Can I cancel my life insurance policy and get a refund?

Yes. You can cancel any time. During the 30-day cooling-off period you get a full premium refund. After that, term life has no surrender value, so cancelling stops cover going forward.

The cooling-off rules sit in the Insurance Contracts Act 1984 s14 statutory minimum and the panel PDSs, which all extend cooling off to 30 days. The framework below sets out what happens at each stage.

Cooling-off period across the panel

All 9 panel insurers provide a 30-day cooling-off period, which exceeds the Insurance Contracts Act 1984 s14 statutory minimum of 14 days. The cooling-off period starts from the date the policy is issued (or the earlier of stated triggers in the PDS).

Where panel insurers document the 30-day cooling-off period:

• AIA Priority Protection PDS (Version 32, 9 November 2025), 30-day cooling-off period with premiums refunded; cooling off cannot be exercised if a claim has been made.
• Zurich Wealth Protection PDS (1 November 2025): 30-day cooling-off period; cancel for any reason during cooling off.
• TAL Accelerated Protection PDS (12 December 2024): 30-day cooling-off period from the date the policy is issued.
• OnePath OneCare PDS (October 2025): 30-day cooling-off period from the date the policy schedule is issued.
• ClearView ClearChoice PDS (13 May 2024, update 5 June 2025): 30-day cooling-off period from the cover start.
• NEOS Protection PDS (6 December 2024): 30-day cooling-off period from plan commencement, provided no claim has been made.
• Encompass Protection PDS (26 September 2025): 30-day cooling-off period from the earlier of stated triggers.
• Acenda Insurance PDS (27 September 2025): 30-day cooling-off period with premiums refunded if cancelled within the window.
• Futura Protection PDS (1 October 2025): 30-day cooling-off period from plan commencement.

To cancel during cooling off, contact the insurer in writing (email or letter typically; some insurers accept customer-portal cancellations). The insurer cancels the policy and refunds premiums paid, provided no claim has been made or notified.

After cooling off: cancelling a term life policy

Almost all retail life cover on the panel is term life cover, which means the cover lasts for a stated term (often to age 99 or to a stated review age) provided premiums are paid. Term life has no investment component and no surrender value.

If you cancel a term life policy after cooling off:

• Cover ends from the cancellation date (or the next premium due date, depending on the insurer's process).
• No refund is paid for the premium already used to provide cover up to that point.
• A pro-rata refund may be available for the unused portion of an annual or quarterly premium that has been paid in advance.
• You lose the cover. New cover applied for later will be underwritten on your current health and current premium rates, which may be materially worse than the cover you cancelled.

To cancel after cooling off, contact the insurer in writing. The insurer cancels the policy from the requested date.

Whole-of-life policies (rare on the panel)

A small minority of older Australian life insurance policies are whole-of-life or endowment products with an investment component. These are rare in the modern retail market and not typical of the 9 panel insurers' current offerings. Whole-of-life policies may have a surrender value if cancelled, less surrender penalties and adjustments. If you hold a whole-of-life policy, check the PDS for the surrender provisions or contact the insurer for a surrender quote.

Cover held inside super

Life cover held inside super is cancelled by contacting the super fund trustee (not the underlying insurer directly). The trustee then stops premium deductions from your super balance. If you have already paid premium for cover that is yet to expire (rare for monthly billing), the trustee may credit the unused portion back to your balance.

Cancelling super-held cover does not refund premiums already used to provide cover. The 'Putting Members' Interests First' (PMIF) and 'Protecting Your Super' (PYS) reforms also affect how super-held cover is treated for inactive accounts and members under 25.

Insurer-initiated cancellation

The insurer can cancel a policy in restricted circumstances under Insurance Contracts Act s51, most commonly:

• Non-payment of premium, typically after a 30-day grace period and written notice.
• Discovery of fraudulent misrepresentation under ICA s28(2).
• Discovery of non-fraudulent misrepresentation under ICA s28A-D, with proportionate remedies.

The insurer must give written notice and follow the cancellation procedure set out in the PDS. AFCA can review the cancellation if you dispute it.

Common considerations

• Do not cancel an existing policy before the new policy is fully in force. A gap in cover during transition leaves you exposed.
• If you no longer need the same sum insured, ask the insurer about reducing the sum insured rather than cancelling. The premium reduces proportionately and the cover continues.
• If cash flow is the issue, ask about premium options such as moving from level to stepped, or extending the waiting period on attached IP cover. Cancelling life cover is the last lever, not the first.
• New underwriting at older ages or after health changes can be expensive or unsuccessful. The cover you have now is often more valuable than the premium saving from cancelling.
• ASIC MoneySmart at moneysmart.gov.au provides consumer guidance on cancelling insurance and on cooling-off periods.

Regulator anchor: Insurance Contracts Act 1984 s14 (statutory cooling-off minimum 14 days; all 9 panel insurers exceed at 30 days); ICA s51 (insurer-initiated cancellation); ICA s28, s28A-D (insurer remedies for misrepresentation); AFCA (afca.org.au) for dispute resolution.