Letter to notify cancellation of insurance policy if payment is not made

GUIDELINES

  1. It is a collection letter, but it's a bit different than most collection letters. The more severe ultimatum from your side is to stop the service. In this letter, you won't just make a request for payment; you should also state the benefits of this policy. It will make cancelation sound undesirable. So, it's a persuasive letter.
  2. Remind the customer that the payment is overdue.
  3. State the benefits of your company's insurance policy.
  4. Mention the end date of this policy in the case of non-payment.
  5. Conclude by putting emphasis on sending immediate payment.

SAMPLE LETTER

[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-


Dear [Recipients Name],

Please be reminded that your insurance premium of $80 for the month of June is past due. Your accident insurance is crucial for you and your family, please do your best to remit your premium right away. In the possibility that an accident may occur after you failed to pay your monthly premium, you will not have coverage for losses or litigation. We will wait for your payment until July 10. Otherwise, a lapse will occur. Do not endanger your family's financial security by not paying your premium on time.

Sincerely,

[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -

Letter to notify cancellation of insurance policy if payment is not made.

Further things to consider when writing notify letters to customers

Further things to consider when writing notify letters to customers

Notify Letters

Notify letters are letters sent to inform others about something important. These can be to notify someone of a lawsuit that has been filed against him/her, to inform a home owner that you are planning to move out, or to let various entities know that you have legally changed your name. Notify letters can also be used by companies to inform employees about changes in the company policy or to inform customers about the company's new location. In some cases, these letters have been used by employees prior to their resignation to inform employers that they (employees) will be leaving the company.

When writing notify letters, you need to be clear and direct to the point to avoid confusion. Clearly state the purpose of your letter. Ensure that the tone of the letter matches the announcement. If you are notifying the recipient about a demise, for instance, use a sensitive and empathetic tone. Conclude the letter on a positive note. It is worth noting that some notify letters such as those notifying moving out of rented property or leaving a company should be sent several days in advance. Those about legal matters should bear the necessary signature.

Letters to Customers

Letters to customers are letters written by businesses to people or organizations who buy goods and services from these businesses. These letters can be addressed to specific customers or to all customers, depending on the issue. If you own a business, there are many times you may find it necessary to write to your customers. For example, you may want to send apology letters for billing errors, collection letters to those who owe you money, follow-up letters after initial customers' visits, marketing letters to promote conference events, etc. Constantly writing to your customers is essential as it makes the customers feel valued and strengthens the company-customer relationship.

All letters to customers are formal. Therefore you should maintain a professional tone. Address the customer by his/her name instead of "Dear valued customer". Thank the person for being your customer. Convey your message clearly and concisely without mixing information. Separate important information and label it with subheadings. Avoid putting off the customer with detailed terms and conditions. Instead, put these on a different page. Tell the recipient how to contact you and how to stop receiving letters. Conclude with a positive remark. Write your name and hand sign the letter.

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