If I cancel my life insurance policy after paying premiums, will I receive a pro rated refund?

Often, a person might decide to cancel their insurance policy after a number of months or even a year. Certainly, they've paid their premiums on a regular basis. Many would like to receive a prorated refund. Here is the deal. The insurance company is not required by law to refund any portion of the insureds premium, if the policy-holder decides to cancel. However, there is one saving grace for the insured party. Any policy that has cash value that has accumulated during that period is entitled to the cash surrender value of the policy. It is always a good idea to talk this over with an insurance representative to get all the details.

If you cancel your life insurance policy after paying premiums, you may be entitled to receive a pro-rated refund for the unused portion of the coverage period. The exact amount of the refund would depend on how long you have had the policy and how much you have paid in premiums. Many life insurance policies have a "free look" period, which is typically between 10 and 30 days after the policy is issued. During this period, you can cancel your policy and receive a full refund of any premiums paid. After the free look period has expired, you may still be able to cancel your policy and receive a pro-rated refund. However, the insurance provider may charge a fee for early termination of the policy. It's important to review the terms of your life insurance policy carefully and to contact your insurance provider to discuss the specifics of cancelling your policy and any potential refund.