How to cancel whole life insurance?
December 20, 2021 12:10 AM Subscribe
Asking for a friend: I’m almost certain that I want to cancel my whole life policy, and I’d like to know more about what exactly I need to do in order to accomplish this.
About five years ago, I acquired a whole life insurance policy through the financial advisor of my parents-in-law. It was a decision that made sense under a specific set of circumstances, but those circumstances have changed, and I don’t feel good about continuing to pay $100 a month in premiums.
The issue is that I get overwhelmed whenever I think about dealing with the policy. I really don’t like dealing with the financial advisor, and I would prefer not to have to speak with him if at all possible. At the same time, it’s hard to get much useful information from the insurance company website, for example, whether any surrender fees apply or what the cash value of the policy is.
Possibly relevant factors: 1) I’m no longer living in the US, where the policy is held, though I still pay taxes there 2) I do have another life insurance policy (though it is through my employer) 3) I have accepted that the money I have sunk into premiums is gone forever, but if the policy does have a tiny amount of cash value that just raises more questions about what to do.
I've seen a bunch of articles online about how to decide whether or not to cancel a policy, but not so much about what that process actually looks like. I’m hoping someone can give me a sense of how it typically goes and/or whether I should be able to accomplish it primarily over email (or, even better, by speaking to someone on their customer service line). Thanks in advance.
About five years ago, I acquired a whole life insurance policy through the financial advisor of my parents-in-law. It was a decision that made sense under a specific set of circumstances, but those circumstances have changed, and I don’t feel good about continuing to pay $100 a month in premiums.
The issue is that I get overwhelmed whenever I think about dealing with the policy. I really don’t like dealing with the financial advisor, and I would prefer not to have to speak with him if at all possible. At the same time, it’s hard to get much useful information from the insurance company website, for example, whether any surrender fees apply or what the cash value of the policy is.
Possibly relevant factors: 1) I’m no longer living in the US, where the policy is held, though I still pay taxes there 2) I do have another life insurance policy (though it is through my employer) 3) I have accepted that the money I have sunk into premiums is gone forever, but if the policy does have a tiny amount of cash value that just raises more questions about what to do.
I've seen a bunch of articles online about how to decide whether or not to cancel a policy, but not so much about what that process actually looks like. I’m hoping someone can give me a sense of how it typically goes and/or whether I should be able to accomplish it primarily over email (or, even better, by speaking to someone on their customer service line). Thanks in advance.
It's actually really simple, as Thorzdad notes. Just contact them and ask to surrender, and they should provide you with all of the details that you need.
From the time that I asked about it to the time that the cashout value was dropped into my bank account was less than week.
posted by anotheraccount at 6:00 AM on December 20, 2021
From the time that I asked about it to the time that the cashout value was dropped into my bank account was less than week.
posted by anotheraccount at 6:00 AM on December 20, 2021
Best answer: I agree with the above. Keep in mind that when you contact them with this request, they will first try to talk you out of it. Rather than listening to any of that, just keep repeating, "I do not want this policy anymore," and don't answer any of the questions they may have that are designed to lead you toward retaining it.
posted by beagle at 8:01 AM on December 20, 2021
posted by beagle at 8:01 AM on December 20, 2021
Your cash value might be around $5,000, BTW, assuming you have paid in $100 a month for about five years.
posted by beagle at 8:05 AM on December 20, 2021 [2 favorites]
posted by beagle at 8:05 AM on December 20, 2021 [2 favorites]
I, too, had no trouble at all.
As beagle says, they may go over your other options. In my mind, this is just due diligence. It's unreasonable to let people think surrender is the only choice when they really want the policy but don't have the funds this month.
posted by SemiSalt at 8:57 AM on December 20, 2021
As beagle says, they may go over your other options. In my mind, this is just due diligence. It's unreasonable to let people think surrender is the only choice when they really want the policy but don't have the funds this month.
posted by SemiSalt at 8:57 AM on December 20, 2021
Praemunire: skip the salesman, call the company directly.
posted by SemiSalt at 10:10 AM on December 20, 2021
posted by SemiSalt at 10:10 AM on December 20, 2021
Response by poster: Happy to report that the cancellation process was straightforward, with the cash value remitted to policy owner in about ten days. Thanks for your help, everyone!
posted by mustard seeds at 7:59 PM on January 4, 2022
posted by mustard seeds at 7:59 PM on January 4, 2022
This thread is closed to new comments.
Alternatively, you can just stop paying the premiums and they'll start contacting you. I think it's best that you initiate the process, though.
posted by Thorzdad at 4:49 AM on December 20, 2021 [2 favorites]