Variable annuity life insurance is like a double-edged sword. On the upside, its cash value component makes it slightly more attractive than a typical life insurance policy. However, if the policy's value plummets, you might find yourself in a bed of thorns rather than roses. You are entitled to cancel the contract, and making this happen is not difficult.
Find your policy number. Hopefully, you've kept your financial papers organized -- and in a safe place. Consult the first page of the policy for the number. You can also find the number on any statements you might be receive.
Request cancellation forms from your insurance company. Forms may be available for download on the company's website. Otherwise, request them by fax or mail. You might also be able to pick them up in person from the insurance office.
Complete and submit the forms. Proofread the forms to be sure the info is correct. You may be able to submit the forms by mail or fax or walk-in appointment.
Report gains when you file your taxes for that year. Keep your variable annuity life insurance statements handy at least until April 15. If you received cash value that exceeded the total premiums paid in, you will have to report that excess cash value as income at tax time.