When you think about protecting your family and their future, what comes to mind? At the top of your list should be life insurance. But after you’ve made the leap and purchased a policy, what happens if there are issues with it, or what if it doesn’t end up meeting your needs as you go through changes in your life? Is it ever the right move to cancel a life insurance policy? And what are your options when doing so?
You No Longer Have Dependents
If your children are all grown up and have their own lives, your current life insurance policy might no longer be as necessary as it was when they were growing up. In addition, if you have lost your spouse, this will also change your life insurance needs. If you no longer have as many dependents as you once did, your life insurance policy might be too much for your needs now.
When you find that you have fewer dependents, you should evaluate your financial needs as well as any financial burdens that your family could face after your passing, including any end-of-life expenses, medical bills, and other debts that need to be paid off. If your policy covers way more than those things and you’re finding the premiums to be too expensive, canceling it might be appropriate; if you choose to do so, though, you should look into other policies that would fit your current needs. After all, you still want to protect your family and make sure that they are able to pay off your funeral expenses and any other debts, without having to reach into their own pockets.
Losing your job is not always a great reason to cancel your life insurance policy – after all, you’ll still need financial security for your family – but if you can no longer afford your premiums and you don’t have any riders that protect you from loss of income, you might need to consider canceling. It is important to note, though, that you might be facing some hidden cancellation fees and tax penalties if you do choose to cancel your life insurance policy.
As we pointed out above, canceling your policy might seem like a wise budgeting decision right now if you’ve lost your job, but your family could end up with financial issues in the future if you no longer have life insurance. So, if you’re worried that your current policy could become too expensive, consider asking your insurance company if you can add a rider that will help you pay for your premiums if you lose your job, such as a waiver of premium rider. You can also consider converting your policy or choosing a different life insurance policy that will fit your current needs more, and then increase your death benefit later when you have more cash on hand.
Changing or Converting Plans
As we have already mentioned, you do have the option of changing or converting your current life insurance policy. Instead of being tempted to cancel your policy, whether it’s because you want to take advantage of another insurance company’s lower rate, you feel like you can’t afford it anymore, or it doesn’t fit your needs, you can switch policies. Switching policies – instead of canceling outright – can be a great way to save money or even get more coverage for the same monthly premiums.
There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.