Author Topic: Life Insurance - Time to Drop It?  (Read 2376 times)


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Life Insurance - Time to Drop It?
« on: October 09, 2014, 09:11:19 PM »
I have had a 20 year term life insurance policy for 5 years (since I was 45). My 3 kids are the beneficiaries of the $600,000 policy. They are 28, 21 and 13. The older 2 are independent, and my 13 year old would be in good hands with his dad (a physician). I have over $600,000 in assets that will be evenly divided between my 3 kids. The term life premiums are $548/yr and my renewal date is January. Should I keep it going? I have no health issues, and the premiums are only this low until age 60. My kids will each inherit over $200,000 each without the policy. I am afraid the next 15 years worth of premiums will just be money down the drain. Advice please!


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Re: Life Insurance - Time to Drop It?
« Reply #1 on: October 09, 2014, 11:41:43 PM »
The point of insurance is to lower the financial lost of an unexpected event.  In the case of life insurance, it is to supplement any lost income that the insured was making for his dependents.  You say that your 13 year old will be in good hands with is dad.  But what will the financial impact be if you pass away, do you currently generate income?  Is your family dependent on that income?  Even if you don't generate income, do you take care of the household?  Would their expenses go up due to you not being there?

You say you have over 600K in assets do you have plans for those assets? Are those funds only for you and not earmarked for anyone else?

If no one else is dependent on you for income and your passing will not significantly impact any of your dependents financially, then yes you should cancel it.  At that point it's just like playing the lottery where if you die your dependents will get 600K.


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Re: Life Insurance - Time to Drop It?
« Reply #2 on: October 11, 2014, 11:18:02 PM »
Maybe the wrong thread? 

But to answer your question: Yes x 100!  Kick the insurance company to the curb at every chance you get


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Re: Life Insurance - Time to Drop It?
« Reply #3 on: March 18, 2015, 07:59:44 AM »
No way, drop it.  I'm 38 and the only policy I have is through work.  I have a wife that stays at home, two kids.  I self insure my life, and my assets are probably bigger than the policy payouts that most people would buy. 

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Re: Life Insurance - Time to Drop It?
« Reply #4 on: March 18, 2015, 09:07:21 AM »
I'd drop it.