What happens if you cancel a life insurance policy?
When you cancel a life insurance policy, you could be entitled to money from your insurance company. However, potential compensation is based on the type of life insurance policy you have. If you cancel a term life insurance policy, you will not receive any money. You stop paying the monthly premium and your coverage ends.
How do I know when I’m ready to cancel my term insurance?
The best way to tell when you’re ready to cancel your term life insurance policy is to keep track of the financial need you have for buying the policy, and when you see that you no longer have that need, you’re probably ready to cancel.
What should you do when your term life policy expires?
When your term life policy expires, you may find that you still need life insurance. You have a couple of options. First, consider converting your term life policy into a permanent whole life insurance or universal life insurance policy. You may feel better having life insurance to pay for your final expenses, like a funeral and burial.