Yes, you can cancel Term life insurance by notifying the life insurance company or your agent that you want to cancel it, or by simply stopping payment of premiums. If you are paying by automatic withdrawal, you may want to formally cancel your policy so that you do not get a charge from your bank for dropping that automatic payment without notice.
There is no surrender charge and no cash value returned when you cancel your policy. If paying your current premium has become a problem, you can look into reducing the face amount in order to bring down the premium.
If you want something longer, you might look into converting your current Term policy into permanent coverage, especially if you have developed a health condition since you first took out your Term policy.
Absolutely, you can cancel your Term Life Insurance Policy. Just be aware of possible consequences.
If you health has become worse, you may not be able to qualify for a policy, at least at a lower rate as when you are healthy. As you get older the rates will go up as well.
Think carefully before cancelling a policy. If you are replacing this policy with another that provides more value, then be sure to wait for an approval you will accept before cancelling this.
You can cancel term life insurance. But should you? If you paid your term life insurance annually and you still have time left before the anniversary date, keep it. If you cancel your term life insurance, be advised you’re canceling coverage. But is that wise? If you have financial obligations and others who depend on you, term life insurance can provide the peace of mind and deliver economic help to those you love.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can you cancel your term life insurance? Yes, you can cancel a term policy a couple of ways. First, simply let the insurance company know in writing that you wish to cancel. They will cancel on the date asked for or the date of receipt of the letter if no cancelation date is given. They will refund any premium unused.
The second way is to let the premium lapse . Why would you do it this way? Because it gives you a grace period to really be sure it's what you want to do.
I remember my first day in this business, there was a couple of people in the office crying in loud voices, "but he didn't mean it" . They were there trying to reinstate a policy that the owner had just cancelled and died like a week later. There was the letter from the insured, demanding his policy be cancelled on a certain date and it was. Unfortunately, he died a few days after.
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There is no surrender charge and no cash value returned when you cancel your policy. If paying your current premium has become a problem, you can look into reducing the face amount in order to bring down the premium.
If you want something longer, you might look into converting your current Term policy into permanent coverage, especially if you have developed a health condition since you first took out your Term policy.
If you health has become worse, you may not be able to qualify for a policy, at least at a lower rate as when you are healthy. As you get older the rates will go up as well.
Think carefully before cancelling a policy. If you are replacing this policy with another that provides more value, then be sure to wait for an approval you will accept before cancelling this.
The second way is to let the premium lapse . Why would you do it this way? Because it gives you a grace period to really be sure it's what you want to do.
I remember my first day in this business, there was a couple of people in the office crying in loud voices, "but he didn't mean it" . They were there trying to reinstate a policy that the owner had just cancelled and died like a week later. There was the letter from the insured, demanding his policy be cancelled on a certain date and it was. Unfortunately, he died a few days after.