All life insurance companies are always obsessed with making the right decision and at the right time. And as a life insurance policyholder, you are not the only one who can cancel your life insurance policy. Your insurer too can terminate your life insurance plan due to the following reasons.
Most times, policyholders try to outsmart life insurance companies by lying about the severity of their health conditions. Some policy owners intentionally don’t disclose some specific health conditions to their insurer during the underwriting process. People commit such fraud with the aim of getting low life insurance quotes.
The consequences of such acts are in two-fold. If life insurance companies find out the truth, they could cancel the policy within the contestability period. Worse, they may refuse to pay the death benefits to the beneficiary if a policyholder is fraudulent.
If life insurance service providers find out that you’ve adopted an unhealthy lifestyles such as drinking excessive alcohol and smoking tobacco, they may cancel your life insurance coverage.
All life insurance companies have a deadline which policyholders must pay the agreed premiums. Once the grace period elapses and the policy owner defaults, life insurance service providers may decide to cancel the life insurance policy.
No one will cancel your life insurance policy so long you pay your premium on time, tell your insurer the truth about your health condition during the underwriting process, and stay healthy.