Cancelling funeral insurance: what you need to know
Cancelling your funeral insurance sounds simple, but there's more to it than you might think. From surrender costs to making your policy paid-up: in this article I lay everything out clearly, so you can make a well-informed decision.
Cancelling your funeral insurance. It sounds like a simple click or a quick phone call, but unfortunately it doesn't work that way. There are multiple routes, costs are involved, and the choice you make has lasting consequences for your next of kin. Yet it's a decision that's being made more and more often. Sometimes because the premium has become too high, sometimes because someone thinks they have enough savings, and sometimes simply because there's doubt about whether the policy still matches their current wishes.
In this article I explain step by step what cancelling a funeral insurance policy involves, what alternatives exist, what it can cost you and your next of kin financially, and when it's better to think twice before taking the plunge.
Why people want to cancel their funeral insurance
The reasons for stopping a funeral insurance policy vary widely. A rising monthly premium, a change in financial circumstances, or the feeling that the policy "has been running for so long and doesn't seem to deliver much" are commonly heard motives. Sometimes someone simply no longer wants the burden and wants to lighten their financial load.
What tends to be underestimated in that situation is how quickly funeral costs have risen in recent years. An analysis by NOS based on CBS data shows that funeral costs have risen by 40 percent over ten years, which is 9 percentage points above general inflation. In 2026, the average funeral in the Netherlands quickly runs to around €9,500, with a burial costing more than a cremation. By comparison, budget organisation Nibud calculated an average of €7,500 back in 2017, a figure that was already unaffordable for 1 in 5 Dutch people at the time.
Cancelling a funeral insurance policy without thinking this through could mean your next of kin end up facing a bill nobody expected.
Practical tip: Before you do anything, request an up-to-date overview from your insurer. That way you know exactly what you're covered for and whether it still matches today's funeral costs.
The two ways to end a funeral insurance policy
If you want to stop your funeral insurance, there are in most cases two options: surrendering or making it paid-up. Those two terms sound similar, but the consequences are very different.
Surrendering means you stop the policy entirely. The insurer pays out the value built up to that point, minus surrender costs. After surrendering, you are no longer insured and nothing will be paid out to your next of kin upon your death.
Making it paid-up is a middle ground: you stop paying premiums, but the policy continues to exist. The coverage becomes lower because no more premiums are being paid in, but your next of kin will still receive a sum upon your death. In many cases this is a better choice than surrendering entirely, because you retain some insured coverage without having to pay anything monthly.
The choice between these two options depends heavily on the type of policy you have: a capital insurance policy (payout in cash), a services-in-kind policy (payout in services) or a combination policy. A services-in-kind policy generally cannot be surrendered for cash, because services rather than a cash amount are insured. Cancellation is possible, but you will receive nothing in return.
Practical tip: Check your policy terms and conditions to find out what type of insurance you have before contacting your insurer. This prevents surprises during the conversation.
Surrender costs: what does the insurer deduct?
If you decide to surrender your funeral insurance, you will not receive the full value that has been built up. Insurers charge administration and surrender costs. These costs vary by provider.
At Monuta, the costs for both surrendering and making the policy paid-up amount to €340 in 2026. This amount is deducted from the built-up value of your policy. For policies taken out after 20 December 2018, a minimum built-up value of €1,500 also applies in order to qualify for making the policy paid-up.
At DELA, different amounts apply. For making a policy paid-up, DELA charges €90 in total: €30 for administration costs and €60 as a so-called departure contribution. Your policy must have a minimum value of €800 at that point. If you make a DELA services policy paid-up, it is converted into a cash policy.
In addition to these costs, it's worth knowing that the surrender value of your policy is not equal to all the premiums you have ever paid. The value is calculated actuarially, taking into account the probability of death and the costs previously incurred. So don't expect to get back everything you put in.
Practical tip: Ask your insurer for a written statement of both the exact surrender value and the paid-up value. Compare those two figures side by side before making a decision.
The notice period and how to cancel
Cancelling a funeral insurance policy does not happen immediately. In almost all cases a notice period of one month applies, calculated from the next premium due date. Have you only recently taken out the policy? Then a statutory cooling-off period of 14 to 30 days applies (depending on the insurer), during which you can cancel free of charge without any financial consequences.
Please note: a funeral insurance policy cannot be cancelled by phone. The cancellation must always be confirmed in writing, usually including a copy of your identity document and bank card. Does your insurer apply a different or longer notice period? You can have this assessed by the Netherlands Authority for the Financial Markets (AFM).
Most major insurers now also offer an online cancellation form, but bear in mind that processing can take several working days to two weeks afterwards. DELA states that after receiving an online request they will make contact within 10 working days.
Practical tip: Always send your cancellation request by registered post or keep a digital confirmation. This gives you proof of the submission date should any questions arise about when the cancellation took effect.
What are the risks of cancelling without an alternative?
Cancelling a funeral insurance policy without having an alternative in place is a step your next of kin may feel the consequences of later. As mentioned earlier, the average funeral in 2026 runs to around €9,500. Those who believe their savings will cover that may be right, but should not forget that an estate is not immediately accessible. Next of kin sometimes have to wait weeks to access the deceased's accounts, while a funeral often needs to be paid for within a few days.
What's more, after a certain age it becomes significantly more expensive, or sometimes even impossible, to take out a new funeral insurance policy. Anyone who wants to take out a policy at a later age will pay a higher premium and may face health declarations or exclusions.
There is also a specific situation for Dutch people who emigrate abroad: some insurers want to terminate the policy as soon as you live outside the Netherlands. Others only draw the line when emigrating outside the European Union. Check this in your policy terms and conditions in advance.
Practical tip: Are you considering emigrating or changing your situation? Then first contact your insurer to find out what the consequences are for your coverage, before proceeding with cancellation.
Alternatives to cancellation that you may not have considered yet
Sometimes cancellation is not the best solution at all, even if the reason is financial. There are alternatives you may not have considered yet.
Making it paid-up is the most obvious alternative and was described in an earlier section. But there are more options:
- Reducing the coverage: With some insurers you can lower the insured amount, which also reduces the monthly premium. You then still retain a basic level of insurance.
- Converting the policy: Sometimes you can switch to a different product with the same insurer that better matches your current wishes or budget.
- Temporarily suspending premium payments: In exceptional cases, payment arrangements may be possible. Contact your insurer for this.
Are you thinking about taking out a new policy after cancelling the old one? Bear in mind that you may need to go through an acceptance procedure again. Insurers such as ASR and DELA each have their own acceptance criteria and product terms that are worth looking into.
Practical tip: Explicitly ask your insurer about all adjustment options before cancelling. Sometimes a small tweak to the policy is enough to reduce the monthly cost without losing the insurance altogether.
Conclusion: you can cancel, but do it consciously
Cancelling your funeral insurance is entirely within your rights. There is no legal obligation to stay insured. But given the ongoing rise in funeral costs, the surrender costs insurers charge, and the higher premiums for a new policy at a later age, it's a decision best not taken in haste.
Making the policy paid-up is in many cases a smarter alternative than surrendering entirely: you retain some coverage without monthly obligations. If you do want to stop completely, make sure you know what the surrender value is, what the notice period is, and whether your next of kin will actually be able to cover the funeral costs when the time comes.
Not sure what the best choice is for your situation? Then take a look at the information pages of a number of major insurers:
Or compare directly which funeral insurance best suits your situation and what the difference is compared to what you currently have.