When should you stop life insurance?

Life insurance is a powerful financial safety net that protects your loved ones in the event of your passing. But it’s not always meant to last forever. There are specific life stages and financial milestones that may signal it’s time to reconsider whether continuing your coverage still makes sense.

When It Might Be Time to Cancel Your Policy

1. Your Loved Ones Are Financially Secure

If your children are grown and independent, and your spouse or partner has adequate income or retirement savings, the original purpose of life insurance—to replace your income—may no longer apply.

2. Major Debts Have Been Paid Off

Many people buy life insurance to cover big debts like a mortgage or car loans. If those are fully paid, your family may no longer need insurance money to cover them.

3. You Have Strong Retirement Savings

If you’ve built up a solid retirement portfolio or other assets that would cover final expenses, daily living costs, and medical bills, your policy may be redundant.

4. Premiums Have Become Too Expensive

Especially with term life policies that renew at higher rates, premiums can get expensive with age. If your premiums are eating into your budget and the coverage is no longer essential, it may be time to stop.

Reasons to Think Twice Before Canceling

1. You Might Need It Later

Once canceled, it can be difficult—or very expensive—to get coverage again later if your health changes.

2. Potential Tax or Surrender Fees

If you have a permanent life policy, canceling it could mean losing part of the cash value due to surrender fees. You might also owe taxes on any gains you withdraw.

3. Loss of a Backup Plan

Even if your loved ones are stable now, unexpected events like job loss, health issues, or market downturns can change financial circumstances quickly. Life insurance can serve as a fallback.

Smart Steps Before You Cancel

• Review your policy documents to check for cancellation fees or cash value.

• Talk to a financial advisor to ensure canceling won’t hurt your long-term security.

• Consider converting or reducing coverage instead of canceling completely.

Time for a Fresh Insurance Review?

As your life changes, so should your insurance. Regular policy reviews ensure your coverage still matches your needs.

Use the form below to get your instant life insurance quote in seconds—and explore coverage you can buy immediately, if it turns out you still need it.