How to Cancel Your Americo Life Insurance Policy

Purchasing life insurance is an important way to protect your loved ones financially in case something happens to you. However, there may come a time when you need to cancel your existing Americo life insurance policy. Here is a comprehensive guide on how to cancel your Americo life insurance policy.

When You Might Want To Cancel Your Americo Life Insurance

There are a few common reasons why you may want to cancel your Americo life insurance policy:

• You no longer need the coverage: If you initially purchased life insurance to protect young dependents who are now grown and financially independent, you may no longer need coverage. Or if you have enough assets to sufficiently provide for your family, life insurance may be unnecessary.

• You can’t afford the premiums: If your financial situation has changed and you can no longer comfortably afford the monthly or annual premiums, cancelling the policy might make sense.

• You found a better policy: You may want to switch life insurance providers if you find a company offering better rates or coverage options that are a better fit.

• The policy no longer fits your needs: If you initially purchased the wrong type of life insurance, like term instead of permanent, you may want to cancel it and find a policy that aligns with your current needs and goals.

• You have a terminal illness: If you become terminally ill, you may be able to cash out your policy early to help cover medical and end-of-life expenses.

Carefully consider your situation before cancelling. While life insurance rates increase as you age, you don’t want to regret cancelling too early if your circumstances change again.

How To Cancel Your Americo Life Insurance Policy

The process for cancelling your Americo life insurance policy depends on the type of insurance you have. Here are the steps for both term and permanent policies:

Cancelling Americo Term Life Insurance

Term life insurance from Americo provides coverage for a specific time period, such as 10 or 20 years. Here’s how to cancel a term policy:

• Stop paying premiums: Term life policies will lapse or be cancelled if you stop making premium payments. However, it’s best to provide written notice as well.

• Contact customer service: Call 800-231-0801 or email customer service at [email protected]. Inform them you want to cancel your term policy.

• Complete any required forms: Americo may require you to complete a policy surrender form. If so, the representative can provide instructions.

• Send written notification: Mail a signed letter with your name, policy number, and intent to cancel to:

  Americo Life Insurance

  PO Box 410288

  Kansas City, MO 64141

Keep copies of any letters or forms you send. Cancellation will take effect after Americo processes your request.

Cancelling Americo Permanent Life Insurance

Permanent life insurance includes whole life, universal life, and variable life policies. Follow these steps to cancel permanent coverage with Americo:

• Review your policy: Check your policy documents or call customer service to confirm cancellation terms. There may be surrender charges if you cancel early.

• Request any cash value: Permanent policies accrue cash value. Ask about receiving any accumulated amount if you cancel.

• Contact customer service: Call 800-231-0801 to inform Americo you want to cancel your permanent policy and arrange to claim any cash value.

• Complete required forms: Americo will likely require a policy surrender form. Complete and return any paperwork per instructions.

• Send written notification: Additionally, send a signed letter indicating your intent to cancel and claim cash value to:

  Americo Life Insurance

  PO Box 410288

  Kansas City, MO 64141

It can take 4-6 weeks to process cancellations on permanent policies. Americo will confirm once your policy is terminated.

What Happens When You Cancel Your Americo Life Insurance

Here’s what you can expect after cancelling your Americo term or permanent life insurance policy:

• Coverage ends: All benefits and coverage will end on the cancellation date. Your beneficiaries will no longer receive a death benefit.

• No premiums due: You are no longer responsible for paying premiums going forward.

• Impact on taxes: Cancelling certain permanent policies early may have tax implications. Consult a tax advisor.

• Cash value payout: If cancelling a permanent policy, Americo will pay out any accumulated cash value less applicable surrender charges.

• No future insurability: Do not cancel thinking you can obtain coverage again later. It becomes much harder to qualify for life insurance as you age and develop health conditions.

• No policy reinstatement: In most cases, cancelled Americo policies cannot be reinstated. You would need to apply and medically qualify for a new policy.

Be certain you understand the implications before moving forward with cancellation. An agent can explain how cancelling will impact your situation.

Alternatives To Cancelling Your Americo Life Insurance

As an alternative to cancelling your policy, consider these options to make your coverage more affordable or realign it with your needs:

• Reduce the death benefit: Decreasing your policy’s death benefit lowers your premium cost.

• Adjust your premiums: Make premium payments quarterly, semi-annually, or annually rather than monthly to reduce associated fees.

• Stop premium payments: Stop paying premiums on term policies to end coverage without formally cancelling.

• Take a policy loan: For permanent policies with accumulated cash value, policy loans allow you to borrow against this amount.

• Make coverage paid-up: You may be able to use cash value to make a permanent policy paid-up for a reduced death benefit amount.

• Surrender the policy: End your permanent policy and receive the cash surrender value. Then replace it with a lower-cost term policy.

Discuss your options with an Americo agent or representative before moving forward with cancellation.

Steps To Take After Cancelling Your Life Insurance

After you formally cancel your Americo life insurance policy, be sure to take these steps:

• Inform your beneficiaries that the policy has been cancelled so they are aware.

• Shred or safely dispose of any related paperwork and documents.

• Review your finances and insurance coverage. Determine if other policies or types of insurance should be purchased.

• If you cancelled due to affordability, look into lower-cost term life insurance options that fit your budget.

• Update your financial plan and estate plan documents if they were predicated on life insurance proceeds.

• Speak to a tax professional if cancelling permanent insurance about any tax liability.

• Going forward, set a calendar reminder to review your life insurance needs annually.

Getting Life Insurance After Cancelling Your Policy

If you determine you again need life insurance after cancellation, you will have to medically requalify by applying for a brand new policy. Here are some tips:

• Replacement policies often cost more due to being older and possibly having health conditions.

• Applying sooner rather than later makes getting approved easier.

• Expect to take a medical exam and answer extensive health questions.

• You may need to try several insurance companies to get approved after cancellation.

• Choosing term insurance is likely the most budget-friendly option.

• Work with an independent agent who can shop multiple insurers for you.

As long as you still require coverage, cancelling an existing policy should be a last resort option. An insurance professional can help troubleshoot more affordable alternatives.

Frequently Asked Questions

Below are answers to some common questions regarding cancelling an Americo life insurance policy:

Can I get a refund if I cancel my Americo life insurance policy?

With term policies, you cannot get a premium refund if you cancel. With permanent insurance, Americo will pay out any accumulated cash value minus applicable surrender charges when you cancel.

How long does it take Americo to cancel a policy after request?

It typically takes 4-6 weeks to officially cancel and terminate coverage after Americo receives your cancellation request and paperwork.

Is there a fee for cancelling an Americo life insurance policy?

Permanent policies may incur surrender charges if cancelled within the first 7-15 years. Term policies do not have cancellation fees but there are no refunds either.

Can I cancel my Americo life insurance policy online?

Americo does not offer an online cancellation process currently. You need to contact their customer service center and mail back any required paperwork.

What if I stop paying premiums on my Americo life insurance policy?

The policy will lapse and coverage will end if you stop paying premiums. But providing written cancellation notice is recommended to formally document terminating the policy.

The Takeaway

Life insurance remains an important way to protect your loved ones. Before cancelling your Americo policy, make sure you have thoroughly evaluated alternatives that allow you to keep needed coverage. However, if your situation has changed and cancellation is the right choice, follow the steps outlined here to request termination of your term or permanent life insurance policy. Reach out to Americo’s customer service team with any other questions you have throughout the process.