Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
It ultimately depends on your personal situation, but there will always be a need to have life insurance coverage (such as income replacement for your spouse, burial expenses, fees for the handling of your estate, leaving a legacy to your loved ones, etc. - using life insurance to provide income for your spouse after you die is a major need for coverage that is often overlooked).
You may simply need to change the amount of total coverage you have in force as your needs change, but you will most likely need to have some level of coverage in force forever.
The most common type of life insurance that gets dropped is term insurance. The reason usually being that the term period on the policy is expiring/has expired and the premiums start increasing. When this happens, people usually buy a new policy to replace the old term policy to save money on their premiums.
If you're unsure about what to do for your specific circumstances, speak with an experienced broker who can help you determine the best course of action for your specific needs.
I hope the information is helpful - please feel free to contact me for further assistance and if you have any other questions. Thanks very much.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Many life insurance policies expire. If you have a policy that you must “drop” then the proper time to do that is when you no longer love anyone. Or when you no longer owe anyone money. Or when you no longer want to make a difference in this world. You certainly do not want to drop a policy if your health is declining, or when there are still loose ends in your estate.
That is a great question! The answer really depends upon why you would want to. There are policies that end on their own, and to renew them becomes really expensive really quickly, and if that is the case for you, let your term policy expire, and don't renew it. If your case is that you've found a cheaper whole life policy, drop the old policy as soon as the new policy becomes effective. If it's a matter of affordability, maybe a better solution is to call and have your coverage reduced ( lowering your premium payment) and allowing you to keep the policy. If you are needing money, maybe taking out a loan on the policy is wiser. If I can help you further, please feel free to contact me, okay? Thanks for asking!
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You may simply need to change the amount of total coverage you have in force as your needs change, but you will most likely need to have some level of coverage in force forever.
The most common type of life insurance that gets dropped is term insurance. The reason usually being that the term period on the policy is expiring/has expired and the premiums start increasing. When this happens, people usually buy a new policy to replace the old term policy to save money on their premiums.
If you're unsure about what to do for your specific circumstances, speak with an experienced broker who can help you determine the best course of action for your specific needs.
I hope the information is helpful - please feel free to contact me for further assistance and if you have any other questions. Thanks very much.