He stops paying his premiums and calls the insurance company to inform them that he has decided to cancel the policy. They send him a surrender form. He fills out the form and returns it. The insurance company charges him a 10 per cent redemption fee and reimburses him for the premiums he paid into the account, as well as the returns generated by his cash account. The amount returned is taxed at the usual rates of income. In the case of life insurance, a life indemnity in exchange for the life insurance policy may be a more lucrative option than returning the policy. Contractors should also keep in mind that if they decide to buy back a similar contract at a later date, the new contract may be more expensive and not all pensions and life insurance have rights of return. .