Are you wondering whether to hold on to the life insurance you purchased a long time ago? Here are a few things to consider before you decide.

What to consider

First, ask yourself if the insurance still meets your needs.

Then find out if there would be any taxable proceeds from the policy if you were to cancel it. This is likely to be the case if you purchased the policy quite a while ago, and if it has a cash surrender value.

Determine how much the policy costs by calculating how much you pay in premiums, the value of dividends you might be entitled to and the policy's accumulated cash value.

Finally, remember that if you take out a new policy, you might have to provide evidence of insurability, which could prevent you from obtaining any coverage.