Canceling your life insurance policy is a big decision that can have some serious consequences. If you are thinking about canceling your life insurance policy I would strongly suggest you consider these 4 things before you decide to cancel. Before you cancel your life insurance policy, you should speak to your beneficiaries, get a medical examination, consider whether or not you will need coverage again, and consider the cash surrender value. Make sure you have carefully considered each factor before deciding whether or not to cancel your policy because you do not want to make a decision that you regret later on.

Speak to Your Beneficiaries 

Before you go and cancel your life insurance policy it is important to have a conversation with all of your beneficiaries. You should speak to each one before you finally decide to pull the plug on your life insurance policy. You want to do this to make sure that each of the beneficiaries understands that you intend on ending your insurance policy and you want to make sure that they are in a financially stable position. If one of your beneficiaries expresses doubt or hesitation towards you canceling your policy, you may want to reconsider or see if there is anything else you can do to help them.

Get a Medical Examination 

If you are thinking about canceling your life insurance policy one thing that you must do is get a medical examination. This is one of the most important things you can do because once you cancel your policy, you will have to start the application process all over again which can result in you paying higher premiums if your health has deteriorated. Having a full medical examination done before you cancel your policy will allow you to review your health and determine if canceling your policy is truly in your best interest. If you have a medical examination done and the report indicates that you will require medical assistance in the future, you may want to keep that insurance policy around a bit longer.

Will you need Life Insurance when you’re Older?

Another important thing to consider is whether or not you will need life insurance in your future. If you think that you will require life insurance again at some point in your life, it may be worth just keeping the plan now while you are younger. Keeping the plan will allow you to pay lower premiums if you have whole life insurance because before applying at a later age will most definitely result in a higher monthly premium.  If you are unsure whether you should keep your life insurance or if you do not know if you will need life insurance coverage again at some point in the future, you should talk to a life insurance broker for more info on why keeping your life insurance may benefit you. Remember that you had your reasons why you took one in the first place.

Cash Surrender Value 

If you are thinking about canceling your life insurance premiums you should think about how much you are giving up by canceling your plan. If you have term life insurance you should be expecting to receive your premium payments paid back to you in a tax free, lump-sum amount.  If your plan is about to reach its term, you may want to consider paying the remainder of the premiums so that you can receive the largest amount back when your policy’s term is up. If you cancel your coverage you will be surrendering much of the cash value of the premium return.


If you are thinking of canceling your life insurance policy make sure you consider the 4 things before you make your final decision. Canceling your policy may benefit you but it may also come with some unintended consequences. Please make sure to consider speaking to your beneficiaries to make sure that they are not relying on you for financial support.

Also, make sure you get a comprehensive medical examination before you decide to cancel your policy because you do not want to cancel your policy if you have an underlying medical condition you are not aware of. If you think that you will need to get life insurance again at some point in your life, you may want to consider keeping your policy as it will result in you paying lower premiums. If you are really set on canceling your life insurance policy make sure you understand how the cash surrender value of your insurance policy works.

If you are nearing the term of your life insurance you make want to consider keeping your policy in order to receive the largest premium return. If you consider these 4 factors you should have a comprehensive understanding of the consequences of canceling your life insurance policy.