Life Insurance ...am i legally bound to keep a life insurance policy ?

[steve locher]

Lets say a person has a $50,000 dollar life insurance policy,..would there be any legal reason they could not cancel it ...i do not know what type as far as the policy goes , i do know this person is paying $30 bucks a month for it , if that helps.

[cahoonzie]

Generally, no one is "bound" to keep a life insurance policy in force unless there is some sort of allied contractual agreement. For instance, WABC has a contractual relationship with Rush Limbaugh whom makes millions for WABC. Therefore, WABC signs a $100 million contract with Rush for 5 years. WABC may take out a term life insurance policy on Rush for 5 years in the diminishing amount of $100 million. Just good business practice in case Rush gets blown away by some liberal lol.

Notwithstanding a contractual agreement, the owner (payor) of a life insurance policay may cancel a life insurance policy at will.