You took on a life insurance premium probably because you wanted to protect your family from financial hardship in the event that something happens to you. It is a wise decision, and one that can really help of something ever does happen. However, there are certain situations where you may decide to dispense with your life insurance. Here are the top reasons why you may decide to do this.
All of Your Kids Are Adults
When your children are younger, it is necessary to have life insurance to make sure that there is some money to take care of them if you are gone. But as they get older and become more self-providing, your life insurance may not be necessary anymore. The money you are spending on monthly premiums can be used for investments such as retirement. Consider if its really worth keeping life insurance and how much money would be available if you did to put towards other things.
You Aren’t Happy with Your Plan or Monthly Premium
Another reason why you might want to get rid of your current life insurance plan is you think you can get a better plan elsewhere. Say you reanalyze the value of your plan because the monthly premium is too high. This may spur you to search for a better plan to replace the one you have. Make sure you weigh what you are gaining for a lower premium. The coverage may not be as great as the plan you had before.
All Your Major Financial Expenses Are Paid Off
If you have already paid off all your vehicles and the mortgage on your house, then it may be time to consider if keeping life insurance is still really worth it. By this point, you are probably older, your kids have started their own families, and all you are concerned about is your spouse. As stated before, you could bank the money you have been putting towards a premium for retirement or invest elsewhere so that you have more capital to work with when you stop working.
You Are Healthy as A Horse
Usually, it’s a combination of things, but being healthy can tip the balance in getting rid of your premium. Naturally, health can change at a moments notice, but it is typically coupled with one or both of the above-mentioned reasons. With woman living 5% longer than men on average, you may determine that you would rather keep the premium rather then get rid of it.
Canceling May Not Be the Best Move
Everyone’s situation is going to be different. If you are healthy, and feel that the insurance premium is not really necessary anymore, then there is no problem canceling it. However, if you are still concerned about taking care of your spouse and family after you are gone, then it may seem worth the money you are putting towards it each month. The best thing you can do is just weigh the pros and cons and get a clear understanding of your situation. Then make a decision that you feel is best for you and your family.
