What Happens When I Cancel Life Insurance? 
When you cancel your Life Insurance policy , you are not only giving up the coverage you purchased but you may also be giving up your insurability and cost of insurance . When you applied for the coverage you are considering cancelling , you went through underwriting to determine if you are `` insurable '' . While you are insured , if your health was to deteriorate , the insurance company still maintains the coverage you have . If after cancelling your policy , your health starts to suffer , then when you try to reapply for another Life Insurance policy , you may not be insurable and at best you will have to pay more in premium . Plus consider you will be older which also increases your premium . I recommend that you talk to your broker/agent first to discuss your situation and see the alternatives you have . 