Should I Cancel My Life Insurance Policy?

[dthur2783]

I signed up for an insurance policy about three or 4 months ago with a premium of $205/month. However, recently, we have decided to retire early to another country, possibly at the end of the year or early next year. With this decision, I won't be able to afford my monthly premiums anymore as my income would be significantly diminished. My question is, should I cancel my life insurance policy at this point? What would be the repercussions? I want to be completely informed before I jumped on this decision. I hope people can help me.

Thanks.

 

[STIBROKER]

Depends on who you bought it from and why....if it is a non~med policy from a NAA agent yes......did you go through underwriting with a physical...

I signed up for an insurance policy about three or 4 months ago with a premium of $205/month.

 

[dthur2783]

Depends on who you bought it from and why....if it is a non~med policy from a NAA agent yes......did you go through underwriting with a physical...

Well, I went through a physical exam so it is a med policy. Also, I have only been paying it for a few months. Should I cancel the policy now at this time or wait for a year before canceling it? I assume that if I cancel it now, I wouldn't get any money back from it, am I right? Would I still need to pay an additional amount for the cash surrender value? I don't know how much my cash surrender value is. I looked at the policy but it was computed in years, and my policy hasn't even been a year yet.

 

[STIBROKER]

Should I cancel the policy now at this time or wait for a year before canceling it?

if you can't afford it now you will not be able to afford it in a year

I assume that if I cancel it now, I wouldn't get any money back from it, am I right?

Pretty much.....

Would I still need to pay an additional amount for the cash surrender value? I don't know how much my cash surrender value is. I looked at the policy but it was computed in years, and my policy hasn't even been a year yet.

usually it take 3 to 4 years to build any cash in a policy .....look ...if you need the insurance I would replace it with term...

 

[VolAgent]

You really need to sit down with someone, review what you have and determine what the need is. Then see if you can afford to solve the need. Right now you flying blind and are not going to be able to get advice specific to your need on this forum.

 

[theinsuranceman]

If you can not pay $205 when you retire, then you are not financially able to retire yet.

 

[WinoBlues]

Do you have an agent or did you buy this online or through a call center?

Also what country? May be an issue at claim time. Did you disclose any travel intent when you applied for the coverage?

 

[LGilmore]

IF you drop this policy, what else do you have? If nothing, then consider reducing the face amount of the policy to create a more affordable plan.

Deciding to drop your policy really won't hurt you in any way. Just the folks you leave behind, do they matter to you?

 

[dthur2783]

I can afford the monthly premium of $205 a month in my current job, but if I have to resign from my job in order to relocate to another country, then I won't be able to afford it anymore. Also, it would be cheaper if I get insurance from the country I would be living in and pay it in that country's currency as compared to having the policy that I have right now. Initially, when I had signed up for the life insurance, it was with the expectation of staying here for a really long time. But due to some unexpected circumstances, we decided to relocate, and so this was not preplanned prior to applying for the coverage.

 

[STIBROKER]

If nothing, then consider reducing the face amount of the policy to create a more affordable plan.

or....redoing it with a term plan.....