Term Life Insurance Articles
3 Reasons To Cancel A Term Life Insurance Policy
2011-08-02
Term life insurance cancellations are easily accomplished. Simply stop paying the premiums. There are no penalties for doing so. Also, you are under no obligation to notify the company that issued your life insurance policy, but it would be a good idea.
At some point you might decide to apply for another policy. Additional medical exams could be required. Some insurers will allow your medical results to remain valid for up to six months from the time you sign a new application. Take care to consider if cancelling your term life insurance coverage is in your best interest. You owe the insurer money for continued coverage, but it's your decision to keep making the payments. Do so with thoughtful deliberation.
There are some good reasons to kill your life insurance policy. Does the math indicate you were oversold? If your annual income is $30,000, and you have no assets to speak of, a $15,000 term life policy really serves little purpose.
Ask yourself if a life insurance policy is really needed. No family to provide for, assets of little value and no one to inherit your properties are just a few reasons why it isn't. Also, should news leak out that your insurance company is spilling red ink, think strongly about a cancellation. Nothing could be worse than paying years of premiums into a company that can't pay as promised.
Just as there are good reasons to drop term life insurance, there are some that make it an attractive item. Consider what it will take to keep your family comfortable if you are gone. Your children depend on you while you're alive---that shouldn't change when you're gone.
Don't listen to the naysayers who complain that life insurance is a money pit you can't afford to help fill. Neither should you pay attention to someone who castigates insurance agents. Decide for yourself if you trust the agent handling your insurance needs.
Remember that the laws are in your favor when it comes to dropping a term life insurance policy. Insurance companies must notify you by registered letter if your policy is being cancelled. You don't need to do so yourself, but it's probably best that you alert the insurer about your plan to stop paying premiums. You might get contacted by the company to say you should reconsider. Be polite and go your own way.
The cancellation key always depends on how much protection your family needs. Of course, having no family makes your decision a lot easier and cheaper, but family should be made aware your life insurance plans.
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Term life insurance cancellations are easily accomplished. Simply stop paying the premiums. There are no penalties for doing so. Also, you are under no obligation to notify the company that issued your life insurance policy, but it would be a good idea.
At some point you might decide to apply for another policy. Additional medical exams could be required. Some insurers will allow your medical results to remain valid for up to six months from the time you sign a new application. Take care to consider if cancelling your term life insurance coverage is in your best interest. You owe the insurer money for continued coverage, but it's your decision to keep making the payments. Do so with thoughtful deliberation.
There are some good reasons to kill your life insurance policy. Does the math indicate you were oversold? If your annual income is $30,000, and you have no assets to speak of, a $15,000 term life policy really serves little purpose.
Ask yourself if a life insurance policy is really needed. No family to provide for, assets of little value and no one to inherit your properties are just a few reasons why it isn't. Also, should news leak out that your insurance company is spilling red ink, think strongly about a cancellation. Nothing could be worse than paying years of premiums into a company that can't pay as promised.
Just as there are good reasons to drop term life insurance, there are some that make it an attractive item. Consider what it will take to keep your family comfortable if you are gone. Your children depend on you while you're alive---that shouldn't change when you're gone.
Don't listen to the naysayers who complain that life insurance is a money pit you can't afford to help fill. Neither should you pay attention to someone who castigates insurance agents. Decide for yourself if you trust the agent handling your insurance needs.
Remember that the laws are in your favor when it comes to dropping a term life insurance policy. Insurance companies must notify you by registered letter if your policy is being cancelled. You don't need to do so yourself, but it's probably best that you alert the insurer about your plan to stop paying premiums. You might get contacted by the company to say you should reconsider. Be polite and go your own way.
The cancellation key always depends on how much protection your family needs. Of course, having no family makes your decision a lot easier and cheaper, but family should be made aware your life insurance plans.
