traineeinvestor
Thinks s/he gets paid by the post
I have a term life policy which I am intending to cancel.
The reasoning for cancelling is that if I have enough money to support myself and my family once I FIRE, then there must be enough money to support my family without me. There is no estate duty in Hong Kong (nor is there expected to be) so I do not need it for that purpose. On that basis, I view the premium as a wasted expense and money that is better spent on other things or experiences.
The only reason I am hesitating is that the premium is fixed at a very low rate until I turn 53 in 2019. If I cancel and had to reinstate coverage for any reason, the premium would be much higher (how much higher depending on age etc at that time) and would also be subject to any medical conditions I had at the time.
I do not have the option of partially reducing the coverage - it's all or nothing.
DW was the largest beneficiary and she is fully on board with cancelling. The other (lesser) beneficiaries were my siblings who never knew they were on the policy and (i) do not really need the money but (ii) will get a small bequest under my will instead (conditional upon my estate being over a specified threshold).
Is there anything else I should consider before I cancel?
The reasoning for cancelling is that if I have enough money to support myself and my family once I FIRE, then there must be enough money to support my family without me. There is no estate duty in Hong Kong (nor is there expected to be) so I do not need it for that purpose. On that basis, I view the premium as a wasted expense and money that is better spent on other things or experiences.
The only reason I am hesitating is that the premium is fixed at a very low rate until I turn 53 in 2019. If I cancel and had to reinstate coverage for any reason, the premium would be much higher (how much higher depending on age etc at that time) and would also be subject to any medical conditions I had at the time.
I do not have the option of partially reducing the coverage - it's all or nothing.
DW was the largest beneficiary and she is fully on board with cancelling. The other (lesser) beneficiaries were my siblings who never knew they were on the policy and (i) do not really need the money but (ii) will get a small bequest under my will instead (conditional upon my estate being over a specified threshold).
Is there anything else I should consider before I cancel?