How to Cancel a Life Insurance Policy?

How to Cancel a Life Insurance Policy?
Will You Get Refund on Cancelling Your Life Insurance Policy?

Do you think your life insurance policy won’t serve your needs well? Have you realized that you have made the wrong life insurance policy purchase? If so, there’s nothing to worry about! While you may be struggling to adjust to the poor life insurance policy choice you made, the fact is that you can still make an exit from this unworthy investment. Want to know how? Read along!

It must be noted that you can cancel or withdraw your life insurance plan based on the policy purchased. While it may be easy for you to terminate your term insurance at any given time, it would be more challenging for you to cancel a whole life insurance policy.

How to Cancel a Life Insurance Policy?

Below mentioned are some of the key ways that you can implement to cancel your life insurance policy:

Contact Your Policy Provider
Talking to your policy provider would be one of the best ways to cancel your life insurance policy. By informing why you do not wish to continue with your life insurance policy, you would make the whole life insurance policy cancellation process easier.
Cash-out Your Whole Life Insurance Policy
If you are finding cancelling your whole life insurance policy quite challenging, you can opt for cashing it out. Note that one of the best features of a whole life insurance policy is that it has a cash surrender value as well as a surrender period. Under this, if a policyholder cancels the policy during the surrender period, they receive the entire sum after deduction of the penalty amount.
Cancel During Free Look Period
One of the best ways to cancel your life insurance policy would be withdrawing it during the free look period. Learn that a free look period is a term of 10 to 30 days that the insurance company grants to the policyholder. The policyholder can make use of this free-look period and get a complete refund of the premium paid without getting involved in much paperwork.

Will You Get Refund on Cancelling Your Life Insurance Policy?

The process of cancelling a life insurance policy is easy. However, people still face multiple problems while doing so. It is advised to keep in mind that even if you are paying the life insurance policy premium for years, you will not be getting any amount as a refund. Moreover, you must keep in mind that you will not even get the policy coverage once you cancel your life insurance policy. If you want to reapply for a new life insurance policy, you will have to go through the entire process once again.

So, what are you waiting for? Go ahead and get your life insurance policy cancelled today! In case, you need any advice regarding the process, feel free to talk to experts at InsuranceDekho!