A person who does not know the benefits of investing in life insurance policies or continues to delay this investment is bound to suffer from a loss of their wealth’s value. Such people miss the opportunity to grow their wealth and suffer from a lack of financial security later on in life.
According to William Schantz, investing in a life insurance policy is one of the best decisions one can make, especially if they are the breadwinners of their family. While many people choose to cancel their life insurance, experts usually advise against it.
Continue reading below to learn about the top four reasons why you should rethink before cancelling your life insurance policy.
Top Four Reasons for Not Canceling Your Life Insurance Policy as Per William Schantz
It is very common for people to cancel their life insurance policies when going through a tough financial situation. As a matter of fact, the number of Americans canceling their life insurance policies due to the Covid 19 economic crisis is at an all-time high.
While some people who have no jobs or insufficient income to pay the lowest premium might benefit from canceling their life insurance policy, some might be making a huge mistake by proceeding with their cancellation.
Below are the top four reasons you should not cancel your life insurance policy:
1. Your Whole Life Insurance Policy Is Not Older than Ten Years
If you have invested in a whole life insurance policy, then cancellation will only do you some good if the life insurance policy is older than ten years.
If ten years have not yet passed since you applied for the life insurance, then cancelation will keep you from being able to receive any cash value that has been accrued over time. Instead, William Schantz says that the fee you will pay for the cancellation process will be greater than the amount you will end up receiving.
2. You Can Get Lower Premiums – As Long As You Ask
Usually, people make a hasty and uninformed decision while canceling their life insurance policy. They are unaware of their other options and end up making poor and desperate financial decisions.
If you are struggling with paying the high premium amount, then the first thing you need to do is inform your insurance issuer about your current financial situation.
It is not uncommon for an insurance company to lower the premium amount if they can confirm that their issuer cannot pay the set amount.
3. You Have Present or Future Financial Obligations
Schantz suggests that if you have any present or future financial obligations, you should refrain from canceling your life insurance policy.
This is because your situation requires that your wealth continues to grow to pay off your debts, create a good life for your children, afford a house, and live a good life. While the cancellation might offer you some immediate financial relief, you might end up regretting this decision in the long run.
4. Your Family Is Financially Dependent on You
If you are the sole or primary breadwinner of your family, you need to be concerned about shouldering the financial burdens of your loved ones.
Canceling your life insurance policy will not only create a problem for you when you have to pay for your children’s college or your house’s mortgage, but it will also put your family in a financial pinch after you die.
William Schantz’s Wise Advice
If you have to cater to the financial needs of your loved ones and have already invested in a life insurance policy, then William Schantz advises you against canceling your insurance. Doing so may offer temporary relief; however, it will put you and your family through a major financial crisis in the future.