Are there circumstances under which someone who is still relatively young should cancel his/her life insurance? Sure, says Adriane Berg, founder of Generation Bold and author of Bottom Line’s Aging for Beginners blog. You should cancel your life insurance when the purpose for which you bought it in the first place has disappeared or been fulfilled. Insurance is the transfer of risk from you to the insurance company, so once that risk is gone, there no longer is a need for the insurance and it is financially wasteful to keep that policy. If you are interested in leaving a financial legacy for your heirs, you should keep the insurance because there is still a risk that this condition will not be fulfilled. Always be sure to go back and ask yourself, What was the purpose of purchasing this insurance? Has this purpose been fulfilled or is it still outstanding?
For more great tips from Adriane Berg, check out her Bottom Line blog “Aging for Beginners,” visit her website https://adrianeberg.me, or purchase her most recent book How Not to Go Broke at 102.