Can A Life Insurance Policy Be Cancelled?
June 11, 2014 Leave a comment
A life insurance policy is a unilateral contract.
You can cancel your life insurance policy at anytime for any reason.
The life insurance company is obligated and cannot cancel the contract. The exceptions are for misrepresentation by you during the first two years you are insured under the life insurance policy, or in the event of fraud.
Before you cancel your life insurance, you should explore alternatives with you insurance agent or broker. There may be alternatives such as a life insurance policy change available. In addition, there may be tax consequences if there is a policy gain, which may occur on some permanent life insurance policies.
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