Consumers concerned with the status of their monthly finances may think dropping their term life insurance policy would be a wise way to tighten costs. But doing so would leave them at risk financially if an unexpected incident were to ever hit them or their families.
Benzinga suggests policyholders consider altering but not completely dropping their life insurance if they're looking for a way to trim costs. The simplest way to accomplish this may be to shop around for a new policy. Rates on life insurance are near lows, and obtaining multiple life insurance quotes from a number of companies could allow consumers the chance to pick one that's more cost effective for them.
In addition, reducing the term of one's policy or the amount for which they're covered might be another way to trim costs. However, the report advises caution in this regard, since it's unwise to reduce one's benefits so much that it leaves their family at risk down the road.
Experts also advise policyholders examine their policy riders and see if there's any they could do without, instead of dropping a policy altogether.