When you buy life insurance, you have a specific purpose in mind. Right from protecting the future of your loved ones, to making sure that you have taken the right decisions in your life based on your current and future earnings and expenditures, life insurance is an integral part of life that is supposed to be bought with a clear idea in mind.
However, as is invariably the case, life has a mind of its own, and you would often be caught up with surprises or would have to readjust your decisions to go with the changing times. That is when you may have to think of ways to come out of the Policy
that you had purchased earlier. Fortunately, there is nothing that would lock you in for life and you have all the means to come out of it, if you are willing to go through the process and give it the time that it takes.
There are those who think that it is the best option to let the policy expire on its own – after all, is it not the ideal option to stop paying insurance premiums
that the policy is dependent on? If you stop paying premiums, your policy should become void on its own!
However, there are better ideas than that. One reason why you should consider an active way of how to come out of a policy rather than letting it expire passively is that there could still be a component in your policy clause that allows for the premiums to be paid out of the balance value that your fund could have got accumulated. This means that even after you have stopped paying the premiums, your policy could still be using up the accrued value. In effect, you would be losing some of the value that you could still realise otherwise when you buy life insurance.
One straightforward way would be to talk to your agent, if your purchase has been through one. Your agent may then be able to suggest alternatives, and if you would still want to come out of a life insurance policy, you could still choose to do so upon your agent’s guidance.
In any other case, you would go well to go through the fine print of your policy – when you buy life insurance, your policy document would specify, through numerous terms, conditions, and clauses, on your roles and responsibilities as the Insured
party, and how you could terminate your life insurance
And if you had purchased insurance from the company or through a TPA, you could contact them through their dedicated helpline and ask for advice – your customer care executive would be the best person to provide professional guidance on how to go about surrendering your policy.
In any case, take your time without rushing about and be willing to go through the process – you would have only so much to gain and not much to lose that way.