Agent, Rural Mutual Insurance Co., Union Grove, WI
That is truly up to the policy owner. If you are purchasing a new policy that is providing for your coverage needs better than the current policy then it may. In most cases though depending on the amount of time that the life insurance policy has been in effect, it is not recommended to cancel a life insurance policy unless it is absolutely necessary. All licensed agent are ethically obligated to provide information that helps the proposed client make a decision that is in their best interest not that of the agent.
It is OK to cancel life insurance. If you have a permanent policy, there may be a surrender charge applied during the first years of the policy, which will reduce the amount of cash value that you get. However, you will not have to pay extra money to cancel your policy, whether it is Term, Whole or Universal Life.
Sometimes there are other options than cancelling a policy, that can help you hold onto the death benefit while still lowering your premium. But if you do decide to cancel, be sure your new policy is approved and in effect before you drop the old one.
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Sometimes there are other options than cancelling a policy, that can help you hold onto the death benefit while still lowering your premium. But if you do decide to cancel, be sure your new policy is approved and in effect before you drop the old one.