How to Surrender Life Insurance Policy

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If you decide that your life insurance policy is no longer necessary, you can easily cancel your coverage and avoid any future premium payments. If your life insurance contract is a permanent policy, and is beyond the surrender period, any cash value accumulated in the policy will be sent to you after termination.

Things You'll Need

  • Original life insurance contract
  • Policy number
  • Contact the life insurance agent who sold you the policy. If that agent is no longer available, contact the insurance company's Customer Service Department instead.

  • Request the life insurance surrender/termination documents.

  • Complete the forms and return to the insurance company via postal mail or fax.

  • Destroy or return your original life insurance contract, depending on the insurance company's procedures.

Tips & Warnings

  • If obtaining the cash value is your primary intention, you may be able to access this money as a loan without actually surrendering your policy.
  • Once a life insurance policy is surrendered, you are no longer covered by the policy. This will leave you uninsured, unless other policies are still in force.
  • In some instances, depending on your state's income tax laws, money received from the surrender of a life insurance policy may be taxable.

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