Is this a mortgage protection life asssurance or general life assurance policy? In either case (but especially in the former) you should put the new policy in place before cancelling the old one. To cancel the old one write to the life assurance provider (and mortgage lender if applicable) to inform them and cancel any direct debits etc. Unless there is some savings plan attached to the life assurance policy (not great products in general) then you don't get any money back. You have not "lost" this money as until now it was paying to assure/insure the risk of you kicking the bucket.