Monday, October 13, 2008

I Cancelled My Life Insurance

Yes, I did it. I cancelled 'most' of my term life insurance. Thanks to everyone who added their opinion in my previous post. Originally, I was planning to cancel the smaller policy when I got the larger policy a few years ago but I kept both for no real reason. The total payment was $47 a month which seems like a lot of money right now. And when I was trying to cut my expenses for my future $600 early semi-retirement budget that life insurance stood out as an unnecessary expense.

A week ago I sent a letter to cancel the larger policy. I have already received a check to reimburse me for this month. That was quick. I am keeping the smaller policy because some commenters mentioned that they got married and had children later in life and then found that they couldn't qualify for life insurance because of existing medical conditions. The small policy costs $11/month and expires when I am 59 years old. Hopefully I'll have enough assets by then to be self insured.

Now...what to do with an extra $36 a month? Well, if my mobile home rehab project can be completed for $10k or less, then the $36 will go towards that project. And if that project doesn't work out it will definitely go towards the mortgage.

2 comments:

Sharon Rose said...

Hi there-well done, this option is obviously the best way forward for you!

Daizy said...

I hope so. Only one way to find out!