Life insurance is easy to forget, but just when you forget it (possibly because you purchased it decades ago and you are not using it), it may be a good time to reevaluate your needs. Is your old policy still serving a purpose?
Life insurance is important as we start our adult lives. We get married, we buy homes, we have children. And we want to provide for our families should an unforeseen event (such as an accident or illness) prevent us from caring for them financially.
But then life goes on. Our children grow up. We pay off our mortgages. We retire. We live comfortably on the income provided by Social Security and our retirement savings. But we are still paying premiums on life insurance policies we purchased years ago.
It may be tempting to simply stop paying premiums and let the policy lapse. You can probably think of dozens of reasons why. You could use the proceeds to pay down debt, add to your nest egg, buy long-term care insurance, create a rainy-day fund, or simply go on vacation more often.
While we do not know your individual circumstances, generally we would not advise letting a life insurance policy lapse without considerable thought. The policy may still be of some benefit. Even if you have no mortgage and no children living at home, you may still need life insurance. Think of all the ways the people in your life could be affected by your death and ask yourself how your life insurance proceeds would help them. If you can come up with enough ways, it might be worth keeping your policy in effect and reevaluating in another five years.
We can help you determine if you should reevaluate your life insurance policy. Please reach out to us today if you need help.