Cancelling an insurance policy does not automatically cancel the amount owing under a Premium Funding agreement.

The insurance policy and funding agreement are separate arrangements.

What happens to the funding balance? #

If the insurer provides a return premium following cancellation, that amount will generally be applied toward the balance owing under the funding agreement.

The exact process depends on the insurer and funder.

An outstanding balance can remain where, for example:

• The insurer’s refund is less than the funding balance
• A minimum premium applies
• The policy is non-refundable
• Fees or interest remain payable
• Part of the premium has already been earned

Cancellation terms vary between insurers and policies and may involve pro-rata cancellation, short-period cancellation, minimum and deposit premium, non-refundable premium or other conditions.

What should I do before cancelling? #

Do not stop repayments simply because you have requested cancellation of the insurance.

The premium funder will determine the remaining balance and repayment obligations under the funding agreement.

Where possible, contact Webber Insurance before cancelling a Premium Funded policy.

We can help identify:

• The insurer’s cancellation terms
• Any expected return premium
• How the refund is likely to interact with the funding arrangement
• Whether an outstanding balance may remain

The final funding balance is determined under the Premium Funding agreement.

Contact our team before cancelling a policy that is being Premium Funded.