When you cancel your life insurance, what happens will depend on what type of policy you have.
If you have Term Life insurance, the policy will simply end. You will not get any money back unless you had ROP Term (Return of Premium Term) and had kept the policy long enough that you are eligible to receive back part of the premiums you paid in.
If you have a Permanent Life insurance policy that accumulated cash value, you will be able to receive the surrender value in cash.
If you want to quit paying on your Permanent policy but don't necessarily want to cancel your insurance, you could roll the surrender value over into another life insurance policy. Or you may have the option to change your policy to a reduced paid up policy, which means that it will be a smaller policy but you will not have to make any more payments to it.
If you cancel a permanent policy in the first years, there will be a surrender charge that will reduce the cash value, and if you have loans against the policy, those will also be deducted from what you receive from the cash value, along with interest on the loans. You can request a current illustration to see what your Whole Life or Universal Life has for cash value, surrender charges and loan charges.
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If you have Term Life insurance, the policy will simply end. You will not get any money back unless you had ROP Term (Return of Premium Term) and had kept the policy long enough that you are eligible to receive back part of the premiums you paid in.
If you have a Permanent Life insurance policy that accumulated cash value, you will be able to receive the surrender value in cash.
If you want to quit paying on your Permanent policy but don't necessarily want to cancel your insurance, you could roll the surrender value over into another life insurance policy. Or you may have the option to change your policy to a reduced paid up policy, which means that it will be a smaller policy but you will not have to make any more payments to it.
If you cancel a permanent policy in the first years, there will be a surrender charge that will reduce the cash value, and if you have loans against the policy, those will also be deducted from what you receive from the cash value, along with interest on the loans. You can request a current illustration to see what your Whole Life or Universal Life has for cash value, surrender charges and loan charges.