It’s sad but true; not all life insurance agents are doing business with your best interests in mind. Sometimes they’ll fib a bit and persuade you to get a policy that’s not exactly what you had bargained for, and sometimes they will leave out important parts of your insurance policy that you should know about!
If you feel like you’ve been duped by your last insurance agent, you still have the opportunity to get out of your current life insurance policy so that you can get a better, more reliable policy that you deserve.
Here’s how you can cancel, your life insurance policy in these easy steps:
Time Is Of The Essence
Before going any further, if you have recently bought an insurance policy, you typically have about 30 days to change your mind. While some carriers may not offer this period to reflect on your decision, many companies do, so if you change your mind immediately, you may be able to do a quick change without causing too much damage.
Do Your Research First
Before you make the steps to get out of your policy, look into all of the details of your policy, and research the company to see if there will be any consequences of cancelling your policy. Depending on the company, some may charge you for cancelling, or will not give you even a partial refund for the money you have invested. If this is the case then you may want to reconsider cancelling if you have invested a lot of money into your account. It is always best to know what you can do and to figure out what is the best option for you before you start the process.
Have Backup Insurance
So once you have made your decision to cancel your current policy, you need to think about what you are going to do next. If you plan on getting another policy with a different carrier, you may want to apply and start the underwriting process before you cancel the first policy. Or, at the very least, make sure you are covered by your employer-based insurance. For that short time in which you are in between insurance policies, you want to make sure you are protected in case something unexpected happens. Insurance is all about being prepared, and this is just another precaution you need to take.
Figure Out Your Finances
A major downside of cancelling your policy is that you may not get a full refund back. So some of the money you have invested will be gone forever. Also, with the money you do get back, you may be subject to taxes on the sum, which could take away more money. To figure out what to do with this money to invest it, and avoid losing more money, speak with an accountant or financial adviser to help you invest money for your future, so that your life’s savings and insurance money will be saved for your next life insurance policy.
Do What The Companies Says To, And Document Your Steps
With large insurance companies, you can likely find the steps to cancel online or by calling your agent. Then you can follow these steps to get out of your policy, but make sure you keep track of them and document them along the way. This will help you in case your shady insurance agent tries to trick you again, so you will have proof of what you are doing and why. By having everything documented, recorded or in writing, you’ll be able to show that you are being honest in case you need to take action to get your money back in your pocket.
While some insurance agents and polices may not be the best fit for you, there are still plenty of carries out there will trustworthy agents who can provide you with a better policy. Get out of your current insurance policy, and move on to a better fit policy in no time.