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Could I stop paying for term life insurance if I don't need it anymore?

Hi, I'm debating between 25 year and 30 year term life insurance. Need for 30 is primarily because we still have almost 30 years of mortgage. Can I get 30 year term and then at 25 years or whenever, if we happen to pay off our mortgage early, stop paying premiums for term life insurance? Or am I required to pay for 30 years and if I don't would there be some kind of a penalty? Thank you!

Public Comments

1. Of course. 30-year term insurance is not a 30-year "contract" on your part - it simple allows you to keep the insurance in force for 30 years. If you fail to pay term premiums, the policy is simple canceled.
2. Check the terms they sent you when you signed up. Most will let you cancel the policy at any time and waive the right to any future coverage and prior agreed coverage. Remember that life insurance is for more than just paying off a mortgage. It's inevitable that we'll all die and it's good to have a strong policy so those left don't have to struggle. Say for instance you are married and make most of the income. Even if your mortgage is paid off, if you die your remaining spouse and kids may not have enough money to live from day to day. A life insurance payout would tide them over for a long time until they were able to figure out how to make up for the difference or downsize.
3. Absolutely. You can stop paying for it at any time - when you no longer have a need for it, or when you find a better deal. There is no penalty for cancellation.
4. There's no penalty for the cancellation. You can stop paying it any time you want.
5. Ladylane raises an important point. Just because your mortgage is paid off does not mean that you do not need life insurance. If you get a policy now at a young age and in good health you lock in a good rate. If you cancel later, and you can if you want to, and then want life insurance later the rate will be much higher and no one knows what your health will be like in the future. So, no you do not have to keep the policy but it may be a good idea depending on your circumstances.
6. You can pay one month and stop paying. BUT, if you continue to pay then your premium won't change for 30 years (assuming of course that it's a guaranteed premium). Make sure you're buying through a term life insurance broker. Getting quotes for a few companies isn't good enough. You should go to a web site that can quote just about every policy out there. There is a wide range of rates and it's not uncommon to find one that's half the price of another. Also, not many companies sell 25 year term so you're less likely to find as much competition there. Good luck.