Before you drop it, you need to really think about how it might be used and how it might fit into your plan!
If you are unsure and it will take time to figure it out, you can always keep the policy after you retire and let it lapse later if you determine you do not need it. It may cost you a few hundred bucks... but that is better than making a poor decision quickly and regretting it later.
Universal Life is permanent insurance (unlike term)... should not end as long as you pay the premium. Verify that that the policy is permanent.
Will the premium go up or stay level at $110. It is level premium for life?
What are the provisions for the policy? Can you increase the face amount or add riders (without underwriting)? Any special features that are worthwhile other than death benefit?
You are are covered now and do not have to go through underwriting and your are 58 years old. Could you even buy a term policy for $400k for $110/mo. Are you in perfect health? Even then the term would expire.
See what it would cost for you to buy life insurance today. Since you already own it.... it is a slightly different than considering if you would buy one if you did not have it. I won't go into it. But do not off the cuff consider the policy to be a sunk cost... it has value. This is one way to understand the value.
https://www.quickquote.com/
$110/mo for $400k looks cheap based on a quick quote I got... a quote for a 58 year old in perfect health, perfect weight, no tobacco, etc... from two companies was $2700/yr and $4000/yr. And that was for term insurance that would expire in 30 years. Do a quote so you have some frame of reference.
Next think about the "Do you need it" part of the problem. Think about unexpected life events that might happen that deplete your money. Also think about estate planning and your survivor (e.g., DW).
You need to think outside of the box for a minute. A few questions about your situation and how that policy might help you and your DW in the context of your overall plan. Think about how this money might be used by your DW or Estate upon your death.
Do not just rely on what some adviser tells you... Think about it!
You have two basic scenarios. Everything goes great as planned (no money problems). OR! Everything goes to h3ll for your finances, and you die, now your DW is left to pick up the pieces financially... now what!
- Are you rich... do you have a large amount of excess assete? In other words assets (not including home) of over $5M? Do you have enough money to carry you though any kind of crisis or is something goes wrong and you experience some huge unforeseen expenses? Eventually you will die and the survivor (DW if you are married )would have access to the funds. Are you sure a $400k tax free cash infusion to a beneficiary (e.g., DW) upon your death will not help out?
- Did your company make any sort of life insurance provision available to cover your wife?
- Do you have Long-term care insurance? If not, you need to do a LTC plan for you and your DW. But, if you are not insurable, that life policy could replace funds spent on your LTC and provide your DW with money to live on after your death.
- If you have pensions and/or SS and assuming they are available to your DW upon your death... often the payout is reduced. The proceeds from that life policy could fill the gap for your DW.
- If you intend to leave an estate (for some planned amount...say $1MM). You could keep the policy in force and consider spending more money out of your savings... and leave the benefit to the heir that would inherit the estate.
- Any other scenarios you can think of where money is depleted on purpose or by crisis while you are alive and that money needs to be replaced.
But, a consider a Male at 58 . If the premium is $110/mo (level) that is a premium of $1320/yr. Lets say that 58 yo male lives till 88 ( 30 more years which would mean living longer than a 58 yo male's life expectancy). 30 yr x $1320 = $39.6k so for $39.6k spread over the next 30 year, the beneficiary will get $400k.
You should do a more sophisticated analysis... But you need to also consider the time value of money, conservative investment returns, inflation, your mortality and the fact that the cash flow is restricted to the event of your death.