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Should I cancel my life insurance?
That’s a great question!
Don’t you hate people who say that?
They use it to give themselves time to come up with the answer you want to hear, even though it could be the dumbest question they’ve ever heard. It’s a staple phrase of politicians and other bullshit artists.
Where was I? Ah yes…
It depends on the stage you’re at in your life.
Me, I shouldn’t cancel my life insurance, I’m in my early 40s (for full disclosure when I originally wrote this piece I was in my mid 30s, but the advice is still relevant) , have a Celtic Tiger mortgage, a two nine year old daughter and twins on the way in 19 days six year old twin boys. I’m also self-employed. My need for life insurance is massive, so I am properly tooled up with
I don’t have critical illness cover. I do now; the wife was impressed by Best Doctors, so we bought a cheap policy to get access.
My client Sarah shouldn’t cancel her life insurance. She’s a single mum who put €500,000 life cover in place seven years ago for the benefit of her daughter. The premium is only €21 per month because of her age. She was shocked; it was so cheap.
Note to anyone in their 20s reading this post, put loads of cover in place now when you’re young, you won’t regret it.Â
If Sarah cancelled now and changed her mind in a couple of months, her new premium would be €78 for the same cover.
You don’t want to leave any debts behind you when you leave us. Make sure insurance will clear those debts on your death. It’s the sound thing to do.
In conclusion, if anybody depends on your paycheque or if you owe money, you need life insurance. Don’t cancel.
That’s a different story. Ask yourself:
If you had passed away yesterday, are there sufficient funds for your spouse or your children to cope financially?
If the answer is yes, then you can probably cancel life insurance and save yourself the monthly premiums.
I’m sure you can think of more fun ways to spend your hard-earned!
But before you cancel life insurance, you should review it.
Maybe there’s better life insurance out there for you like:
Whole of life insurance with cashback
Whole of life insurance that pays for itself
Section 72 life insurance that pays inheritance tax
If you have reviewable whole of life insurance, you should STRONGLY consider switching to fixed price whole of life cover.
It’s straightforward, there’s no penalty for cancelling but you must put your cancellation request in writing.
Simply send a signed letter to your insurer instructing them to cancel your policy. But remember, once you send this letter, there is no turning back. Once you cancel it, you can’t reinstate it if you change your mind.
Think carefully.
Before you hit the “cancel life insurance” button, run it by me first.
There may be some options you haven’t considered.
You see, once you cancel, there’s no turning back so please be sure it’s the right thing to do.
If you’re about to cancel life insurance because you can no longer afford it, but you have financial dependents or a mortgage, then definitely contact me before doing something you’ll regret.
Complete this financial questionnaire and I’ll be able to advise you.
Chat soon
Nick.
As Ireland's leading life insurance broker, we specialise in comparing the rates and policies from the top five Irish life insurance providers and offering the very best value quotes to suit the individual needs of our clients. Our expertise lies in finding a suitable insurance plan for those with specific needs, be it a particular illness, occupation or claim history, we've got you covered in every sense!
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