Apr
26
2007
Well, that depends on a number of things. Do you have someone that depends on you financially? If yes, then now’s not a good time to cancel your life insurance policy. However, if you’re retired and no longer have a need for life insurance and won’t have estate taxes to pay, then you may no longer need life insurance. However, if you’re spouse is still living, you may want to keep the policy in place for her.
Before canceling a life insurance policy because you don’t think you have a need for it, ask yourself these questions:
- Would the death benefit help to replace income the family would need to maintain their standard of living after the death of a wage earner.
- Would the deatlh benefit help to pay off a mortgage loan and other personal and business debts or to create a rent fund.
- Would the death benefit help to create a fund for children’s education.
- Would the death benefit help to pay final expenses, such as funeral costs and taxes.
- Would the death benefit help to create a family emergency fund or a fund for a family member with special needs.
