- 1). Gather your life insurance policy information. You must know your variable annuity life insurance policy number. This information can be obtained from any of your policy statements or from the policy contract.
- 2). Contact your life insurance policy issuer. The life insurance company that sold you the policy will have forms for you to fill out to cancel the contract. Get the forms from the insurer directly.
- 3). Fill out the forms to cancel your variable annuity life insurance policy and turn them into the insurance company. Make sure to include your policy number and all of your personal information.
- 4). Record any gain on your taxes. Any cash value that you receive that is in excess of the total premiums that you've paid into the policy is subject to ordinary income tax in the year that you canceled your policy.
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