How to Surrender Life Insurance
Life insurance is designed to protect your family from your financial debts when you die. Any remaining liabilities are paid off by the death benefit. However, if you get to a point in your life where you decide that you don't want your policy any longer, then one option you have is to surrender the policy. Make sure that you are certain that this is the best move for you and your family because once it's done, it cannot be undone.
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Instructions
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Gather your policy information. The insurance company needs your policy number. If you have a cash value life insurance policy, you'll also want to know what the available cash value is in the policy and whether there is a gain in the policy. A gain is any amount in excess of the premiums paid. All gains are taxable to you as income. If you have a term policy, there will not be a gain in your policy since there is no cash value.
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Contact the insurer to get the required forms for terminating your policy. You will need to fill out policy cancellation forms to verify that you want to cancel your life insurance policy.
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Fill out the forms. Fill out your name, address, telephone number, Social Security number and policy number. Also make sure you sign your name to the form and date your signature. If you are receiving cash value from your policy and you want the amount deposited into your bank account, then specify your bank account information.
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Turn in the forms to the insurance company. Your forms should be processed within a few days. If you are expecting a check or deposit for the cash surrender value and have not received it within four weeks, then contact the insurer to verify that all forms were processed properly.
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