Penalties of canceling life insurance?

February 8th, 2010 by admin

5 Responses to “Penalties of canceling life insurance?”

1. justin bieber Says:
   February 8th, 2010 at 5:51 am

   If you die, they won't pay out. Is that what you mean?Life insurance is NOT an investment or savings account, so you'd also lose your premiums that you paid in. But you lost them, when you PAID them.

2. lady gaga Says:
   February 8th, 2010 at 5:51 am

   You would lose coverage. If it is a term policy you just cancel and the policy will end. If it is a permanent policy you will receive the surrender value of the policy, which after 5 years will probably not be the total value of the policy, so you'd lose the difference between the total value and the surrender value. Source(s): Independent Agent

3. miley cyrus Says:
   February 8th, 2010 at 5:51 am

   You lose the insurance. If it is a term policy all you lose is the insurance. If you have a universal life insurance policy then you may have surrender charges and may lose the money you have on deposit.Check with the company to see what type of policy you have. Colonial life would be able to tell you if your losing anything other than the insurance.

4. taylor lautner Says:
   February 8th, 2010 at 5:51 am

   The insurance.

5. miley cyrus Says:
   February 8th, 2010 at 5:51 am

   "Life insurance is NOT an investment or savings account, so you'd also lose your premiums that you paid in. But you lost them, when you PAID them."Not necessarily true. If you cancel the policy, you give up the option of being insured. If you let it go, nothing says you'll be medically acceptable ANYTIME in the future. You never know when you'll have medical issues that will prevent you from getting an affordable rate, or even insurable at all. This is one of the big opportunity costs of canceling a life policy.

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