You may never have a reason to cancel Term Life Insurance. If you are paying a reasonable rate but no longer need the coverage, you might consider changing your beneficiary to a charity or grandchild. You can even convert your Term insurance to Permanent so that the policy never ends.
If you got your policy at a young age and in good health, you will never get rates like that again, so think twice before you cancel it. You may even find that a relative is willing to help pay your premiums for you to keep or convert it, so that they do not have to worry about how to pay for your final expenses when you pass.
There are two times to cancel your term life insurance. The first is at the end of the term and your premium increases ten fold. Then it is time to cancel and perhaps purchase another new plan. The second reason is when your loved ones no longer need you for financial support. This means no more debt and a nest egg large enough to enjoy the same living standard the loved ones enjoy now without your income.
That is a great question! There are a couple of good reasons why you may wish to cancel your term policy. The best would be that you've paid off early the debt you took the policy out to cover against. It would make no sense to continue paying, at that point. The second would be that it was due to auto-renew, and your premium is about to skyrocket. (which it does) cancelling the policy before it becomes unaffordable is wise also. The last would be if you reached a point where you had a whole life policy, or had made other arrangements to provide for your final expenses and your surviving loved ones financially. Again, at that point it makes little sense to pay for a policy. I hope that helps, thank you for asking!
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If you got your policy at a young age and in good health, you will never get rates like that again, so think twice before you cancel it. You may even find that a relative is willing to help pay your premiums for you to keep or convert it, so that they do not have to worry about how to pay for your final expenses when you pass.