Can Life Insurance Be Canceled?


People buy life insurance to protect their family financially in the event of their death. Life insurance can be canceled for several reasons by either the policy owner or the insurance company.


You can buy either term life insurance, which is in effect for a specified period of time and then expires, or whole or universal life insurance, which is in effect until the insured dies or the policy is canceled. You can buy life insurance on your own or as part of a group plan.

Insurer Cancellation

An insurer can cancel a life insurance policy if there is evidence that the policyholder withheld or misrepresented information on the application, or if the policyholder fails to make premium payments.

Policy Owner Cancellation

The policy owner can cancel coverage at any time. To cancel coverage, you should write a letter to the insurance company. You might have to pay a surrender charge to cancel coverage.

Group Coverage

Group policies can be canceled if the policy owner no longer is part of the group providing the coverage or is no longer employed by the company sponsoring the plan.


If the policyholder stops paying premiums as a way to cancel the policy, without writing a letter of cancellation, the insurance company can report the unpaid premiums to the credit bureaus. Also if the cancellation is caused by misrepresentations made on the application, the policy owner can be charged with insurance fraud.

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