Things You Should Know Before Canceling Your Life Insurance Policy
Life insurance can be a tricky thing. Most people — 84 percent, in fact — believe lifetime coverage is important, yet only 59 percent of Americans actually own a life insurance plan. The reasons for not having life insurance vary. First of all, it’s sometimes difficult for the average person to know the type of coverage or how much life insurance they need for their entire life, let alone how much coverage they should buy. For others, the whole life insurance process and obtaining life insurance quotes is just a hassle. But for the majority of non-policyholders, monthly insurance premiums just don’t seem to fit into their final expenses budget.
Interestingly, these are some of the same concerns that lead life insurance policyholders to cancel the policies they’ve already purchased. A lack of understanding about the type of life insurance they actually own and the financial burden of monthly premiums are two of the leading reasons for policy cancellations. For other policyholders, their motivation is that they believe they simply don’t need the policy anymore, perhaps due to changes in their family or financial circumstance since they first purchased it.
If you’ve thought about canceling your life insurance policy for whatever reason, there are several incredibly important facts you should know before you cash in or stop paying premiums to your life insurance company .