||A life policy is a long-term commitment. If you cancel your policy, you will not receive the total amount of premiums that you have paid to-date. This is because the surrender value is usually less than what you have paid for. Ensure that you carefully discuss it with your existing insurance company should someone asks you to cancel your policy.
Cancelling your existing policy is not in your best interest because:
- Your premiums will be higher since you are older.
- Your cash value will build up slowly.
- The 2-year period of contestability will begin again.
- Your existing policy may have more favourable provisions than the new policy.