Is It Time to Let Your Life Insurance Policy Lapse?

You’ve had your life insurance policy forever, and you’ve paid a lot in premiums over the years. If you let the policy lapse, you forfeit any benefits and you don’t get any of those premiums back. But sometimes that’s the right move.

A hand throws a balled up piece of paper in a waste basket.
(Image credit: Getty Images)

Taking out a life insurance policy is a smart move if you have anyone who depends on you. It’s no wonder then, that an estimated 54% of Americans have some type of life insurance. This figure only increased in the wake of COVID-19, which caused the demand for life insurance policies to increase. If you’re young, recently married or looking to start a family, most agree that the right path is clear — you should take out a life insurance policy.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Tim Fries
Founder, Lakeview Capital

Tim Fries is co-founder of Protective Technologies Capital, an investment firm focused on helping owners of industrial technology businesses manage succession planning and ownership transitions. He is also co-founder of the financial education site The Tokenist. Previously, Tim was a member of the Global Industrial Solutions investment team at Baird Capital, a Chicago-based lower-middle market private equity firm.