How to cancel Term Life Policy

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Higman
Posts: 213
Joined: Wed Aug 20, 2008 7:51 pm

How to cancel Term Life Policy

Post by Higman » Mon Jan 16, 2017 4:46 pm

I have an “Adjustable Premium Level Term Insurance Policy to Age 95”. After 20 years of level premium the new premium jumps over 8 times higher this February 1 and goes up annually from there. I no longer need this policy. I called the customer service department and they said either have the owner (my wife) send a cancellation letter or just let the policy lapse by not paying the latest bill.

If my wife sends a letter should it be certified? Or if we let the policy lapse by not paying could it go to a collection agency? The only positive thing about letting the policy lapse is we get a 31 day grace period. So I do get another month’s coverage on their dime.

The company is Jackson National Life. I would appreciate any recommendations. Thanks.

Grt2bOutdoors
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Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: How to cancel Term Life Policy

Post by Grt2bOutdoors » Mon Jan 16, 2017 4:54 pm

Let the policy lapse by not paying the bill. No, it will not go to collections, you are not obliged to pay the bill therefore no collections. It is no different than not paying your auto insurance bill.
Last edited by Grt2bOutdoors on Tue Jan 17, 2017 8:58 am, edited 1 time in total.
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powermega
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Location: Colorado

Re: How to cancel Term Life Policy

Post by powermega » Mon Jan 16, 2017 9:07 pm

The best way to cancel a term policy is to simply not pay the premium when they send you the bill.
Even a stopped clock is right twice a day.

GuyInFL
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Joined: Thu Aug 04, 2016 7:17 pm

Re: How to cancel Term Life Policy

Post by GuyInFL » Tue Jan 17, 2017 11:46 pm

I just didn't pay the bill and had no issues. I received several notices, but they eventually stopped.

Cruise
Posts: 384
Joined: Mon Nov 21, 2016 7:17 pm

Re: How to cancel Term Life Policy

Post by Cruise » Wed Jan 18, 2017 1:33 am

powermega wrote:The best way to cancel a term policy is to simply not pay the premium when they send you the bill.


+1. One extra month of coverage.

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