Important Facts

Canceling or Replacing Your Life Insurance Policies

There are a few important things you should consider before canceling or replacing your life insurance policy. Temporarily saving money may not be in your best interest in the long run.

What You Need to Know Before Canceling or Replacing Your Life Insurance Policies

There can be many reasons why you may be considering canceling or replacing your life insurance policy. Before you do, here are a few things that you should consider:

  • If you decide to replace your life insurance policy, don't cancel the old one until you have received and accepted your new policy.

    Most people are unaware that you're allowed a “free look” provision, which is a period of time immediately following the issuance of a life insurance policy, during which you may cancel your policy with a full refund. The free look period differs depending on the terms of your life insurance contract or the laws in your state, but is typically between 10 and 30 days. So if during this time you change your mind about your new policy, you can cancel it knowing that your old policy is still in effect.

  • If you feel that your current policy no longer meets your needs, you may not have to replace it.

    Maybe you've been contemplating upgrading your term policy to a permanent life policy such as a whole life or universal life insurance policy. Or perhaps your permanent life policy death benefit isn't enough. Whatever the reason, you may decide at some time that you need a policy upgrade. The fact is, you may be able to change your policy or add to it to get the coverage and/or benefits that you now want. Ask your insurance professional about life insurance riders or options that may be available for you to increase your policy's limits to meet your needs.

  • Depending on your current age and health, consider the likelihood of paying higher premiums for the new policy.

    Because insurance premiums are rated in part on age and health, canceling your policy and applying for new coverage at a later date to, let's say, save money, means you could be paying even more for the same coverage in the future. Moreover, if your health has significantly changed, you may be uninsurable and unable to get coverage.

Deciding whether or not you no longer need coverage or trying to trim your budget by temporarily canceling your policy may not be in your best interest in the long run. The good news is that you may have other options available. In all cases, check with your insurance agent or life insurance company before making any significant changes concerning your existing life insurance policy.

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How to Cancel Life Insurance

How to cancel life insurance may be something you are wondering about. There may be times in your life when it might be tempting to cancel an existing policy. Before you do, there are a few things that you should consider like if you are thinking about applying for a different type of policy, or if your needs have changed and are concerned about the current policy not being enough, or realizing the impact of your current age/health all may impact a new policy. The good news is there are usually options and it is important to understand the full impact of making changes to an existing life insurance policy. For more information, visit the Protective learning center.


All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

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