You can stop term life insurance in one of two ways. First, you could just stop paying premiums. The policy will go into it's grace period then lapsing after that, about 30 days. The second is to write a letter to the insurance company notifying them of your intentions effective and a date you choose.
I always caution people about canceling any life insurance. You will most likely pay more premiums when you go to apply for more insurance. Also, insurability could be an issue if your health is worse at the time of application or the history has issues in it.
Yes, stopping term life insurance does not have any penalties or cost. If you want to start the policy again, however, you would need to reapply, which means requalifying at the rates for your older age. If you have started any new medication, if your parent has suffered a heart attack, or if you have gained weight, those things will enter into your new rate. So you might want to look into ways to keep your old policy, such as reducing the face amount, before making the decision to stop it.
Stopping a term life insurance policy is fairly easy. The best and preferred way to stop coverage is to write your life insurance company requesting to cancel. All correspondence must be in writing to protect both parties, never just call and cancel. You will receive a confirmation. Most life insurance companies will allow you to reinstate, or change your mind, up to 180 days by paying back premiums. After that time period you will have to reapply for coverage.
The second way to cancel a term life policy is to stop paying your premiums. The policy will lapse after your 31 day grace period. While this method is maybe the easiest, you will receive a lot of correspondence from the carrier, warning the lapse of your policy. It is always best just to write, mail, scan or fax your request and be done.
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I always caution people about canceling any life insurance. You will most likely pay more premiums when you go to apply for more insurance. Also, insurability could be an issue if your health is worse at the time of application or the history has issues in it.
The second way to cancel a term life policy is to stop paying your premiums. The policy will lapse after your 31 day grace period. While this method is maybe the easiest, you will receive a lot of correspondence from the carrier, warning the lapse of your policy. It is always best just to write, mail, scan or fax your request and be done.