In a fast-paced world where everything is digitalized now, even many insurance tasks can be completed conveniently online, and canceling a term life insurance policy is no exception. We all understand that life circumstances and financial needs can change with time. While the process of canceling a term life insurance seems daunting, you can make it hassle-free with the right information and guidance. This article will walk you through the steps to cancel a term life insurance policy online.
There are two ways to cancel your term insurance plan either during the free-look period or surrender your policy.
Every term insurance plan comes with a 30-day free look period. In case you are not satisfied with your policy you can cancel the same within the free-look period without paying any charges.
In case you wish to cancel your term insurance policy after the free-look period, you can surrender it. The surrender value is the amount paid by the company once the policy matures. If the policy is surrendered before five years of policy purchase the insurance company may charge you surrender fees. In case you surrender your policy after five years the insurer will not charge you any amount.
Surrender value is not available with term insurance plans.
To cancel your term insurance plan online you should follow the below-mentioned steps.
You should cancel your term insurance policy under the following circumstances:
Practically canceling your term life plan is not an ideal decision. It is the last option you should consider. Canceling a term life insurance policy online is not a complicated process. You just need to understand your policy and its terms and conditions. By exploring and seeking guidance from the expert you can easily do the process.
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Yes, most term life insurance policies can be canceled at any time. But, it is essential to understand the potential financial consequences before proceeding.
You will receive a refund depending on your policy and its terms, you will receive a refund of the premium paid minus any applicable fees or penalties.
If you do not pay the premium amount on time, then the plan will lapse and will not provide any benefits.
Cancelling life insurance is not a good idea, as it is hard to get a new one. However, it might be worth it if the coverage is no longer required.
Term life insurance is less expensive. But it only lasts for a limited period of time. Term policies does not build cash value, so there is no cash surrender value either.
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Himanshu is a seasoned content writer specializing in keeping readers engaged with the insurance industry, term and life insurance developments, etc. With an experience of 2 years in insurance and HR tech, Himanshu simplifies the insurance information and it is completely visible in his content pieces. He believes in making the content understandable to any common man.
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