Broker Check

10151 Deerwood Park Blvd.,  Bldg. 200, Ste. 250  Jacksonville, FL 32256    |    (888) 891-3381    |    Get Office Directions

Is It Ever A Good Idea To Drop Life Insurance?

(Previously published Sept., ’16 Ponte Vedra Recorder, Ponte Vedra, FL)

If you’re looking to cut costs, reducing or dropping your life insurance may seem like a safe option. In some cases, it may even be a good idea. However, think very carefully before making changes to your policy. Once you’ve dropped your coverage, you will probably pay a higher premium due to being older.

There are some key points in life where reviewing your coverage makes sense:

You’ve paid off your mortgage. For most Americans, a mortgage is the single biggest debt they owe and a big reason for getting life insurance in the first place. Once you’ve paid off your mortgage, it may be a good idea to review your coverage and see if changes should be made.

Your children have left home. One of the first things many expectant parents do is increase their life insurance coverage to protect their family from the financial aftermath of their death. Once the kids leave home and have a stable life on their own, you may want to review your coverage and determine whether you still need as much as you currently have.

You have fewer financial obligations. Whether you have cut back on your lifestyle or have paid off your debits, you may reach a place in your life where you have fewer expenses to pay. If your life insurance coverage is still based on old calculations, it’s a good idea to sit down with a professional and review your current needs & coverage. However, if your change in circumstances is due to a job loss or other unexpected event, think twice before making changes to your life insurance, you may be leaving your family without needed protection.

Dropping a life insurance policy isn’t a decision to be taken lightly, especially if you have a whole life or convertible term policy. Think very carefully about whether the short-term savings in premiums is worth leaving your family without coverage. If you think you want to reduce your life insurance or haven’t reviewed your policy in some time, get an opinion from a trusted professional who can explain in detail the pros and cons of such a decision.

Frederic “Ric” Schilling is a Florida native, born in Jacksonville, Fl. Ric is President of Senior Guardians of America, a local North Florida firm specializing in tax reduction, long term illness planning, asset protection, probate avoidance and life income planning. Ric is a National Speaker and Advocate on Senior Issues and has been featured by the Florida Times Union and WJXT, TV-4 in Jacksonville as an authority on Estate Planning and Retirement Issues. Senior Guardians has an A+ rating with the Better Business Bureau and is a member in excellent standing with the National Ethics Association. You may contact Frederic at: 904-371-3302 or 888-891-3381 Please visit:

This article is not intended to give tax or legal advice. Securities offered through Center Street Securities, Inc.(CSS), a registered Broker-Dealer and Member of FINRA & SIPC. Senior Guardians is independent of CSS.