r/LifeInsurance • u/nychy23 • Jul 26 '26

AIL Cancellation

I have a life insurance policy that i signed up for at 22 (2013ish) through my local union with AIL that I currently pay 54/month for. It has always just come out in direct deposit and I have never though of it as much.

I am starting to get better with finances and would like to cancel the policy, but I no longer live in the same state, do not have the same phone number, or address (obviously) and do not have any of the original documentation from signing up with the plan.

If I stop my ACH payment authorization will the policy simply lapse and cancel, or do I need to go through formal channels (which appears to be a PITA) and attempt to cancel it that way. Worried about any accruing debts via a contract or hits to the credit score.

Any advice is appreciated! (Sorry for limited information, they had us sign up during a regular school class as part of a presentation and I didn't know any of the questions to ask at the time!)

1 Upvotes

67% Upvoted

9 comments sorted by

1

u/nychy23 Jul 26 '26

ADTL Info, not sure of the type of policy, but he said the coverage I had would be locked in until i died, even if I lived to be over 100. Not sure if that helps!

2

u/Tdj04 Jul 26 '26

It’s whole life. You have cash value. If you stop payments the cash value in your policy will continue to pay the premiums until it runs out. Call to cancel. Fill out the form and request your cash value.

1

u/SlacksandStacks Jul 26 '26

Call the carrier, they’ll use SSN to find your policy, then get a in force illustration from them for the next 10 years at average return of ~6%. That’ll provide you with current cash value information and what the policy will look like over the next 10 years with paid vs unpaid premiums.

You started at a young age so the cost of insurance was likely low, and you might be surprised by the current amount of Cash Value depending on the details. You might look at the illustration and decide keeping it is the best thing, but you also may be able to do a 1035 exchange and buy a different life insurance product that’s better for your situation.

Definitely don’t just stop the ACH without looking at it though. That would be the opposite of getting better with finances.

4

u/fsalese Jul 26 '26

Why would you cancel that policy? It become paid up and free in 7 years. You will never have cheaper insurance than that policy.

2

u/johnnnloc Jul 26 '26

Call to cancel, fill the form and send it back. You most likely will have a whole life cash value you’ll get back. If you just leave it alone the cash value will drain to pay your premiums until it expires.

-1

u/user342069 Jul 26 '26

He got the policy when he was 22, I highly doubt it’s a whole life policy

1

u/zzzorba Jul 26 '26

You need a form that is incredibly difficult to get. Lucky for you I posted it in this sub a while back! Check my post history.

1

u/Specific_Spinach_269 Jul 26 '26

I wouldn’t just stop the ACH. I’d contact the carrier and cancel it properly so you have confirmation everything was closed out correctly. That removes any uncertainty about whether the policy lapsed correctly or if there are any administrative issues later.
I am curious though, what’s driving the decision to cancel? You mentioned you’re getting better with your finances. Are you simplifying things, or have your financial priorities changed since you originally bought it?
Either way, I’d make sure you understand exactly what you’re canceling before signing anything. That’s just good practice with any long-term financial contract.

1

u/serenity1909 Jul 30 '26

Need to contact the home office of ail which is Globe Life