If you cancel an insurance policy that has been premium-funded, the process is slightly different compared to cancelling a standard policy. Here are the key things to know:
- Refunds go to the funder – If your insurer issues a pro-rata refund, it will be sent directly to the premium funding provider, not to you.
- Outstanding balance may remain – Depending on how far into the repayment schedule you are, you may still owe money even after the refund is applied.
- Non-refundable policies – Some policies are issued on a “100% Minimum & Deposit” or “Non-Refundable” basis. If this applies, the insurer will not return any premium, and you will still need to complete the repayments under the funding agreement.
- Final figures can vary – The amount payable at cancellation will depend on your insurer’s refund terms, your funding agreement, and how many instalments you have already made.
- Timing matters – In some cases, it may be more cost-effective to wait until the policy expiry date to avoid extra costs.
If you are considering cancelling a funded policy, it is important to speak with us first. We will calculate the final position, explain your options, and help you avoid any unexpected financial impacts.
Contact us to discuss your premium funding arrangements before making any changes to your insurance.
