Tired of Pricey Life Insurance Premiums? 4 Ways to Manage a Policy When You Retire

Instead of canceling or letting your policy lapse, consider cashing it in, donating it or paying premiums another way.

A retired couple sitting on their couch look through a pile of bills.
(Image credit: Getty Images)

You’re getting ready to retire, and you’re thinking about your expenses. One expense you’d like to forgo is the premium you pay for the life insurance policy you bought decades ago. The question is: Are your only two options to pay the premiums or cancel your coverage? The answer is no, you usually have other alternatives.

Start assessing your options by first determining whether your policy is a term insurance plan or some kind of permanent insurance with cash values.

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Steve Parrish, J.D., RICP®
Co-Director, Retirement Income Center, The American College of Financial Services

Steve Parrish, JD, RICP®, CLU®, ChFC®, RHU®, AEP®, is an Adjunct Professor of Advanced Planning and Co-Director of the Retirement Income Center at The American College of Financial Services. His career includes years spent as a financial adviser, attorney and financial service company executive. He focuses on law, estate planning, taxes and financial strategies that can help enable a successful retirement.