When can they cancel my life insurance policy?
Answers | 6
A “term” policy will expire at the end of the term selected and usually a renewal offer would be made to the policyholder. This is not a cancellation but just an expiration based on the term purchased.
States regulate the policies sold within their borders so a person should always check with their state insurance department but also remember to read the actual policy. The policy will contain definitions and explanations.
Also, once you purchase a policy it stays with you for the length of time you purchased it and you do not have to change it if you move to a different state. You must always provide the company with a current address and be sure the beneficiary clause is kept current.
Exceptions are a whole life policy that the policy owner has failed to make required premiums and the policy has depleted its cash value.
If the policy is a life policy where you would pay for x number of years then in this case once that point has been reached no further premiums remain due and coverage stays in force.
Another exception if you reach the age of 100 for most whole life insurance policies (which is known as the maturity date for a whole life insurance policy).
All the best,
This question could have a few different answers depending on what state you live in not to mention the various riders and different types of policies. Term policies will expire at the end of the selected term and you normally have an option to renew. Permanent policies can have various rules and regulations that must be met.