There are a couple of ways to cancel a life insurance policy. The easiest way is to just stop paying the premiums. Yes, you read that right.
There are no consequences to discontinuing payments – it doesn’t affect your credit and there are no fees or other financial penalties. However, since your payments are automatic, you’ll need to contact a Principled Life broker or your insurance company to stop your payments.
It’s important to remember that canceling a universal life or whole life policy is different than canceling a term life policy because these permanent life insurance policies build cash value. If you plan to cancel a permanent life policy, you should speak to a Principled Life broker about how to handle the cash value component of your policy before canceling.
