Problem canceling term life insurance

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
runnergirl
Posts: 131
Joined: Thu Nov 04, 2010 1:15 pm

Problem canceling term life insurance

Post by runnergirl »

I am trying to cancel an unnecessary term life policy with Northwestern Mutual Life. The agent says I cannot do it mid-year because I paid in full at the beginning of the year. He said I must wait until the renewal date and then ignore the bill letting the policy lapse. I would like to cancel now and get a refund for the remainder of the year. He said it is impossible. Does this sound right? I also adjusted my car and homeowner's insurance policies and in both those cases, I got a refund for amounts already paid.
bluemarlin08
Posts: 1561
Joined: Wed Aug 29, 2007 12:18 pm

Re: Problem canceling term life insurance

Post by bluemarlin08 »

Total BS from the agent. Send a certified letter to the company cancelling the policy and ask for a refund of unearned premium. PM me if that doesn't work.
BruDude
Posts: 3426
Joined: Thu Dec 30, 2010 12:28 am
Location: Las Vegas

Re: Problem canceling term life insurance

Post by BruDude »

Some companies don't refund prorated premiums when you pay annually. If you want the correct answer just call NWM yourself.
Bobbybell
Posts: 140
Joined: Wed Mar 27, 2013 12:54 pm

Re: Problem canceling term life insurance

Post by Bobbybell »

BruDude wrote:Some companies don't refund prorated premiums when you pay annually. If you want the correct answer just call NWM yourself.
What companies? I have never heard of that. Maybe it is a state thing? I thought that in most (all?) states unearned premiums had to be returned.
BruDude
Posts: 3426
Joined: Thu Dec 30, 2010 12:28 am
Location: Las Vegas

Re: Problem canceling term life insurance

Post by BruDude »

Bobbybell wrote:
BruDude wrote:Some companies don't refund prorated premiums when you pay annually. If you want the correct answer just call NWM yourself.
What companies? I have never heard of that. Maybe it is a state thing? I thought that in most (all?) states unearned premiums had to be returned.
Off the top of my head I'm not sure, but have run into it before. According to OP, NWM may be one of them...
Post Reply