[USER]

My wife and I got $400,000 term life insurance for 20 years. We have 4 years left. We reached FI at age 50.

Do we still need to pay remaining 4 years ($170 x 2 per year) of should we bail and keep the premiums money to ourselves?

Not big dollars in the big scheme of things. But I would hate to be wasting $1,360.

[Jared]

That insurance now would probably cost 5-10x that which means you’re getting a good deal on it. I’d still do it. 4 years from now let it lapse and don’t replace it.

[Ben]

Which would make you feel worse:
You both live 4 more years and you spent $1,360 on insurance you didn’t use.

Or

One of you pass away during that time and you end up getting $400K.

Id rather got with the second since its cheap for the protection.

Is a $340/yr expense a big impact to your budget?

[Nina]

Once we had enough to cover our needs, we canceled the most expensive of our term life policies.

We still have some because we are still pretty young and kids not fully flown, but will cancel all at some point.

[Shawn]

The last 4 years are the most expensive to insure, because you are older than you were 16 years ago.

While I think you are fine self insuring I also think you are getting a decent value by keeping it.

[AC]

Never drop insurance before finding out if you can sell it. For example to a viatical settlement company.

[Pam]

Are you retired also? Do you have children you want to pass money to? If you have heirs, I would keep it. That’s a really good rate.

Hopefully you “waste” it, but if you don’t, it’ll make a difference for the kids.

[Barbara]

Do you have children who are still dependent on you? If so, I would definitely keep it

And frankly I’d probably keep it anyway until the term is up.

[Bob]

So many variables …
In my case, I’m 7 years older than my wife. I have a substantial amount of money in my 401k. I can make withdrawals beginning next year (59.5) and I could retire.

However, if something were to happen to me, the clock would start over for her.

She wouldn’t be able to collect on it for an additional 7 years.

Since I’m the primary earner (working or retired), she would need the funds provided by life insurance.

I don’t know your exact situation but my guy would say to keep it … and make sure it’s enough.

[Jule]

I’d keep it for the remaining years. It’s a small amount of money but you never know.

[Author]

Posts