At what point do you stop needing life insurance. my term life just ran out. to renew it went from 350 a year to 5000 a year. i am 59 years old and my wife is 55 years old. house is paid off and so are my kids education bills. i have no debt whatsoever. my wife wants to keep a policy that pays us 50000 dollars if one of us dies for 500 a year. My wife does not want to cancel that policy because we have money in the policy that we would lose. Do i need either policy or could i do w/o any policy?

Terry Says:  You’ve told me about your life insurance and your major bills.  But how would your wife handle every day expenses if you were to die in the next few years?   Those are also expenses that life insurance is designed to cover.   You need to do some serious financial planning.  And since you do have some money in the $50,000 policy (on your life only, I’m assuming) you might see if it pays to do a tax-free exchange of that policy into something that could provide a bit more coverage (using the dollars you will no longer be spending on term).  Byron Udell, president of will review your existing policy to see if that makes financial sense as well as insurance sense.   That assumes you are still in good health and insurable.   I trust his opinion completely.

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