If you no longer need your policy, simply call your life insurance agent or company, and tell them you want to cancel your life insurance. But before you make that call, make sure you’ve explored other options – such as selling your life insurance for cash in a life settlement.
When you cancel or “lapse” your life insurance, you will stop paying premiums and lose the death benefit of the policy – that means that your beneficiaries will not receive the life insurance payout when you pass away. You should always figure out if there is a better option than canceling your life insurance policy because this results in you giving up years of paid premiums.
For many policy owners, a better option than canceling the life insurance policy is selling it through a “life settlement.” In a life settlement, the policyholder sells their policy to an institutional investor (usually a large bank or financial firm) and receives a large upfront cash payment. Afterwards, the investor – not the policy owner – is responsible for the annual premiums. Finally, when the insured passes away, the investor will collect the policy death benefit.
Don’t Cancel Your Life Insurance Policy!
A life settlement is a superior option, because it achieves the same goals of canceling the policy (i.e. you stop paying premiums) while also getting a significant cash payout. It allows you to turn the expense of your premiums into an asset or a cash value.
Ovid is the industry leader in life settlements and operates the first life settlement exchange. Policyholders can easily list their policy on Ovid a short application and get a cash payout in just a few weeks. Try us before you cancel your policy. We can give you an offer for free if you qualify. There’s no downside!