To cancel a Genworth life insurance policy, call customer service at 888-325-5433, request the correct cancellation or surrender form for your policy type, sign it, and return it by mail or fax to Genworth’s service center in Lynchburg, Virginia. Genworth will not process cancellations by email.1Genworth. Contacts If your policy has cash value, surrendering it will likely trigger surrender charges and federal income tax on any gain, so it’s worth getting those numbers before you sign anything.
Call Genworth First and Ask Three Questions
Dial 888-325-5433 and ask the representative:
- What is my current cash surrender value?
- Are there any outstanding policy loans against the contract?
- Will surrender charges apply, and how much?
Those three numbers tell you what you’ll actually receive. Also confirm whether your beneficiary designation is revocable or irrevocable. An irrevocable beneficiary has to give written consent before you can surrender the policy or touch its cash value.
While you have the rep on the phone, ask what policy type you hold (term, whole, universal, variable, or indexed universal) and whether the contract has ever been classified as a modified endowment contract. Both answers affect what you fill out next and what you owe later.
One rule to know going in: Genworth does not accept cancellations, address changes, or financial transactions through email.1Genworth. Contacts Any emails you’ve already sent about ending the policy have no legal effect.
Pick the Right Cancellation Form
Genworth lists four separate forms on its life insurance forms page, and using the wrong one is a common reason requests get sent back.2Genworth. Life Insurance Forms Match the form to your policy:
- Term life policies use the Cancellation Authorization for Term Life Insurance. Because term policies carry no cash value, this simply ends coverage with no payout.
- Whole life and universal life policies use the Surrender Authorization. This ends the contract and releases the cash value after loans and surrender charges are deducted.
- Variable life policies use the Variable Life Surrender form, which exists separately because the sub-account investments have to be liquidated.
- Indexed universal life policies use the Index Universal Life withdrawal, loan, or surrender request. One form covers partial withdrawals, loans, and full surrenders for indexed contracts.
If you’re not sure which type of policy you have, confirm it with the rep during that first call rather than guessing from the form name.
What You’ll Need to Fill Out and Attach
Every form asks for the policy number, the full legal name of the owner, current contact information, and the owner’s signature. If you can’t find the policy number, Genworth can look it up by the owner’s Social Security number.
Policies owned by a trust require a Certification of Trustee Powers showing that the person signing has authority to surrender the contract.2Genworth. Life Insurance Forms Corporate-owned policies need equivalent documentation of signing authority. The legal owner is the trust or company, not the insured individual, and Genworth has to see proof of who can act for that owner.
Lost the original policy document? You’ll likely need to complete a lost policy affidavit, a standard industry form in which you swear the original can’t be located. Most insurers require it to be notarized, so plan a stop at your bank or a notary.
The surrender form also asks about federal and state tax withholding. Genworth typically defaults to withholding 10 percent of the taxable amount for federal taxes unless you choose a different rate or opt out. Opting out doesn’t eliminate the tax; it just moves the bill to when you file your return.
Where to Send the Form
Mail the completed form to:
- Regular mail: Genworth, P.O. Box 40016, Lynchburg, VA 24506
- Overnight (FedEx/UPS): Genworth, 3100 Albert Lankford Drive, Lynchburg, VA 245013Genworth. Customer Service and Support
- Fax: 888-325-32991Genworth. Contacts
Keep a signed copy of whatever you send and note the date. If you fax, save the transmission confirmation page. That paper trail matters if there’s any later dispute about when coverage ended.
How Surrender Charges and Loans Reduce Your Payout
If you’re surrendering a permanent policy within its first several years, expect a surrender charge deducted from the cash value. These fees typically start somewhere between 5 and 10 percent of cash value and decline each year until they reach zero. The exact schedule lives in your policy contract, and the Genworth rep can quote your current charge.
Outstanding policy loans come off the top as well. Genworth subtracts the loan balance plus accrued interest from the cash value before issuing a check. There’s a trap worth knowing about: if the loan balance exceeds your cost basis (total premiums paid), the forgiven loan can create taxable income you never saw as cash.
Taxes on the Cash You Receive
When you surrender a cash-value policy, the IRS taxes anything you receive above what you paid in premiums. Under Section 72 of the Internal Revenue Code, the taxable portion is the total payout minus your “investment in the contract,” which generally equals the premiums paid minus any amounts previously received tax-free.4Office of the Law Revision Counsel. 26 USC 72 – Annuities; Certain Proceeds of Endowment and Life Insurance Contracts Pay $50,000 in premiums and receive $65,000 on surrender, and you owe income tax on the $15,000 gain.
Genworth will send a Form 1099-R by the end of January following the year of surrender. Box 1 shows the gross distribution, Box 2a shows the taxable amount, and Box 5 shows your premium contributions that may be excludable from income.5Internal Revenue Service. Instructions for Forms 1099-R and 5498 A late-year surrender means the 1099-R and tax bill arrive a full year later.
Modified Endowment Contracts Are Taxed Worse
If the policy was ever classified as a modified endowment contract because it was funded too aggressively relative to its death benefit under the IRS seven-pay test, the tax picture gets uglier.6Office of the Law Revision Counsel. 26 USC 7702A – Modified Endowment Contract Defined MEC distributions are taxed last-in, first-out: every dollar is treated as gain until all gains are exhausted. If you’re under 59½, the IRS adds a 10 percent penalty on the taxable amount, similar to an early retirement withdrawal.
Ask Genworth directly whether your contract is a MEC. If it is and you’re under 59½, the combined tax and penalty can be heavy enough that waiting or using a 1035 exchange is worth a hard look.
Three Alternatives That May Beat a Straight Cancellation
Reduced Paid-Up Insurance
If you want to stop paying premiums but don’t need the cash now, ask Genworth about converting to a reduced paid-up policy. Your existing cash value buys a smaller permanent death benefit that stays in force for life with no further premiums. You keep some coverage, skip the surrender charges, and avoid triggering a taxable event. The death benefit drops significantly in exchange.
1035 Exchange Into a New Policy or Annuity
If the policy no longer fits but you still want coverage or an annuity, a 1035 exchange moves the cash value directly into a new contract without tax on the gain. Federal law permits tax-free exchanges from life insurance into another life insurance policy, an annuity, or a qualified long-term care insurance contract.7Office of the Law Revision Counsel. 26 USC 1035 – Certain Exchanges of Insurance Policies The money has to transfer insurer to insurer. If the check passes through your hands first, the IRS treats it as a taxable surrender. Since Genworth is no longer writing new life policies, the receiving company will be a different insurer.
Life Settlement
Policy owners who are 65 or older, or who have a serious health condition, may be able to sell the policy to a third-party buyer for more than the surrender value. A life settlement buyer pays a lump sum and takes over as owner and beneficiary. The payout often exceeds what the insurer would pay on surrender, sometimes substantially. It only makes sense for policies with a meaningful death benefit, and not every policy qualifies.
After You Send the Form
Genworth generally processes a life insurance cancellation within one to two weeks. You’ll receive a confirmation letter at the address on file showing the policy is no longer in force. If there’s cash value coming back, the check is typically mailed separately within a similar window.
Watch your bank statements through the next billing cycle to confirm automatic premium drafts have stopped. Even though Genworth’s system should halt them, revoke the ACH authorization with your bank directly as a backup. Cleaning up both sides avoids chasing a refund for a premium pulled after the policy ended.
One last thing: if you just bought the policy and are still inside the free-look period (typically 10 to 30 days after delivery, depending on your state), you can cancel for a full premium refund with no surrender charges and no tax consequences. The window is short but it’s the cleanest exit available.