I am a recently retired 72 year old widow with three life insurance policies totaling $700K and expiring in 2017, 2018 and 2023. Should I cancel any or all of these policies?
Premiums total $304 a month, and I have no dependents. I have paid so much into these that I am reluctant to cancel. Just my luck that I would cancel and then drop dead and my beneficiaries would get nothing!
It really depends on what you want the life insurance to do. How much you need and if you can afford the policies. It appears that these are term policies. So, as long as there is no cash value and assuming there is no need - you may want to consider canceling one, two or all three of them. Your health condition could also be considered. If the need is less or there is no one counting on your support then the need may not be there. If you are thinking you may want to leave something to beneficiaries and/or pay for final expenses - you may want to consider just keeping the policy that goes to 2023. Again, it depends on your assets, the need or what you'd like the policy to do - like leave money to beneficiaries, charities or causes. As long as there is no cash value - how much you paid to this point shouldn't really be part of the equation. Affordability, your assets, and need for the insurance should be the primary decision drivers. | 01.13.15 @ 11:35
It's not just about dependents. You didn't mention who your heirs are. You should consider your goals and whether any of the policies could be converted to permanent coverage in case you want to repurpose the policies for estate planning. | 01.26.15 @ 18:16
Hi Rosemary. I feel a bit differently about this. If you don't have people dependant upon you, who would be adversely impacted financially when you die, I would encourage you to cancel the policies and add the $304 a month to your fun budget. At 72 years old, you deserve to live it up a little! | 01.26.15 @ 20:56
take money out of them, and go on a trip around the world, keep 500,000 for your beneficiaries or if you have none, give to the Wounded Warriors, they have taken care of all of us and we do not acknowledge them at all. Believe it or not, the humane society gets more donations! | 05.22.15 @ 20:42