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Understand How To Cancel Life Insurance
You can cancel Life Insurance if you want.
First of all Life Insurance policy has proven to be quite productive in the past years so you should think carefully before deciding to cancel this policy. Life Insurance polices aren’t for life hence, there might be tangible reasons for wanting to cancel your Life Insurance Policy. Ranging from financial problems to finding a better policy rate, there are steps to follow in achieving that.
Furthermore, you need to know that canceling an insurance policy means that you and your family will lose protection the cover offers. Are you ready for that?
Also, bear in mind that the cost of insurance in future could be higher than with your present policy. So think carefully before taking a step. According to American Council of life insures only 5.7% of individuals had their polices terminated.
Still, terminating a policy isn’t actually a bad idea, but if you will like to stay insured due to the hidden cost, there are other options other than canceling.
What You Need To Know First
There might be may reasons why you may be considering cancelling your insurance policy. Before, you do there are few things to consider.
- If you feel that your current policy no longer meets your needs, you may not have to replace it: Probably, you are thinking of upgrading your term policy to a universal life insurance policy. Or perhaps your permanent life policy death benefits isn’t enough. Whatever the case maybe, the fact is you may be able to change your policy or even add to it to get benefits that you want. You don’t necessarily have to cancel one insurance policy and move to another. Ask your insurance professional about life insurance riders to increase your policy’s limits to meet your needs.
- If you decide to replace your life insurance policy, don’t cancel the old one until you have received and accepted your new policy: Most people know the “free look” provision is allowed and its a period of time immediately following the issuance of life insurance policy, during which you can cancel your policy with complete refund. The “free look” is usually between 10-30 days, so if during this time you change you mind, you can cancel it knowing that your old policy is still in effect.
Steps To Follow Before Cancelling your Life Insurance
There are steps you necessarily need to follow before terminating your Life Insurance.
- Endeavor To Visit The Website: With the advance of technology now, most company should have websites. So, Visit the company’s website to see if they have information about cancellation. Check the Frequently Asked Questions section to see if there is information about who to contact with this kind of case.
- Contact A Broker: Before cancelling your insurance policy, you need to contact an experienced broker and seek for advise. If you don not have a broker, then contact your insurance company to set you up with one.
- Ask About Consequences Of Cancelling: You may be asked to pay cancellation fee. Ask if you will be able to get your money back.
- Try To Keep The Policy: If you are canceling the insurance because of loss of job or low income, then consider if there is a way to make premium payments. You could take a part-time job, or take money from other budget. Also, talk with your insurance company, they might let you reduce the face amount of the policy.
Steps For Cancelling Your Life Insurance
- Follow the official procedure: The company might have a form to fill out. It will ask information about the policy and personal information too. Complete the form and return on time.
- Document Everything: If you need to ask the insurance company any questions, put so in writing.
- Cancel Automatic Payments: Probably, you may have made premiums automatically through your account or maybe with credit card. Contact your bank or credit card company to cancel this automatic payments.
- Follow Up: Write a letter to the insurance company if you continue to receive invoices for premiums. If premium is deducted from your account, kindly ask for a refund.
Finally, when you are done canceling your current insurance policy and you wish to get another Life Insurance Policy. Then you need to proceed quickly to get the policy, also get the quotes and then you can apply.
Do not forget insuring your life today could be the best decision you have taken so far in your life.