At What Age Should You Stop Term Life Insurance?

Life insurance is an essential part of any financial plan. However, there comes a time when the costs required to keep it outweigh the assistance provided to your beneficiaries. Deciding when to stop your life insurance is a highly personal decision, and it can be tricky to navigate. Here are a few scenarios that could signal you no longer need your life insurance policy:

Age	Scenario
65+	If you have paid off your mortgage or helped with your children’s student loans or if your children are out of the house with families of their own.
Any age	If the costs required to keep it outweigh the assistance provided to your beneficiaries.

That being said, it is often worth having life insurance after 65 if you have dependents who rely on you financially. Your life insurance policy can help provide:

• Income replacement
• Final expenses
• Estate taxes

If you are older than 65, you can surrender your policy, let it lapse, or sell it through a life settlement (if you qualify). Here are the differences between these methods:

Surrender	Lapse	Life settlement
You terminate your policy and receive any cash value that has built up.	Your policy ends because you stop paying the premiums, and you receive no benefit.	You sell your policy to a third party for a lump sum cash payout.

Typically, the benefits of getting rid of your life insurance policy kick in once you qualify for a life settlement. This happens when you’re at least 65 years old at the earliest. If you qualify for a life settlement, this may be the right financial decision to make the most of your golden years. Whether you want to ease financial pressures or have new experiences, selling your life insurance policy reduces monthly payments while putting cash in your pocket.

If you’re unsure about when to stop your term life insurance policy, it’s always best to contact your insurance provider and financial advisor for support. They can help you make the best decision based on your individual financial situation.