Canceling Colonial Penn Life Insurance: A Step-By-Step Guide

If you're looking to cancel your Colonial Penn life insurance policy, there are a few things you should know. Firstly, it's important to understand the different types of life insurance policies offered by Colonial Penn, as the cancellation process may vary depending on whether you have a term life insurance policy or a permanent life insurance policy. Additionally, the timing of your cancellation can impact any refunds or payouts you may receive. For example, if you cancel during the free look period, which typically lasts 10 to 30 days, you may be eligible for a full refund of any premiums paid. On the other hand, cancelling a permanent life insurance policy can be more complex due to the accumulation of cash value, which may be subject to surrender charges and outstanding loan deductions.

Cancelling within the free look period

If you've just purchased your life insurance policy, you're likely within the "free look" period. This period typically lasts 10 to 30 days, depending on your state, and allows you to cancel your policy without any financial penalty. You will also receive a full refund of any premiums you've paid. The free look period is a critical time to review the details of your policy to ensure it will meet your current and future needs.

Colonial Penn offers a 30-day money-back guarantee. If you decide that the coverage isn't for you, you can return your insurance documents within 30 days of receiving them for a complete refund, with no questions asked.

To cancel within the free look period, contact your insurance company by phone or in writing to inform them of your decision. After this period ends, cancelling the policy might involve more steps, particularly with permanent policies, where you might need to consider the impact on the cash value and any surrender charges.

Cancelling a term life insurance policy

• Stop Premium Payments: Contact your insurance company to end automatic payments if you have them set up. You can do this by calling the insurance company or making changes to your account online.
• Confirm Cancellation: It is recommended to call your insurance agent or carrier directly to confirm the cancellation and ensure there are no further obligations on your part.
• Finalize Cancellation: Most insurance companies have forms or online options to finalize the cancellation process, making it quick and convenient. Completing this step ensures that the policy is properly cancelled and avoids potential lapses in communication.
• Keep a Record: Maintain a written record of the cancellation and confirmation that your term life policy has been cancelled. This can help resolve any potential issues or misunderstandings in the future.

Before cancelling your term life insurance policy, it is worth exploring other options, especially if you still require some level of coverage. You may be able to convert your term policy to a permanent policy without undergoing a new medical exam, or you could consider reducing the policy's face amount to lower your premium payments.

Cancelling a permanent life insurance policy

If you have recently purchased a permanent life insurance policy, you are likely within the "free look" period, which typically lasts 10 to 30 days and allows you to cancel without financial penalty and receive a full refund of any premiums paid. After this period, cancelling a permanent life insurance policy will likely involve more steps and considerations.

When you surrender a permanent life insurance policy, you may receive a payout from the cash value that has accumulated. However, this amount may be reduced by surrender charges, especially if the policy is relatively new. Surrender fees tend to decrease over time, but it's important to understand that the cash value may not be as high as expected if you surrender the policy prematurely. Additionally, if you have any outstanding policy loans, the surrender value will be reduced by the balance of unpaid loans plus accrued interest.

Before cancelling a permanent life insurance policy, it's crucial to understand the potential financial implications and consider alternative options. One option is to use the accumulated cash value to cover premium payments or mortality costs, depending on the policy type. However, this approach may reduce the death benefit for your beneficiaries. Another option is to sell your life insurance policy through a life settlement, which can provide a lump sum of cash, often more than the policy's cash value.

To cancel a permanent life insurance policy, contact your insurance company to discuss the specific steps and implications. Each policy has slightly different rules and guidelines, so it's important to understand the details of your specific policy.

Updating your payment method

To update your payment method for Colonial Penn life insurance, you can make changes to your payment plan online or by calling customer service.

Online

To update your payment method online, go to the MyColonialPenn.com website and log in to your personalized account. From there, you can make changes to your payment plan, including updating your payment method.

By Phone

If you prefer to update your payment method over the phone, you can call Colonial Penn's customer service hotline, which is available toll-free. The customer service team will be able to guide you through the process of updating your payment information.

By Mail

You can also update your payment method by mailing a completed "Payment Method Change" form to the following address:

Colonial Life & Accident Insurance Company

P.O. Box 1365

Columbia, SC 29202-1365

This form can be used to update your payment method if your premiums are no longer being deducted from your paycheck.

It's important to keep your payment information up to date to ensure that your life insurance coverage remains active and that there are no lapses in communication or unexpected cancellations due to missed payments.

Changing your beneficiary

To change the beneficiary on your Colonial Penn life insurance policy, you will need to fill out a Change of Beneficiary form. You can request this form by logging into your personalized account on the Colonial Penn website or by calling customer support. Once you have the form, simply fill it out and submit it to update your beneficiary.

It is important to keep your beneficiary information up to date to ensure that your life insurance benefits are distributed according to your wishes. With Colonial Penn, you can change or update your beneficiaries at any time, and the process is designed to be easy and straightforward.

To log in to your Colonial Penn account, you will need your policy number, the date of birth of the person insured under the policy, and a valid email address. Once you have logged in, you can manage various aspects of your policy, including updating payment methods, scheduling payments, filing and checking the status of claims, and updating beneficiaries.

If you prefer to speak to a customer support representative, you can call Colonial Life at 800-325-4368, Monday through Friday, from 8 a.m. to 8 p.m. ET. They can assist you with requesting the Change of Beneficiary form and answer any questions you may have about the process. Additionally, you can fax claims information to 800-880-9325 or mail correspondence to the following address: Colonial Life & Accident Insurance Company, P.O. Box 1365, Columbia, SC 29202-1365.

Frequently asked questions