Cancellation of credit insurance – is it possible?

The risk associated with granting a loan can be high. Therefore, banks are pushing customers to buy insurance. Credit insurance is designed to secure the interests of both parties.

Borrowers are certain that in the event of an unfortunate event, the insurer will repay the cash loan on their behalf, while the lenders will recover the borrowed funds, no matter who reimburses them. Insurance can have a different scope of protection – in the event of death, loss of job or life.

Policies are available for different types of loans. However, when it comes to the mortgage, the amount from the policy may not be enough to cover it fully, which is why the borrower sometimes additionally needs to take out property insurance from the so-called transfer.

Such a policy protects property from random events and has an insurance sum of at least the amount of the liability incurred.

Can I opt-out of credit insurance?


Much depends on the entries in the signed credit agreement. In one bank, resignation from credit insurance is only possible when the debt value decreases, in another at any stage of the contract duration. It is good to read the details of the loan agreement if we plan to change its terms.

You can opt-out of insurance because, according to the Act of May 22, 2003, on compulsory insurance, the Insurance Guarantee Fund, and the Polish Motor Insurers’ Bureau, it is not mandatory. Unfortunately, rejection of insurance already at the stage of applying for a loan often affects the decision to grant it.

To sum up – if we bought insurance, but after thinking about the matter, we came to the conclusion that we do not need it, you can opt-out. The only question is whether it really pays off.

As it was mentioned, insurance is a security for the bank’s repayment of the loan, therefore, if we deprive it of this protection, it may change the terms of repayment of the remaining amount to worse to compensate for its lack.

In what situations can you opt-out of credit insurance?


If it is only possible to opt-out of credit insurance while it is in our bank, you can take this step in every situation. However, the decision to reject insurance coverage must be well thought out.

The first step you should take when you feel that you do not need insurance coverage is to read the terms of the loan agreement carefully. If any of the issues you don’t understand, contact your bank representative and ask for clarification.

The loan agreement may contain a provision regarding the amount of the margin or the interest rate on the unsecured loan. In the end, the bank has to go out of its way, so it uses all means to achieve this.

However, if you decide that the rejection of protection pays you anyway, below you will read how to opt-out of credit insurance step by step.

This may interest you: Loan with insurance – is it worth it?

In which banks can you opt-out of credit insurance?


When we agree on a loan with insurance, we protect ourselves and our family. However, if you are sure that you can cope with the repayment of the remaining part of the liability and resignation from the protection will be beneficial for you, check whether your bank allows it.

The table shows that the largest banks in Poland give their clients the option to opt-out of protection at any stage of the contract duration. Now that you know you can apply for cancellation, find out how to do it.

The application for resignation from credit insurance – how to write it?

Each bank has its own specimen letter to resign from credit insurance. In each institution, however, such an application should contain the following data:

  • borrower’s name and surname,
  • Borrower’s PESEL,
  • borrower’s date of birth,
  • credit agreement number,
  • insurance policy series and number,
  • borrower’s signature.

You can certainly find a model application for resignation from credit insurance on the website of your bank or branch. Send the completed application by post or submit it in person.

Cancellation of cash loan insurance

Since you already know the answer to the question of whether you can opt-out of cash loan insurance, you need to decide on the appropriateness of this solution in your case.

If your opinion on this matter has still not changed, write and submit your resignation from credit insurance. You will do it in 3 easy steps:

  1. Check the most important elements of the loan such as commission and interest rate, making sure that despite the resignation from the protection, the terms of the contract will not change, and if so, slightly. Recalculate costs and think again.
  2. Fill out the completed application for resignation from credit insurance or write a declaration of termination of the insurance contract yourself.
  3. If the loan insurance contract provides for a refund of the premium for the period of unused insurance coverage, wait for the refund of the funds paid.

Cancellation of mortgage insurance


Credit insurance applies to all types of liabilities, including the mortgage. It does not always pay as much as in this case. Although giving up mortgage insurance is an option, it’s not worth doing because of the high costs of this commitment.

Despite the higher costs of credit, insurance is a security for us, which will protect us and our loved ones from the consequences of unforeseen events.

However, if you want to opt-out of mortgage insurance, just like in the case of cash loans, prepare and submit the appropriate application. The data needed to complete it remain the same.


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