I need to cancel my term insurance policy, but I'm getting the runaround?
The company says i need to do it through my rep, my rep says I need to do it thru them, they say I need to send a written letter and my boyfriend (who also has same policy) who went thru all these channels recently got a bill from them closing his policy out for this month (in anticipation of a cancellation) but they’re charging him for the next 3 months worth!!!! (no mention of that in our life insurance policy!!!)
Is this even legal?????
I guess I should mention the rep from the HQ over the phone mentioned no cancellation fees and I can’t find any mention of cancellation on my policy
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April 1st, 2010 at 5:06 pm
OK, You need to put the cancellation request in writing, "Please cancel my policy as of June 1, 2007". Send a copy to the rep, the company, AND THE STATE INSURANCE DEPARTMENT. Let the rep and the company know you are sending it to the state insurance department – IN THE LETTER. Tell them you’re doing that, because neither the rep nor the company seem to want to cancel the policy for you, and you’re demanding cancellation.
If you think they are charging the boyfriend illegally, write to the insurance department. They should be EXPLAINING the charge to you. It’s more likely a final bill for the last three months, than a cancellation charge – those are pretty unusual in term insurance policies.
April 1st, 2010 at 5:06 pm
Yes, it can be. It is always important to read "cancellation policies" before you sign contract. Your actual insurance information package, by law, has to tell you the procedure for canceling your policy. Follow the procedure it stipulates completely, and keep records of every communication with the company.
April 1st, 2010 at 5:06 pm
I don’t know what your life policy says, but I think all life policies has a small paragraph regarding cancellation. It will say you will need to write a letter. When they receive the letter, thats the day they will cancel the policy. Whatever premiums you paid in advance will be refunded back to you. For example, if you paid your premiums annually, and you cancel in the 4th month, they will refund the remaining 8 months.
So write the letter stating you want to cancel the policy. You want to include the policy number, your name, address, and phone number.