When Should You Drop Life Insurance? 
This is a really good question . Everybody asks it . You do have some options . Lets see what the ramifications would be of choosing each one . You could drop it when you feel it has outlived its use . Lets suppose you originally bought a policy for family protection . But now , the kids are out of the house . You probably feel you dont need life insurance any more . But what about the next stage of your life ? And the stage after that ? What if you need to maximize your pension distribution ? What if a child - or for that matter a parent - becomes dependent on you later in life ? What if you want to leave a legacy of charitable bequests ? What if you want to start a business after you retire , and need to indemnify a bank loan ? Sure , you could always pick up coverage at that point . You think . Assuming you qualify medically and otherwise . And assuming you want to pay the extra cost due to a higher age . Then again , you could drop it when you feel you can afford to self-insure . So now you have a accumulated a sizable portfolio of assets . Your net worth is right up there . Why should you pay for life insurance when there is so much money at the disposal of your heirs ? But if you have demonstrated such savvy in reaching this pinnacle of success , you would certainly consider the following : What percentage of your asset portfolio is liquid ? Life insurance would pay your beneficiaries within days . If any bills have to get paid right off the bat , they will need liquidity . What about a estate equalization ? Some of your heirs may be in business with you and therefore inherit the firm . What about your children who are not working with you ? You probably want to take care of them as well . Life insurance could give them the same value as those children who inherit your business property . How about estate taxation ? Why would you want to pay Uncle Sam a ton of money dollar for dollar when you could have a life insurance policy take care of that obligation for pennies on the dollar ? The bottom line is that you could drop your life insurance any time you want . You just need to be prepared to face the consequences . 