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

Yes, you can cancel your Australian life insurance policy at any time, but refund entitlements depend on timing and policy type. During the cooling-off period (typically 14-30 days from policy commencement or when you receive your PDS, whichever is later), you can cancel and receive a full refund of premiums paid, minus any costs the insurer has already incurred. To cancel during this period, contact the insurer in writing before the cooling-off period expires. After the cooling-off period, you can still cancel anytime by notifying the insurer in writing, but refund rules differ by policy type. For term life insurance (most common type in Australia), there is no cash value or surrender value – if you cancel, you simply stop paying premiums and lose coverage. You won't get refunds for past premiums, as you've already received protection during that period. Some policies offer pro-rata refunds for unused portions of annual premiums if you cancel mid-year. For whole of life or investment-linked policies (rare in modern Australian market), there may be surrender values or cash values accumulated, though early surrender often involves penalties. Life insurance held through superannuation can be cancelled by contacting your super fund, which stops premium deductions from your balance. Before cancelling any life insurance policy, carefully consider whether you still need coverage, whether your family would face financial hardship from your death, if you can get new coverage if needed (your health may have declined, making new insurance expensive or impossible), and whether reducing coverage or switching to stepped premiums might be better alternatives to complete cancellation. If changing insurers, maintain your old policy until the new one is confirmed and active to avoid gaps in coverage.