Quora Answer: When Should I Sell My Life Insurance?

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

By selling your life insurance, I take it you mean either assigning the ownership of the policy absolutely to someone else for a fee, or surrendering it for the policy value less costs and outstanding fees.  In either case, it should be an act of last resort.  The purpose of buying a policy is to mitigate against some form of loss, particularly if you are the main income earner.  If you surrender it or assign it absolutely, you lose that.  In the event that you have problems with your premium, depending on the type of policy, you have options.  You can consider making the policy paid up, freezing coverage temporarily, or even dropping one or more of the riders.