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NSW Cooling Off Period for Income Protection and Life Insurance Policy?

Discussion in 'Insurance Law Forum' started by Greenman, 27 November 2014.

  1. Greenman

    Greenman Member

    27 November 2014
    Likes Received:
    Hi. I took out income and life insurance and cancelled the policy after 1 week. Now the insurance adviser wants to charge me the yearly premium. Isn't there a cooling off period? He tells me because I signed, I have to pay regardless of taking the policy or not.

  2. Sophea

    Sophea Guest

    Hi Greenman,

    I was under the impression that a 14 day cooling off period applied to all life insurance products - perhaps someone else could confirm this?

    I would request a copy of the policy and the documentation that you signed from the broker and see if the documentation sets out your rights to a cooling off period.

    Did you receive something to confirm that you cancelled within the cooling off period? How did you advise your broker you wanted to cancel? Do you have something in writing?
  3. Sarah J

    Sarah J Well-Known Member

    16 July 2014
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    Hi Greenman,

    Did the company contact you through the phone? Did they contact you or did you call them? Basically, any company who signs up a consumer through telemarketing measures must give that person a statutory 10 (business) day cooling off period under new Australian Consumer Law requirements. However, there is no further requirement for insurance companies as far as I know.

    If you wish to get out of the contract, I suggest contacting the Financial Ombudsman Services to enquire and possibly lodge a complaint in to get the matter resolved.
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