People buy life insurance for a purpose, whether it's to replace their income, cover debts, send a child to college, or for many other reasons. Sometimes it makes sense to cancel a life insurance policy if the need has been met, such as raising children or paying off a debt. Regardless of why you cancel a life insurance policy, it's relatively easy to do so. The process depends on the type of life insurance policy you have.
Contact your insurer right away and let them know that you didn't pay because you didn't want the policy. They may allow you to request a cancellation and stop the non-payment. In some circumstances, if you insured yourself elsewhere, you can ask your new representative to help you by sending proof of your new insurance to the old insurance representative, along with a note stating that the policy is not mandatory and that you have been insured elsewhere. One of the main reasons an insurance company would cancel your life insurance policy is because of non-payment.
Keep in mind that if you cancel full life insurance in the first 10 or 20 years, you may have to pay cancellation fees, which can greatly reduce the lump sum you receive from the insurance company. Google “how do I cancel my insurance policy” or “how do I cancel your car insurance” and you'll get a variety of results. Insurance companies can no longer cancel your coverage just because you or your employer made a mistake in your insurance application. You may have to cancel your car insurance for a variety of reasons, but it's important to consider your plan beforehand so you don't have coverage.
If you cancel your insurance policy instead of suspending it, your insurance company will likely view this interruption as a lapse in coverage and that your insurance premium will increase. Call them and try to reach an agreement. The consequences of a cancellation due to non-payment are severe in the insurance world, and it may be difficult for you to find reasonably priced insurance after having a cancellation on record. If you need to cancel your car insurance policy, the Bankrate guide can help you take the necessary steps to do so.
The proof of insurance you get from your new insurance company should allow you to resolve the problem if the policy term for both policies is the same. Insurance policies are legal contracts that grant rights and responsibilities to both the insurer and the policy holder.