When Can You Cancel Life Insurance? 
Life insurance policies that are owned by you and paid by you can be cancelled by you at anytime . The exception is mentioned above with a court order or contractual obligation . A term life insurance policy is as easy as a phone call and it will be cancelled . Most insurance carriers will require your request in writing . A cash value life insurance policy such as a whole life or universal life that has cash value may have some tax consequences to cancelling coverage . When you cancel a policy with cash value , the difference will be returned to you and you will be responsible for paying the taxes on the cash value growth at your current income level . if this is the case , be sure and have a statement to look at prior to making the cancellation . 