How do I change the beneficiary, lower the premium or cancel my policy properly?
A practical guide to what you do with a policy you already have: the law’s 30-calendar-day right to withdraw and its exceptions, changing the beneficiary, lowering the premium, two policies, a certificate for the tax office, moving abroad, and what to do if they kept charging you.
In short
The policy is yours and you can manage it: every change, from the beneficiary to the paying bank, is made in writing and you keep the written confirmation. Before you reduce or cancel, ask exactly what you would lose.
- On a new individual life policy you have 30 calendar days to withdraw by written notice, with exceptions.
- Note the amount, dates and beneficiaries of each policy, and name a contingent beneficiary in writing.
- Pay by standing order and update card details before they expire, so no instalment is missed.
- Ask every year for the premium certificate for your tax return.
From the series “The questions you are afraid to ask”: questions real people ask, with honest answers.
At a glance
- For a new individual life policy you have 30 calendar days to withdraw by written notice; 2 years if the insurer did not give you the required notice.
- The right does not apply, among others, to contracts of six months or less and to contracts that secure a loan.
- Every change, from the beneficiary to the paying bank, is made in writing, and you keep the written confirmation.
- Before you reduce or cancel, ask exactly what you would lose. New cover later is judged on your age and health at that time.
The policy is yours, and you can manage it
“I want to change the beneficiary but I don’t know how.” “I cancelled and they kept taking money.” “The policy is in English and I don’t understand what it says.” Many people feel that once they sign, the policy is “no longer in their hands”. It is not so. There are rules on what you must be told, when you can change your mind, and how each change is made. Here we put them in order.
Withdrawing within 30 days: what the law says
Article 228 of Law 38(I)/2016 gives the holder of an individual life policy 30 calendar days to withdraw by written notice, from when they were told the contract had been concluded. The insurer must attach a notice explaining this right; if it does not, the period becomes two years from the contract. The withdrawal counts from the day the notice is delivered or sent to the address the insurer gave. The money is refunded within one month at the latest, less medical costs the insurer incurred for that policy. On single-premium policies the refund can be reduced if markets fell while the policy was in force.
The right does not apply to contracts lasting six months or less, when the holder is not a natural person (a company, for example), to contracts taken out to secure a loan (unless the insured knew in advance that the loan would not be granted), and to reinsurance. It applies only if the contract is governed by Cyprus law.
The changes made most often
- Beneficiary: a written request by the policyholder, usually on the insurer’s form, and written confirmation. Name a backup beneficiary too. If the policy is assigned to a bank, its consent may be needed.
- Lower premium: a smaller sum insured, removing a rider, or a smaller contribution to a savings policy. Ask in writing what changes in the cover.
- Bank or payment method: a new mandate before the old one closes, so no premium is missed.
- Cancelling after the 30 days: in writing, with proof; ask for the end date, the surrender value and confirmation that the charges stop.
Your questions, one by one
How do I withdraw from a new life policy within the 30 days?
With a written notice to the insurer, at the address it gave you, within 30 calendar days of being told the contract was concluded. Send it in a way that leaves proof, such as registered post or an email with confirmation. The refund comes within one month at the latest, less medical costs incurred for the policy.
Which policies do not have the 30-day right?
Under Article 228: contracts of six months or less, contracts where the holder is not a natural person, contracts to secure a loan (unless the insured knew in advance that the loan would not be granted), and reinsurance. It applies only to contracts governed by Cyprus law. So for mortgage cover, ask before you sign.
What if the insurer never told me about the right to withdraw?
Then, under the law, the period becomes two years from the contract, and the insurer loses the right to reduce the refund for market falls. Keep the documents you received, so it is clear what you were given. If you disagree, make a written complaint.
How do I cancel my policy properly: by phone, email or letter?
Always in writing, by email or letter that leaves proof; a phone call is not enough. Ask for written confirmation with the end date, the surrender value if any, and that the charges stop. If you had tax relief, ask a tax adviser about a possible clawback in the first six years.
I cancelled but they still took money from my account. What do I do?
Send the insurer a copy of the cancellation in writing and ask for the charges to be refunded. Tell your bank about the standing order too. If it is not solved, make a written complaint; the insurer must answer within 45 days, and then you can go to the Financial Ombudsman.
How do I change the beneficiary?
With a written request from the policyholder, usually on the insurer’s form, and you ask for written confirmation. If the policy is assigned to a bank or the beneficiary was named irrevocably, consent may be needed. Check the beneficiary after every big change in your life.
How do I name a contingent (backup) beneficiary?
The same way, in writing. The backup beneficiary receives the benefit if the main one has died before you. It is a simple step that saves a lot of trouble later.
What is the difference between the policyholder, the insured and the beneficiary?
The policyholder owns the contract and pays. The insured is the person whose life or health is covered. The beneficiary receives the money if what the policy covers happens. They can be three different people.
How can I lower my premium?
The usual ways are a smaller sum insured, removing a rider, or a smaller contribution to a savings policy. If you have an automatic yearly increase, ask whether you can decline it one year. Every change also reduces something in the cover, so ask for it in writing.
Can I have two life policies with different companies?
Yes, usually you can, and each policy pays according to its own terms. The application will ask what other cover you have; answer accurately. Keep a list of them all, so your family knows.
If I have two health policies, do both pay the same hospital bill?
Usually not above the actual expense: one bill is not paid twice. Many policies have an “other insurance” clause saying how it is shared. Tell both insurers, and ask whether the second covers what the first did not pay.
How do I read my policy? Which pages actually matter?
Start with the page of policy details: amount, dates, premium, beneficiaries. Then the definitions, exclusions, conditions, claims procedure and cancellation. The law does not require the supervisor to approve terms before they are sold, so it is worth reading them yourself. The “What does my policy say?” tool helps.
Where on my policy do I see the sum insured and the end date?
Usually on the page with the key details, which may be called the “schedule” or “certificate”. If you cannot find them, ask the insurer for a written statement with the amount, the term and the beneficiaries.
I lost my policy number. How do I find it?
Look at your account movements for the standing order, old emails, or the premium certificate for the tax office. Otherwise call or write to the insurer with your ID; it can give it to you after checking who you are.
How do I get a certificate of my policy for the bank or for taxes?
Ask the insurer for it in writing. The Income Tax Law (Article 14) requires insurers to issue a yearly certificate of the premiums paid. For the bank, say exactly what it asks for, so the certificate states it.
How do I change the bank account my premiums are paid from?
Give the insurer a new payment mandate before the old account closes, and ask for confirmation of the first debit date. Check that the first premium from the new account went through, so none is missed.
How do I add a rider, such as accident or critical illness, to my existing policy?
Ask for it in writing. Usually a new health declaration is needed for the rider, and it may have its own waiting periods. Ask for its terms before you sign.
My policy is in English and I don’t understand some words. Can I ask for an explanation in writing?
Yes, and it is worth it. For life insurance, the information before the contract is given in an official language of the Republic for Cyprus residents, and in another language if you ask (Article 227 of Law 38(I)/2016). Our glossary gives every term in Greek, English and Russian.
How do I check if my policy is still active?
Ask the insurer for a written statement of the policy. Also check that the debits go through normally. If a premium was missed, ask straight away what the policy says about a grace period; there is no general time limit in the law that we could confirm.
Can I change from yearly to monthly payments in the middle of the year?
Often yes, from the next anniversary or a date the insurer sets. Ask whether the total yearly cost changes, and ask for written confirmation of the new debit date.
How do I transfer my policy to a new advisor?
Usually with a written request to the insurer saying you want another registered intermediary to serve you. The procedure differs by insurer, so ask it. Your policy and cover do not change because of this.
Can I put the policy in my child’s name when they turn 18?
Some insurers allow a change of policyholder, with a written request and the consent of both. Ask what changes in the beneficiaries, payments and tax. Ask for the procedure in writing.
Am I covered from the moment I sign or from the first payment?
The policy sets this: the start date is written in its details, and it often depends on the application being accepted and the first payment. Ask in writing exactly from when you are covered. Do not cancel an old policy before the new one starts.
I’m moving abroad. What do I do with my policy?
Write to the insurer before you leave and ask whether the policy continues with a new address and account, and whether anything changes in the cover. Update your contact details, so notices reach you. Do not cancel before you have new cover.
Questions worth asking
- Exactly when was I told the contract was concluded, and until when can I withdraw?
- Who are my beneficiaries today, and is there a backup?
- If I lower the premium, exactly what do I lose from the cover?
- What does the policy say if I miss a premium?
What you can do from today
- Find the details page of each policy and note the amount, dates and beneficiaries.
- If you signed recently, mark the 30-day deadline in your calendar.
- Name a backup beneficiary, in writing.
- Make every change in writing, and keep the confirmation in one folder.
- Ask every year for the premium certificate for the tax office.
What went wrong for others — and how to avoid it
- No proof of what was sent, or when. Use email or registered post, ask for a reference number, and keep a log with the date, the person’s name and what was said. For withdrawal, the sending date counts.
- A premium was missed after a card change and the policy lapsed. Pay by standing order from an account that always has funds, and update card details before they expire. A reinstated health plan may start new waiting periods.
- The surrender was delayed or refused. Ask in writing, ask which price date will be used and when you will be paid. If nothing happens, make a written complaint.
Every policy has its own terms. What we write here is general information, not advice; for your own case, what your policy says applies, and it is worth confirming it in writing with your insurer.
Sources
- CyLaw — Law 38(I)/2016, Article 228 (right to withdraw from a life contract)
- CyLaw — Law 38(I)/2016, Article 227 (information before a life contract; language)
- CyLaw — Law 38(I)/2016, Article 224 (policy terms are not pre-approved)
- CyLaw — Income Tax Law 118(I)/2002, Article 14 (deductions; certificate of premiums; surrender)
- CyLaw — Law 41(I)/2017, Article 12 (insurance linked to a housing loan)
- Mondaq (AGP Law), 13 December 2022 — Life insurance in Cyprus (beneficiaries)
- Insurance Companies Control Service (ICCS), Ministry of Finance — Complaints
- Financial Ombudsman of the Republic of Cyprus — Frequently asked questions (in Greek)
Read also: What does my policy say? · Beneficiaries: the mistakes that cost · I missed a premium: what about the grace period · The documents of a policy · Glossary of insurance terms · My life changed: what do I change in my policy?
If you would like a second look, book an appointment with an advisor and bring your policy and your questions. You will go through them together, with no obligation.
