How to Terminate a Corporate Life Insurance Policy
When a corporation buys life insurance, it's normally done as a fringe benefit for the employees. The corporation owns the policy and is responsible for making premium payments as well as all other decisions about the policy. The corporation provides a cash-value policy to give the employees a defined-benefit retirement plan or to provide insurance on key executives. However, corporate plans are also expensive. These plans are designed to stay in force for the life of the insured individual. But you, as a CEO or other managing corporate officer, may find these policies too expensive to maintain. If this happens, you may terminate your corporate policy.
Other People Are Reading
Instructions
-
-
1
Gather your life insurance policy information. You need your policy number. This can be obtained from your life insurance policy contract. If you have misplaced your policy contract, the policy number can be obtained from your most recent policy statement or directly from the life insurance company.
-
2
Get the termination form from the life insurance company. A policy termination form directs the insurance company to terminate the policy. Fill out the form. You must write in the policyholder's name and all personal information about the policyholder. Additionally, you must write down the policy number and sign the form. Only a corporate officer who has authority to make financial decisions for the company may sign the termination form.
-
-
3
Turn the form in to the insurer. Wait for the insurer to process your request. Then, the insurer will send you any cash-surrender value from the policy. The cash-surrender value is the cash reserve left after all policy and administrative fees have been subtracted. This includes any contract surrender charges listed in the policy.
-
1
