Quora Answer: When Should I Cancel My Life Insurance?

The following is my answer to a Quora question: “When should I cancel my life insurance?”

As far as you are able, you should avoid cancelling your life insurance.  If you have financial difficulties, you have a variety of options depending on the type and nature of policy, the premium paid up and the secondary market.  If you cancel it, all the premiums already paid is lost, with no gain and no recourse.  It is a nuclear option with no real benefit.

You may consider a premium loan, or a freeze on premium and coverage for a specific period of time.  Another option is to reduce the coverage or drop one or more riders to reduce the premium.  You may have the option to convert the policy to paid up if enough of the premiums have already been paid.  The absolute last resort, is to sell the policy, if that is available.