@RonO805672 How long is a long time? 25 years? 30 years? Longer? If the policy is a permanent life such as whole life, universal life, etc., you have probably accumulated a significant amount of cash value. If so, you should consider that policy a financial asset and use as resource for your retirement, wealth transfer, or estate, strategies. As you may not be aware, loans against cash value are tax free and may increase your retirement income without drawing down your IRA balances which are taxable. Of course, your value of the policy will decrease by the amount you borrow, but you indicated that you no longer need the policy. If the life policy is term insurance, there isn't any cash value. I would consider converting either all or some part of a term policy to permanent inasmuch as you are already insurable with that company. You can use permanent life for wealth transfer, liquidity to pay any estate taxes, long term care (hybrid type of policy), or retirement income as I indicated above. If you are under age 65, the premiums may still be competitive. It would be helpful to find an agent that is well versed in using life insurance as a wealth management strategy especially in view of Section 7702 of the U.S. Tax Code.
