How to Cancel Your Liberty Mutual Life Insurance Policy 
Learn everything you need to know to cancel your Liberty Mutual life insurance policy. The cancellation process is quick and painless, but it may not be your best option. Depending on your policy, you may be able to receive benefits, cash value, or even a refund. Learn all you need to know before you cancel your policy.
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UPDATED: Dec 29, 2021
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- There may be a better option than cancelling, depending on your policy
- Cancelling your Liberty Mutual life insurance policy is as easy as a phone call
- Altering or selling your policy may be a better option
In many circumstances, you may find you no longer need, or want, your Liberty Mutual life insurance policy. In those cases, it just doesn’t make sense to keep paying for a life insurance policy that you don’t need, or that you won’t use.
Life insurance is important, but not every policy is right for everyone, and not everyone needs life insurance. Whatever the case, if you need to cancel your Liberty Mutual life insurance policy, you’ve come to the right place.
To find out more about life insurance, enter your ZIP code above, and let us help you compare life insurance rates to find what you need.
Considerations Before You Cancel
Perhaps you have no more dependents living with you, so you don’t have anyone that needs to benefit from the policy. Maybe the premiums are too high, and you want some relief from the payments. It could be another company offered you a more affordable policy, or one with better benefits.
If any of these scenarios sound familiar, you may be thinking of cancelling your policy. If so, there are some things to consider first.
You may be able to negotiate a cheaper payment with Liberty Mutual. You may be entitled to early benefits or a refund. You may have more reasons than you originally thought to keep your policy active. There is a lot to consider, and we will cover it all here.
A lot depends on which type of insurance policy you have with Liberty Mutual. Term life insurance works differently than whole life insurance. Let’s look at the two to get a better idea of how they differ.
Term Life: Insurance for the Short Term
As the name implies, term life insurance covers a period of time, or term, that is pre-determined when you buy your policy. Whether you choose 10, 20, 30 years or more, the policy covers that specific amount of time. You pay monthly on a predetermined amount to cover those years.
The premium stays the same for the duration of the term, so you always know how much it will cost. Often, your payments will be cheaper than whole life insurance policies. Unfortunately, term life insurance policies do not qualify as investments, so you will not develop cash value from your payments.
However, life often changes rapidly, and you may find yourself in a position without the means or desire to continue making the payments.
In those circumstances, you may be able to get a refund for the unused portion of your policy. Ask your agent if you qualify for a refund before you cancel your Liberty Mutual policy or let it lapse. You don’t want to be left with nothing after all those years of making payments.
Term life insurance is generally cheaper and easier to understand, and has no age limit, so it is often the choice for younger families. If you have made the decision to move to a whole life insurance plan, then things will work differently.
Whole Life Insurance: A Long-term Investment
What is whole life insurance? Well, it differs from term life chiefly because, as the name suggests, it lasts your whole life. There is no specified time period after which the policy becomes void. As long as you continue to make payments, you will continue to be covered.
In addition, assuming the premiums are paid, your beneficiaries are guaranteed to receive the benefits when you pass. Of course, those payments will be higher than with term life, but the benefits will be greater.
Many people treat a whole life insurance policy like an investment in the future, as the policy develops cash value over time. This will sometimes allow you to effectively receive a portion of your benefits yourself, while you can still enjoy them.
If you feel you no longer need or want to maintain your whole life insurance policy, you do have options. Each policy will differ, so reach out to your agent to find out more. It may be that cashing out your policy is more beneficial to you than cancelling. Again, after making all those payments, you don’t want to be left with nothing.
Whatever you do, do not simply allow your policy to lapse due to non-payment. You will be out of luck, and out of cash. Of course, if you find a refund or a cash-out is not the right move for you, then cancelling may be your best option. Let’s walk through the steps to cancel your policy now.
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How to Cancel Your Liberty Mutual Policy
The first thing to know is you can cancel your policy at any time, and for any reason. There are no hoops to jump through in that area. If you have decided it is time to cancel, and considered all your other options, no one will stand in your way.
There are a number of ways to find the information you need to cancel your Liberty Mutual life insurance policy. If you visit their website, you will find that with Liberty Mutual, you cannot cancel your policy online. A short list of frequently asked questions will help guide you to the next step.
The next easiest method may be reaching out to your agent. You can do so via the website, or the Liberty Mutual app. If you choose to go directly to the source to get the cancellation train rolling, you can start at the Liberty Mutual homepage.
On that website you will find the customer service number. This is, in effect, your Liberty Mutual cancel policy phone number. Click “customer support” from the homepage and scroll down to find out how to get in touch with Liberty Mutual.
You can reach out to your agent, call the customer service number, connect on social media, or even text an agent. Simply reach out in whichever method is most convenient to you, and you will be on your way to cancellation.
Once you are in contact with a representative, make sure you are open about your situation. If your payments are too high, you may be able to get a lower premium. If you need benefits now, you may be able to cash out some of your policy early.
Get as much information from the agent as you can. Some states charge fees for cancelling life insurance policies, so find out if that applies to you.
Before you cancel, there is one more option to consider.
Life Insurance Settlement: Selling Your Life Insurance Policy
A final option to consider when determining what to do with your Liberty Mutual policy may be a settlement. What is a life insurance settlement?
Basically, this is the process of selling your life insurance policy to a third party.
A number of companies will offer a purchase price for your policy, then pay the rest of the premiums and collect the benefits after you pass. They will generally only seek out whole life insurance policies, so they know the benefits are guaranteed.
If you decide to sell your policy, you will no longer be responsible for the premiums, but you will never receive benefits from it.
These sales often involve fees and commissions, so you look at the fine print before you sell. In addition, the payment you receive for selling your policy is officially considered income, so it may impact your taxes.
These companies will often seek out customers over 65 years of age or those with terminal illnesses. It is in their interest to collect on your life insurance policy as soon as possible. These tactics may make some companies less than trustworthy, so research them thoroughly before making a decision.
The Bottom Line on Life Insurance Policy Cancellation
While it is a relatively painless process to cancel your life insurance policy with Liberty Mutual, it may not be an easy decision. Talking to your agent about all of your options should help you come to the right conclusion.
Whether you’ve cancelled and need a new policy or are just shopping for life insurance for the first time, enter your ZIP code below and get started today by comparing life insurance rates.