Cancelling your
Term Life Insurance?
  • Understanding Term Life Insurance
  • Steps to Consider
  • Do it easily
how to cancel term insurance
Buy Policy in just 2 mins

Buy Policy in just 2 mins

Happy Customers

2 lakh + Happy Customers

Free Comparison

Free Comparison

Customized Term Insurance Plan for you.

Get upto 10% Online Discount*



How to cancel a Term Life Insurance Policy Online: A Step-by-Step Guide

It is a fast-paced world today, everything is digitalized now, even many insurance tasks can be completed conveniently online, and canceling a term life insurance policy is no exception. We all understand that life circumstances and financial needs can change with time. While the process of canceling a term life insurance seems daunting, you can make it hassle-free with the right information and guidance. This article will walk you through the steps to cancel a term life insurance policy online.

Life Insurance Banner

Life Insurance Banner

Read below for the answers to How to cancel term insurance Online.

  • Understand the PolicyBefore you process the cancellation of your term life insurance policy, it is necessary to understand what exactly your term insurance is like and why you are considering cancelation. Also, do check your surrender value, which is the amount that you will be receiving upon cancellation, minus any penalties that are going to be charged.
  • Gather all the required informationYou need to collect all the necessary policy information, such as policy number, name of the policyholder, date of birth, and contact details. Along with these documents, you must also have a valid government-issued identification as you may need to provide it for the verification process.
  • Explore the online portalMost of the insurance providers offer the option to cancel the term life insurance policy through their website or online portals. You can explore the website yourself or call an expert for assistance.
  • Initiate the Policy CancellationWhen you access the portal using your policy information, you might need to provide your identity details. Give the reason for canceling your policy and submit the request.
  • Document SubmissionAfter you initiate the cancelation, you need to submit the necessary documents to support your request. The most common documents that will be required are identity proofs, policy documents, and filled-out cancellation forms. Make sure that all the documents are clear and legible to avoid delays in the process.
  • ConfirmationYou will receive the confirmation mail from your insurance provider after submitting all the documents successfully. This confirmation mail will confirm the effective date of cancellation.
  • Financial ImplicationAfter the submission of your documents, and the approval of cancellation, your refund will be initiated by the respective policyholders. Although the amount can vary. You need to understand any potential tax consequences associated with the refund.

Inform the Beneficiary

It is necessary to inform your beneficiary about your decision to cancel your term life insurance policy. Your decision will impact their financial status as well, especially if they are relying on you. Moreover, it is the ethical responsibility of the policyholder to inform their beneficiaries about this important decision.


Canceling a term life insurance policy online is not actually a complicated process. You just need to understand your policy and its terms and conditions. By exploring and seeking guidance from the expert you can easily do the process.

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

How To Cancel Your Term Life Insurance: FAQs

1. Can I cancel my term life insurance policy at any time?

Yes, most term life insurance policies can be canceled at any time. But, it is essential to understand the potential financial consequences before proceeding.

2. Will I receive a refund if I cancel my policy?

You will receive a refund depending on your policy and its terms, you will receive a refund of the premium paid minus any applicable fees or penalties.

3. What happens if I discontinue term insurance?

If you do not pay the premium amount on time, then the plan will lapse and will not provide any benefits.

4. Is it a good idea to cancel term life insurance?

Cancelling life insurance is not a good idea, as it is hard to get a new one. However, it might be worth it if the coverage is no longer required.

5. Does term insurance have a surrender value?

Term life insurance is less expensive. But it only lasts for a limited period of time. Term policies does not build cash value, so there is no cash surrender value either.

What Our Customers Have to Say

Customer Review Image



May 20, 2024

SUD Life term plan truly stands out my expectations as I got SUD Life term plan along with additional riders at very affordable premiums.

Customer Review Image



May 20, 2024

I am impresses with the hassle free and quick claim settlement process of SUD Life. Thanks to PolicyX who guided me to get my claim settled.

Customer Review Image



May 20, 2024

Bought SUD Life Family Income Benefit Rider plan to secure the future of my plan financially even in my absence.

Customer Review Image



May 20, 2024

I was looking for a term plan to secure the future of my family. So I contacted PolicyX and one of their representatives Mr. Vaibhav helped me choose SUD Life term plan.

Customer Review Image

Armaan khan


May 17, 2024

I recently purchased a Pramerica term insurance policy from The customer service team was very helpful in answering all my queries and guiding me through the application process. I...

Customer Review Image

Rahul Yadav


May 17, 2024

PolicyX’s dedicated support made renewing my Bandhan Life Insurance policy easy. I’m absolutely delighted with the service offered by PolicyX Insurance Advisor.

Customer Review Image

Priyanshu Sharma


May 17, 2024

I bought a Bandhan Life Insurance through PolicyX, and I must say the level of communication and assistance I have received has been truly impressive.

Customer Review Image

Yash Tomar


May 17, 2024

After getting advice from the PolicyX experts, I chose a Bandhan Life Insurance term plan. Thank you, PolicyX, for helping me buy a term plan at such a low premium.

Simran Kaur Vij

Written By: Simran Kaur Vij

Simran is an insurance expert with more than 3 years of experience in the industry. She may have all the answers to your insurance queries. With a background in Banking, she proactively helps her readers to stay on par with all the latest Insurance industry developments.