and any other relevant information. Once you have written the letter, go back and check for glaring spelling errors or other issues.

Finally, it's time to wrap up your letter. Place your name, address and contact phone number at the bottom of the letter. Include your signature as the policyholder. Then, make a copy of the signed and dated letter for your records. Keep copies of any correspondence between you and the provider. Write down the dates and times of all phone conversations between you and any provider representatives. Continue to monitor the progress until the cancellation is finalized.

When mailing the letter, request a Delivery Confirmation and Return Receipt to serve as proof the letter was delivered to and received by the provider. The Return Receipt requires a signature when the letter is accepted at the health insurance provider’s offices. Sending the letter by Certified Mail is another option. Both choices ensure that the company cannot deny receiving the letter in question.