What To Do With An Old Life Insurance Policy You No Longer Need

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When you were younger, a life insurance policy with a large death benefit made sense. You had a mortgage. Mouths to feed. Bills to pay. The loss of the primary breadwinner would have been devastating to your family’s financial security.

Today, things are different. The mortgage has been paid, the kids can support themselves, and your financial situation has never been brighter.

In these situations, clients often ask me what they should do with an old life insurance policy they no longer need. Often, it’s a whole life or universal life policy that has considerable cash value and requires a hefty monthly premium that seems to go on forever.

In my last post, I had cautionary guidance: “Are you absolutely, 100% sure you really, really don’t need your old life insurance policy any more?”

If you answered, “Yes!” to that question, then there are at least 7 things you could do to with that old cash value life insurance policy.

Wait! Don’t Cancel That Old Insurance Policy

Photo by Les Anderson on Unsplash

Years ago, when your kids were little and your mortgage was big, you probably bought some life insurance. If you had a friend or family member who worked for an insurance company, odds are good that it was a whole life policy. These policies often come with a hefty monthly premium that you are going to pay for… well, your whole life.

Today, however, life is different. Your kids have kids of their own and the mortgage has been paid. Your need for life insurance has gone away, but those hefty monthly insurance premiums; they are here to stay.

A question I am often asked is, “Should I cancel my old life insurance policy?”