[Brian]

First and foremost, you should never count your employers life insurance as part of your plan as your employer could drop you at any time.

You should just consider that bonus

[Angela]

You both need enough life insurance coverage to replace your income for the surviving spouse so as to avoid a financial hardship for the ones left behind.

Plus burial expenses. Plus time off work to grieve and make arrangements.

Plus any additional money that you may want your loved ones to benefit from.

If none of those things are factors for you, then you no longer need life insurance

[Rick]

57 we just let two of our life insurance policies lapse. I have a term policy that expresses this year.

We just don’t need it anymore.

Daughter graduated college, we are debt free and have a reasonable net worth for a n Iowa life.

We just decided to stop spending money on that.

[Alicia]

Why not keep it for tax leveraged estate planning? It becomes a tool for legacy planning or for the policies benefits, not just about insuring your life.

Just because you have a wheelbarrow, doesn’t mean it can ONLY be used as a wheelbarrow.

[Jianle]

Feels like you already answer your own question. When you have a good amount invested in your retirement (assuming brokerage, Roth, and pretax) then you can eventually cancel life insurance (doesn’t sound like a bad plan to me)

[John]

It is a nuanced answer. A lot depends on what you have saved, ages, what do you get from work, what type of insurance do you have, how much it costs, how stable is your work, how healthy are you, etc.

There is no “right answer” without more information.

[Jule]

If something happens to you before you are able to withdraw from your retirement accounts without penalties, is there enough funds from other sources to support those children?

[Mickael]

What type of life insurance do you have? If you have a term policy let it expire and make sure it doesn’t renew.

If you have a permanent life insurance and a significant amount of cash value, you can always use it as a volatility buffer or long term care expenses.

[Jaricka]

Your answer could vary with whether you both have term or whole life insurance.

I would consider keeping it until: you and your partner have come to a decision about what age you expect your children to no longer be of your financial support, any remaining time you guys have left in your mortgage or any other large debt, and if one of you died tomorrow is there enough cash or taxable brokerage assets available to cover the costs needed for the surviving partner or dependents.

You could also factor in your retirement accounts if large enough and you would be comfortable with the risk of your death meaning that the retirement accounts would need to be accessed, but also factoring in if the survivors will have enough after taxes and penalty fees are charged.

[Nate]

The moment you reduce or cancel coverage you reduce your estate value by a greater amount since you (or your family) will be taking on the risk plus the opportunity cost of the estate value once a loss occurs.

Work with an advisor who understands whole life insurance and you can have an ever increasing death benefit and access to capital.

[Tom]

Good question . I ask the same. My wife and I both makes about the same, similar benefits.

Lot saved, enough I think to retire early at around 55-57.

Kids are young but by the time we retire I’m hopping the are near self sufficient, and if one of us passes the funds we saved for retirement will be more than enough.

I feel it’s just not needed at some point .

[Jairo]

The simple straight answer is yes you can.
But like others say you should evaluate the multiple scenarios, pros and cons

[Jonathan]

I cant tell you what to do with your life but once all my mortgages are paid and I’m debt free, I’ll put 20k in a money market to cover my funeral and that’s it for my life insurance.

[AC Mor]

First before you’re canceling your policy, check out the many companies that will purchase them from you.

Also, life insurance is incredibly cheap now.

[Scott]

I pay $14 a month for my life insurance. I recommend getting 10 to 20 years term life insurance in order to get you to your retirement date.

That way if you die your wife can at least retire.

After that there is no need since you will never have to work again.

[Author]

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