My friend is 62 and has an adjustable life insurance with 250,000 face value, a premium of 2500 per year and a cash surrender value of around 30K. she was gonna stop the insurance and take the cash but has not done so. She skipped payment for 2 years and they are treating it as a loan @ 8.25%. Her accountant told her to keep paying the premium because even if she lives another 30 yrs she will be paying only 75K in premium but her kids will get 250K benefits tax free as inheritance or to pay estate taxes etc. when she dies. I said if it was me and I can afford it (and only then) I will do it. Does this make sense to you? She wants to just leave it until the cash surrender value runs out then make it lapse ( about 10 years). I said if that's what she wants to do might as well take the money out now. If you have enough money saved for retirement and can afford to pay premiums, would you do it?