Universal Life Insurance, like any "permanent" insurance policy, needs to be cancelled through the carrier that it is written with. If you have an agent, you can contact him/her and ask for the SURRENDER forms. By requesting and submitting a completed form, the issuing company will refund your Cash Surrender Value at the time of the request and send them to you via check or EFT.
Before cancelling ANY permanent policy, carefully consider your insurability, cash flow, and benefit need, as you may not be able to replace a terminated policy.
You must cancel the policy through the company which issued it. Because your needs may have changed, review your situation with a competent agent. Find out if it is really in YOUR best interest to cancel, surrender for cash, or replace the policy with a newer one. There may be tax advantages to replacing the old policy with a newer universal life policy.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Canceling existing life insurance is not a step to be taken lightly. If the beneficiaries no longer need the protection then cancelling the policy might be appropriate. Contact the agent or company representative and let them know what you desire. In California you might have difficulty surrendering a policy because of community property laws. The company will walk you through the process.
Many people "cancel" their policies by simply stopping paying the premium. That is not a bad way to drop a term policy, but with universal life, you should cancel your policy through the carrier. You may be able to salvage some of the cash value, or even use it to continue your policy until you can afford paying premiums again. It is not your most cost effective choice to just let UL slip away.
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Before cancelling ANY permanent policy, carefully consider your insurability, cash flow, and benefit need, as you may not be able to replace a terminated policy.