Ride out Term Life insurance

[LivingAlmostLarge]

When and if you had term life insurance. Did you ride it out? Did you cancel it early? We have a really good and cheap deal. 25 year term insurance for DH and I. I will still keep it for a bit, but I was just thinking would we ride out the 25 years? Or would we cancel after say 20 years?

[disneysteve]

I think it all depends on your financial situation and the cost of the coverage. If the reason that you got insurance still exists, keep it. If the reason no longer exists, dump it unless it's super cheap and you want to hang onto it anyway as a bonus if one of you dies prematurely.

I cancelled DW's policy a couple of years ago. It was a small policy ($125,000 I think). We had reached a point in our lives where that amount was not going to be significant if she were to die. However I've kept my coverage. Even though if I die, she'd have a sufficient amount to live on, an extra $1.5 million certainly wouldn't hurt. I think my policy is good until I'm 70. I may or may not keep it the full term but right now, I'm keeping it.

Another thing to consider is secondary beneficiaries. In our case, my daughter would get the money. You could also choose to leave some or all of it to a charity of your choosing if you feel your spouse or family won't need the money.

[Like2Plan]

I phased it out a small policy DH had- reducing the coverage each year until I finally cancelled it.

I have 2 policies. One (a level term) expires at the end of this year-I considered cancelling, but just never could decide (with just a few months of coverage left I guess I'm going to ride that one out ). Another reduces coverage each month until it is 25% of the original coverage amount (for no additional premium).

[kork13]

Term life insurance is nothing more than a tool to protect your family. When your assets & situation are sufficient to protect your family through other means, the life insurance is unnecessary, and can/should be dropped (unless there is a real/legitimate expectation for your imminent demise).

[Bozzdivine]

Hey folks, Weighin' in on this, I reckon it's all about your financial picture at the moment. If you've got enough tucked away and your dependents would be fine without the policy payout, then it might make sense to drop it early. On the flip side, if the premiums ain't draining your pockets and the security it provides gives you peace of mind, riding it out ain't a bad idea. In the end, it's a personal decision based on your circumstances. Remember, insurance is there for the "what ifs". So, as long as there's a "what if" lurking, it's worth considering.