When To Cancel Term Life Insurance?
- 1165 POINTSview profileChris AbramsFounder, Abrams Insurance Solutions, Inc., San Diego, CATerm insurance can be canceled at any time, usually without penalty, and with a refund of any unused premium. Insurance is no longer needed when no financial hardship would occur if the insured passes. If the insurance was used to cover a mortgage and the house was paid off, then it may not be needed any more. Another reason to cancel term insurance would be if a better policy (maybe a permanent policy) was purchased. It is a good idea to discuss your individual situation with a professional insurance advisor who can help you with your insurance planning and strategy.Answered on August 15, 2013flag this answer
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63333 POINTSview profilePeggy MaceMost of the U.S.Think carefully before you cancel Term life insurance, because rarely can you purchase a new Term policy that costs the same or less than the one you already have. E.g If you drop a 30 year term policy at year 20 and get a new 10 year policy, you would probably pay more for the 10 year policy than if you continued paying on your 30 year term for the last 10 years. Only cancel your existing term insurance if you are sure you no longer need it.Answered on December 10, 2014flag this answer
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