As you grow older your need for life insurance may disappear. You kids are out on their own and no longer need the financial safety net that life insurance provides. If you have a policy that you no longer need or you can’t afford it you have a couple of options. You can look into life settlements or simply let the policy lapse. Here is a quick overview of these options:
Lapse – Letting a policy lapse simply means that you stop paying the premium. The insurance lapses and the death benefit are forfeited which means there will be no payout when you die. Depending on the type of policy you have you might be due a refund on the cash value of the policy. Check with your insurance company or broker to see if you are owed any cash.
senior settlements – Depending on your age and policy type you can often sell your policy to a company or individual investor who will pay you a greatly reduced price and then collect the death benefit when you die. This can be a great way to get some cash in your old age.