Can I cancel my life insurance policy early?
April 18, 2023 | 30,00 EUR | answered by Ingo Gallenberg
Dear Sir or Madam,
my name is Carsten Born and I have a question regarding my life insurance. Several years ago, I took out a life insurance policy to plan for the future and secure my family. Unfortunately, I am now facing financial difficulties and am considering the possibility of cancelling my life insurance early in order to access the savings.
Currently, there are already several thousand euros saved in my life insurance policy, which would greatly help me in my current situation. However, I am unsure if cancelling the life insurance early is the right decision and if it is even possible. My concern is that I may suffer financial losses or setbacks by cancelling early.
Therefore, my question to you is: Can I cancel my life insurance policy early? Are there ways to do so without significant financial losses? What alternatives are there to access the savings without cancelling the life insurance policy?
I would greatly appreciate your assistance in this matter. Thank you in advance for your support.
Sincerely,
Carsten Born
Dear Mr. Born,
Thank you for your inquiry regarding your life insurance policy. It is understandable that you are considering cancelling your life insurance policy prematurely in a financially difficult situation in order to access the accumulated funds. I will explain in detail the options you have in this situation and the consequences of cancelling your life insurance policy prematurely.
In general, it is possible to cancel a life insurance policy prematurely. However, you should consider that there may be financial losses associated with an early cancellation. Typically, only the so-called surrender value will be paid out in case of early cancellation, which is usually lower than the actual accumulated amount. Additionally, there may be surrender fees or other costs that further reduce your payout.
Before cancelling your life insurance policy prematurely, you should carefully consider whether this is truly the best solution for your financial situation. There are alternatives to early cancellation to access the accumulated funds. For example, you could consider borrowing against your life insurance policy. This would allow you to take out a loan based on the surrender value of your policy without cancelling the insurance itself. This option may be cheaper than early cancellation in some cases.
Another alternative would be to sell your life insurance policy. There are companies that specialize in purchasing life insurance policies and offer you a specific amount for your policy. However, you should carefully consider whether selling is the best solution for you and whether the offered amount is fair.
In any case, I recommend seeking thorough advice before making a decision to cancel your life insurance policy prematurely. A specialist in insurance law can help you evaluate all options and find the best solution for your individual situation.
I hope this information has been helpful to you. If you have any further questions or require personal advice, I am at your disposal.
Best regards,
Ingo Gallenberg
