If I don't pay the first payment for life insurance, does it automatically cancel the policy?

I got a call from an insurance company (American Amicable) and got applied to an insurance plan. It sounded shady from the start but they called me suddenly at a very bad time, which I tried to tell them but they said it would be quick (it wasn’t). I just wanted to get it over with (big mistake, I know). I asked twice if I could have some time to decide and cancel and they said yes. They set the first payment date for next Monday. The thing is, when I got home and tried to look up the company, it really doesn’t seem good. I tried calling to cancel but I can’t get a hold of anyone.

My question is, if I close my bank account (which I was planning to do anyway) and prevent them from taking money from me, does it automatically cancel the policy? Will there be negative consequences if I do so?

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If you haven’t paid, you don’t have insurance. It would be considered not taken and won’t affect you negatively.

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Ok, good to know. Thank you very much.

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So if you died today, $0 in coverage.

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American Amicable is a legitimate company. The agent may have acted shady, but the company itself is not. You will receive the policy paperwork in the mail. You have a 30-day free look period during which you can cancel the policy and get your money back. If you decide you need the policy, just keep it. If you want to cancel, visit their website to find their phone number. Call that number to cancel.

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Thank you, that makes me feel better. She didn’t mention the 30-day period. She rushed me and insisted we complete the application even after I told her it wasn’t a good time. That made me question the legitimacy. I called their number all afternoon, but I’ll try again tomorrow.

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Closing your bank account seems extreme. Instead, just call the bank and request a stop payment for the company. You can also call the company and let them know you’ve changed your mind and don’t want to be charged.

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Yes, I’ll give that a try if can’t cancel it by phone. I’m planning to close my bank account this month anyway since I’ll be moving soon and just thought I would just close it sooner if I couldn’t contact them. Thank you.

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American Amicable is a reputable life insurance company that has been in business since the 1910s.

It seems the agent may have rushed you a bit.

Is the policy too expensive, or does it not provide the right coverage?

Don’t forget, you have a 30-day look period to decide.

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The agent rushed me during the call. I wanted to discuss the details later when I had more time, but she called while I was at a gas station and had to be somewhere. She assured me it wouldn’t take long, but the call ended up lasting almost an hour. I had to stop three times to provide her with information like my bank details. I mentioned several times that it wasn’t a good time, but she insisted on pushing through with the application, saying I could cancel it later if I needed to.

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If you don’t sign when the policy is delivered there is no charge. You don’t have to pay if you don’t want it and there is no negative consequences

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She had me sign over the phone. I got a one time code through text which I read to her to confirm it was me. If I can’t cancel by phone I’ll contact my bank to prevent payment as one commenter suggested. Thank you.

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You definitely want to make sure you’re taking your time and doing what’s in your best interest. The agent was in the wrong if they pushed coverage on you that you weren’t confident in.

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Yes, that’s pretty much how I felt earlier. Thanks