Cancelling a life insurance policy is your right as the policy owner, and the process is generally straightforward. For new policies within the free look period (10 days in Tennessee), simply return the policy to the carrier or agent for a full premium refund. For existing policies beyond the free look period, submit a written cancellation request to the carrier, including your policy number, a statement requesting cancellation, and your signature.
Before cancelling, consider the implications carefully. For term life insurance, cancellation means the loss of coverage with no financial return — if you need coverage again later, you will need to reapply at your current age and health, which may result in higher premiums or different underwriting outcomes. For permanent life insurance, you may be entitled to the cash surrender value, which is the cash value minus any surrender charges, outstanding loans, and policy fees.
If you are cancelling due to affordability concerns, explore alternatives first. You may be able to reduce the death benefit to lower premiums, change to a different payment frequency, use dividends (if applicable) to offset premiums, convert to a reduced paid-up policy, or exercise other nonforfeiture options. These alternatives can preserve some coverage while reducing costs.
If you have permanent coverage with cash value, be aware that surrendering the policy may trigger a taxable event if the cash surrender value exceeds your cost basis (total premiums paid). Consult a tax professional before surrendering a policy with significant cash value. A licensed agent in our network can help you evaluate alternatives before cancelling.