Stopping Legal and General Life Insurance: What you need to know

About Legal and General Life Insurance

Legal and General Life Insurance is one of the UK's largest and most established life insurance providers, serving millions of customers across the country since 1836. As a FTSE 100 company, Legal and General offers a comprehensive range of life insurance products designed to provide financial protection for your loved ones in the event of your death. Their policies are underwritten by Legal & General Assurance Society Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

The company provides various life insurance solutions including term life insurance, whole of life cover, over 50s life insurance, and family income benefit policies. What sets Legal and General apart is their straightforward approach to life insurance, with many policies available without medical examinations, competitive pricing, and flexible coverage options that can be tailored to your specific circumstances and budget.

Legal and General operates primarily through online channels, telephone sales, and independent financial advisers, making their products accessible to a wide range of customers. Their policies are designed to pay out a lump sum or regular income to your beneficiaries, helping to cover expenses such as mortgage payments, funeral costs, outstanding debts, or everyday living expenses. The company has consistently received strong financial strength ratings, giving customers confidence in their ability to pay claims when needed.

Most importantly, Legal and General has built a reputation for processing claims efficiently, with the majority of claims paid within a few working days. However, circumstances change, and there are legitimate reasons why policyholders might need to cancel their coverage, which we'll explore throughout this comprehensive guide.

Plans, features and pricing

Legal and General offers several distinct life insurance products, each designed for different customer needs and life stages. Understanding what you're currently paying for is the first step before making any cancellation decision. Let me break down their main offerings so you can see exactly what coverage you might be giving up.

Term life insurance options

Their term life insurance is the most popular product and comes in three main variations. Level term insurance provides a fixed payout amount throughout the policy term, typically ranging from 5 to 40 years. Decreasing term insurance sees the payout amount reduce over time, often used to cover repayment mortgages. Family income benefit pays out a regular tax-free income rather than a lump sum, which can be more suitable for ongoing household expenses.

Pricing for term life insurance varies significantly based on your age, health status, smoking status, occupation, and the level of cover required. As a rough guide, a healthy 30-year-old non-smoker might pay between £8 and £15 monthly for £100,000 of cover over 25 years, whilst a 45-year-old could expect to pay £20 to £40 monthly for similar coverage. Keep in mind these are indicative figures only, and your actual premium will depend on your individual circumstances.

Whole of life insurance

Legal and General's whole of life insurance provides lifetime coverage with guaranteed acceptance for those aged 50 to 80. This product doesn't require medical examinations, making it accessible to those with pre-existing health conditions. Premiums typically range from £10 to £50 monthly depending on your age and desired payout amount, with maximum cover usually capped at £15,000 to £20,000.

One crucial feature to understand is that whole of life policies build up a cash value over time, though Legal and General's products are primarily protection-focused rather than investment vehicles. Additionally, some policies include a fixed premium option where your monthly payment never increases, whilst others may have reviewable premiums that can rise as you age.

Additional features and benefits

Many Legal and General policies come with optional extras that affect your premium. Terminal illness cover is often included as standard, paying out if you're diagnosed with a terminal condition with less than 12 months to live. Critical illness cover can be added to term policies, providing a payout if you're diagnosed with specified serious conditions like cancer, heart attack, or stroke.

Another feature worth mentioning is the conversion option available on some term policies, allowing you to convert to whole of life cover without further medical underwriting. This can be valuable if your health deteriorates during the policy term. Premium payment options also vary, with monthly direct debit being most common, though some customers opt for annual payments to reduce overall costs.

Terms of service and cancellation policy

Before you proceed with cancellation, understanding Legal and General's terms of service is absolutely critical. Life insurance contracts are legally binding agreements with specific rights and obligations on both sides, and knowing these details can save you from costly mistakes.

Cooling-off period explained

First and foremost, if you've recently taken out your policy, you have a statutory cooling-off period of 30 days from either the start date of your policy or the date you received your policy documents, whichever is later. During this window, you can cancel without penalty and receive a full refund of any premiums paid. This is your golden opportunity to cancel if you've changed your mind or found better coverage elsewhere.

Most importantly, the cooling-off period is protected by UK law under the Financial Conduct Authority regulations, so Legal and General cannot refuse your cancellation request during this time. However, you must submit your cancellation request in writing before the 30-day deadline expires. Don't assume that calling them or mentioning it verbally counts – always put it in writing with proof of delivery.

Cancellation after the cooling-off period

After the cooling-off period expires, you still retain the right to cancel your policy at any time. This is a key feature of life insurance contracts – you're never locked in permanently. However, there are important consequences to understand. You will not receive any refund of premiums already paid, as these payments have purchased protection for the period already elapsed.

Additionally, once you cancel a life insurance policy, you cannot simply restart it later if circumstances change. If you want life insurance again in the future, you'll need to apply for a new policy, which means fresh medical underwriting. Keep in mind that you'll be older at that point, possibly with new health conditions, which could result in significantly higher premiums or even declined applications.

Notice periods and final payments

Legal and General typically requires written notice to cancel your policy, and the cancellation becomes effective from the date they process your request. If you pay monthly by direct debit, you should cancel at least 10 working days before your next payment date to avoid another premium being collected. If a payment is taken after you've submitted your cancellation, you're entitled to a refund for that premium.

For annual payment policies, the situation is more complex. If you cancel mid-year, you won't receive a refund for the unused portion of the year. This is standard across the insurance industry because the premium is calculated on an annual basis with a discount for paying upfront. Therefore, if you're considering cancellation and pay annually, timing matters significantly.

Legal requirements for written cancellation

Under UK contract law and FCA regulations, insurance companies must accept cancellation requests in writing. This protects both parties by creating a clear record of your intention to cancel and the date you communicated this decision. Legal and General's policy documents specify that cancellation requests should be sent to their registered office address.

Your cancellation letter must include specific information to be processed efficiently: your full name as it appears on the policy, your policy number, your date of birth, your contact address, and a clear statement that you wish to cancel the policy. You should also specify the date from which you want the cancellation to take effect. Without these details, Legal and General may contact you for clarification, which delays the entire process.

Cancelling by post - the complete guide

Now let's get into the practical steps for cancelling your Legal and General Life Insurance policy by post. This is the method I recommend to every client because it creates an irrefutable paper trail and complies fully with legal requirements. Phone cancellations can be disputed, online portals can have technical issues, but a properly posted letter with proof of delivery is bulletproof evidence.

Why postal cancellation is your best option

First, let me explain why postal cancellation is superior to other methods. When you call to cancel, you're relying on the customer service representative to accurately record your request and process it correctly. I've seen countless cases where customers were told their policy was cancelled, only to find months later that payments continued and no cancellation was recorded. The company has no obligation to accept verbal cancellation requests, and proving what was said in a phone call is nearly impossible.

Similarly, whilst Legal and General offers online account management, not all policy types can be cancelled through the online portal, and technical glitches can occur. Additionally, you won't have independent proof that your cancellation request was submitted and received. With postal cancellation using Recorded Delivery or Special Delivery, you have tracking information and signature confirmation that Legal and General received your letter on a specific date.

Most importantly, if any dispute arises later about whether you cancelled or when you cancelled, your proof of postage and delivery signature provides legal evidence that stands up in court or with the Financial Ombudsman Service. This peace of mind is worth the small cost of recorded postage.

Gathering your policy information

Before you write your cancellation letter, collect all the necessary information. Locate your policy documents and note down your complete policy number – this usually consists of letters and numbers and is essential for identifying your specific policy. Check your most recent policy statement or correspondence for the exact policy number format.

Next, confirm your personal details exactly as they appear on the policy documents. This includes your full legal name, date of birth, and the address registered on the policy. If you've moved house since taking out the policy but haven't updated your address with Legal and General, you should mention both your old registered address and your new correspondence address in your letter.

Additionally, check your payment schedule to understand when your next premium is due. This helps you time your cancellation letter to arrive well before the next payment date, avoiding unnecessary charges. Look at your bank statements to confirm the exact amount being paid and the payment date each month.

Writing your cancellation letter

Your cancellation letter should be clear, concise, and include all necessary information. Start with your current contact details at the top: your full name, address, telephone number, and email address. Then include the date you're writing the letter. Address the letter to "Legal and General Life Insurance Customer Services" and include a clear subject line such as "Cancellation of Life Insurance Policy Number [your policy number]".

In the body of the letter, state clearly and unambiguously that you wish to cancel your life insurance policy. Include your policy number, your date of birth, and specify the cancellation date you're requesting. If you're within the cooling-off period, explicitly state this and request a full refund. If you're cancelling after the cooling-off period, acknowledge that you understand no refund is due.

Keep in mind that you should also instruct Legal and General to cancel any direct debit mandate associated with the policy. Provide your bank account details (last four digits only for security) so they can identify the correct direct debit. Request written confirmation of your cancellation, including confirmation that no further premiums will be collected and that your direct debit has been cancelled.

Finally, sign and date the letter. If you have joint life insurance, both policyholders should sign the cancellation letter. Keep a photocopy or scan of the signed letter for your records before posting it.

The correct postal address for cancellation

This is absolutely critical – you must send your cancellation letter to the correct address. Based on Legal and General's official documentation, cancellation requests should be sent to their registered office address:

• Legal & General Assurance Society Limited
• One Coleman Street
• London
• EC2R 5AA
• United Kingdom

Additionally, some policy documents may direct you to write to their customer service centre in Cardiff. However, the registered office address above is always acceptable for legal notices including cancellations. When addressing your envelope, write the address clearly and ensure the postcode is correct, as this is essential for delivery.

Sending your letter with proof of delivery

Never send your cancellation letter by standard post. Always use Royal Mail Recorded Delivery (Signed For) or Special Delivery. Recorded Delivery costs around £1.85 on top of standard postage and provides tracking and proof of delivery with a signature. Special Delivery costs more (from £6.85) but guarantees next-day delivery by 1pm and includes higher compensation if the letter is lost.

For most cancellations, Recorded Delivery is perfectly adequate. However, if you're cancelling within the cooling-off period and approaching the deadline, Special Delivery ensures your letter arrives the next working day, protecting your right to a full refund. When you post your letter, keep the receipt with the tracking number. You can track your letter online using the Royal Mail tracking service.

Most importantly, don't assume the cancellation is complete just because you've posted the letter. Track the delivery online and make a note of when it was delivered and who signed for it. This information is your proof that Legal and General received your cancellation request on a specific date.

Using services like Postclic for convenience

If you want to save time and ensure your cancellation letter is professionally formatted and properly delivered, services like Postclic can handle the entire process for you. Postclic allows you to create your cancellation letter online, and they print, envelope, and send it via tracked delivery on your behalf. You receive digital proof of postage and delivery, which is stored securely online for future reference.

The advantage of using Postclic is that you don't need to visit the post office, purchase recorded delivery postage, or worry about keeping paper receipts. Everything is handled digitally, and you can initiate the cancellation from your computer or smartphone in minutes. The service typically costs less than £5 including tracked postage, which is comparable to handling it yourself but with added convenience and professional presentation.

Additionally, Postclic ensures your letter includes all the necessary information and is formatted correctly, reducing the risk of delays due to missing details. For people who are busy, uncomfortable writing formal letters, or simply want the peace of mind that comes with professional handling, this type of service can be extremely valuable.

Following up on your cancellation

Once your letter has been delivered, give Legal and General 5-7 working days to process your cancellation. They should send you written confirmation that your policy has been cancelled, the effective cancellation date, and confirmation that your direct debit has been cancelled. If you don't receive this confirmation within 10 working days of delivery, follow up with them.

When following up, call their customer service line and reference your cancellation letter, providing the date it was delivered and the name of the person who signed for it (available from your tracking information). Ask them to confirm that your cancellation has been processed and request that written confirmation be sent immediately. Make a note of the date and time you called, the name of the person you spoke to, and what they told you.

Keep in mind that you should also monitor your bank account to ensure no further premiums are taken after the cancellation date. If a payment is collected after your cancellation should have taken effect, contact Legal and General immediately to request a refund and provide evidence of your cancellation letter delivery date. Under FCA regulations, they must refund any premiums collected after you cancelled.

Cancelling your direct debit

Whilst your cancellation letter should instruct Legal and General to cancel your direct debit, I always recommend also contacting your bank directly to cancel the direct debit mandate. This provides double protection against further payments being taken. You can cancel a direct debit through your online banking, by phone, or by visiting your bank branch.

However, be aware that cancelling the direct debit without first cancelling the policy with Legal and General can cause problems. If you simply stop payments without officially cancelling, Legal and General may treat your policy as "lapsed" rather than cancelled, and you could receive debt collection letters for missed premiums. Always cancel the policy first, then cancel the direct debit as a backup measure.

Tips from former members

Having helped thousands of people cancel their Legal and General policies over the years, I've gathered valuable insights from their experiences. These practical tips can help you avoid common pitfalls and ensure your cancellation goes smoothly.

Common reasons people cancel

Understanding why others have cancelled can help you evaluate whether cancellation is the right decision for you. The most common reason I see is financial pressure – when household budgets tighten, life insurance premiums can feel like an unnecessary expense. However, many people later regret this decision when they try to get life insurance again and face much higher premiums or medical exclusions.

Another frequent reason is finding cheaper cover elsewhere. The life insurance market is highly competitive, and you may find similar coverage at a lower price, especially if you took out your Legal and General policy several years ago. If this is your situation, make absolutely certain your new policy is active and confirmed before cancelling your existing coverage. Never leave yourself uninsured during the transition period.

Some people cancel because their circumstances have changed – children have grown up and become financially independent, mortgages have been paid off, or they've accumulated sufficient savings that their dependents would be financially secure without insurance. These can be valid reasons, but consider whether other financial obligations remain, such as funeral costs or inheritance tax planning.

Additionally, I've seen people cancel due to dissatisfaction with premium increases on reviewable policies or confusion about what their policy actually covers. If this is your situation, speak to Legal and General first – they may be able to adjust your coverage or explain benefits you weren't aware of, potentially resolving the issue without cancellation.

Mistakes to avoid during cancellation

The biggest mistake people make is cancelling by phone and assuming it's done. I cannot stress this enough – always cancel in writing with proof of delivery. I've dealt with numerous cases where people cancelled by phone, stopped checking their bank statements, and discovered months or even years later that payments had continued and no cancellation was recorded. Getting refunds in these situations is extremely difficult because you have no proof of your cancellation request.

Another common error is cancelling your direct debit before officially cancelling the policy. This creates administrative complications and can result in debt collection activity. Always cancel the policy first through proper written notice, receive confirmation, and only then cancel the direct debit as a backup measure.

Keep in mind that failing to keep copies of all correspondence is another frequent mistake. Save copies of your cancellation letter, proof of postage, tracking information, delivery confirmation, and all subsequent correspondence with Legal and General. If any dispute arises, these documents are essential. Store them securely for at least two years after cancellation.

Many people also cancel impulsively during financial stress without considering alternatives. Before cancelling, explore whether Legal and General offers premium holidays, reduced coverage options, or other flexibility that might help you through a temporary difficult period whilst maintaining some level of protection. Once you cancel, getting new coverage later will likely cost significantly more.

What happens after cancellation

Once your cancellation is confirmed, your life insurance coverage ends immediately. There is no grace period or continued coverage. If something were to happen to you after the cancellation date, no payout would be made to your beneficiaries. This sounds obvious, but I've encountered people who assumed they had some kind of residual coverage for a short period after cancellation – you do not.

Your direct debit should be cancelled automatically, but as mentioned earlier, monitor your bank account for at least two months after cancellation to ensure no further payments are taken. If a payment is collected, you're entitled to a refund, but you'll need to contact Legal and General and provide evidence of your cancellation date to claim it.

Additionally, if you had critical illness cover as part of your policy, this also ends when you cancel. Critical illness cover becomes increasingly difficult and expensive to obtain as you age or if you develop health conditions, so consider carefully whether you're giving up valuable protection that would be hard to replace.

Alternatives to complete cancellation

Before you commit to cancellation, explore alternatives that might address your concerns whilst maintaining some level of coverage. Legal and General may allow you to reduce your coverage amount, which would lower your premium whilst keeping the policy active. This can be a good compromise if affordability is your main concern.

Some policies offer premium holidays, allowing you to pause payments for a specified period during financial hardship. Your coverage may be suspended during this time, but you can resume the policy later without fresh medical underwriting. This option isn't available on all policy types, but it's worth enquiring about if temporary financial pressure is driving your cancellation decision.

If you're cancelling because you've found cheaper cover, consider whether the new policy truly offers equivalent protection. Check the exclusions, the financial strength rating of the new insurer, and whether features like terminal illness cover or conversion options are included. Sometimes a slightly higher premium buys significantly better protection.

Final advice from someone who's seen it all

After processing thousands of cancellations, my final piece of advice is this: take your time with this decision. Life insurance is one of those financial products that seems unnecessary until it's desperately needed. I've spoken to bereaved families who were incredibly grateful that life insurance was in place, and I've spoken to others who deeply regretted that a policy had been cancelled years earlier.

If you're absolutely certain that cancellation is the right decision, follow the postal cancellation process I've outlined. Use Recorded Delivery, keep copies of everything, track the delivery, and follow up to ensure you receive written confirmation. Don't take shortcuts or assume that verbal communication is sufficient – always create a paper trail.

Most importantly, if you're cancelling to switch to another provider, ensure your new policy is active and past its cooling-off period before you cancel your Legal and General cover. Never leave yourself uninsured, even for a few days. The risk isn't worth it, and obtaining new coverage after a health event can be impossible or prohibitively expensive.

Remember that once you cancel, you cannot simply restart the same policy later. Any future life insurance will require fresh medical underwriting at your current age and health status, which will almost certainly result in higher premiums. Make sure you're comfortable with this permanent decision before proceeding with cancellation.