Life Insurance
Hi Terry,
At what age do you recommend we stop paying for Life Insurance? I am 65 and my wife is 55.
Our net worth is 5 Million. Thank you.
Terry Says
Well, the silly simple answer is “when you think you have left enough to your beneficiaries”!
But there’s more too it. Do you own your life insurance through an irrevocable trust — outside your estate? If you live in Illinois and die with more than $4 million in assets, you might need that money to pay estate taxes.
And there could be a capital gains tax due if you let your policy lapse. So be sure to ask the insurance company if that is a consideration in letting the policy go. Note: I said the insurance COMPANY — not a salesperson!!
