All consumers should have their life insurance policies reviewed if they have had them for more than a few years. Some universal life policies that were based on projections made when the economy was stronger may be “underwater” and may need more robust premium payments to sustain them over the long term. Premiums of other policies may be based on old tables measuring life expectancy. In this instance, individuals may be able to lower premium payments or increase the death benefit.
Policyholders should never simply drop policies they no longer need or can afford. They may be giving up a large benefit for their heirs and they may be able to sell the policy for a larger return than the policy’s cash surrender value. It is also always important to check the current beneficiaries on the policies and get confirmation from the insurance company as to what beneficiary they have on file.