What Happens When I Cancel Life Insurance? 
Your coverage ends . When you 're cancelling a term life insurance policy , that 's the end of it . They do not have any cash value . A carrier may return a pro-rated portion of the last premium payment if you canceled it before it lapses , but that will vary by carrier . Most people will just not pay the premium and allow the policy to lapse on its own . If you 're terminating a permanent policy -LRB- universal or whole life -RRB- , there will generally be cash value in the policy to be collected - the cash value is subject to surrender charges if they have not been zeroed out yet -LRB- this depends upon the structure of the policy and how long it 's been in force -RRB- . 