Canceling Whole Life Insurance
You will need to provide them with written notice of cancellation, and you may also be required to submit a copy of your death certificate. Once the insurance company receives your cancellation notice, they will process it and send you a check for your policy's cash value.
Can I cancel whole life insurance?
Can you cancel a life insurance policy at any time? Yes, you can, although the only way to get back all your premium payments is to do so during the initial free look period.
What happens to the money if you cancel a life insurance policy?
If applicable, the insurance company will refund you when you cancel your life insurance policy. However, this refund will be less than the total amount you paid into the policy. This is because the insurance company has to pay for the costs of administering the policy and any fees associated with canceling the policy.
Does whole life have a surrender charge?
In the first few years of holding a whole life policy, you may not be able to cash it out at all. And if you do, you can be charged 10% or more of the cash value in fees. After ten or more years of holding the policy the surrender fees often go down to 1% or may not be charged at all.
Should I cash out my whole life policy?
While it isn't always advisable to cash out your life insurance policy, many advisors recommend waiting at least 10 to 15 years for your cash value to grow. It may be wise to reach out to your insurance agent or a retirement specialist before cashing in a whole life insurance policy.