I cancelled my life insurance three days ago.
I'm still not sure I did the right thing.
It was a term life policy that cost me $78 a month for $500,000 in coverage. I got it when I was first diagnosed with Type II Diabetes and had a sudden whiff of mortality. At the time, I had three children under 18 and living at home. It was a 10 year, equal premium policy that would have to be renewed (if possible, and at a much higher rate) in two years. I do not begrudge the money spent for the policy. It gave me peace of mind that I would leave something behind for the care of my children. But increasingly, it became harder to justify the expense.
In addition to getting rid of the monthly payment (well, quarterly, actually, but I save for it monthly), my thoughts were these: All my children, except my youngest, are on their own. My youngest daughter is almost 18. She may go to college but it is likely to be a community college. The older daughters are now almost 40, 33, 26 and 23. My net worth is over half a million (due largely to my two houses, not my currently-dwindling 401(k) funds). If I die tomorrow, each of my children will get in excess of $100,000 from my estate alone, never mind the life insurance.
So I held my breath and sent in the cancellation notice.
There's no going back on it now. But can I breathe yet?