Agent Owner, Gilmore Insurance Services, Marysville, Washington State
When do you stop paying for term insurance? When you decide that you no longer need the coverage and wish to discontinue it. While it is nice to provide written notice of cancelation to the company, mainly in the case of getting unused premium refunded, it is not necessary. You can just let a policy lapse if you desire.
When the premium goes up at the end of a Term life insurance policy is a good time to stop paying the premium. From that point on it will continue to go up in price annually, so unless the Insured person is very ill and does not plan on surviving for many more years, it will become cost prohibitive to keep paying that premium.
It would be better to convert the Term policy to a permanent one before the premium goes up, because the conversion is not possible after that. If you are going to pay a higher premium, why not pay it for a permanent policy via a conversion, rather than one that will go up each year.
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It would be better to convert the Term policy to a permanent one before the premium goes up, because the conversion is not possible after that. If you are going to pay a higher premium, why not pay it for a permanent policy via a conversion, rather than one that will go up each year.