Should I cash in my life ins policy?

[checkin]

I am 58, have a term life policy (Adj. Comp Life) with a cash value of $12k. I have had recent hearts surgery, & have to go back in another 2 years for open heart for the surgeon to extend my life another 10 years.
We are both unemployed, but house & cars paid off, should I cash in my policy for household expenses, & medical bills, & take out another policy, & if so, what kind?

[disneysteve]

Welcome to the site. Sorry to hear of your health problems.

Just to clarify, you do NOT have a term life policy. You have a whole life policy. Those are two very different things.

I think the first question is do you still need life insurance? Since you are unemployed, I'm guessing nobody is financially dependent on you. Would anyone incur a financial hardship if you were to die? Do you collect disability payments, for example, that help support another person?

If you do need insurance, do you qualify for it at this point given your health history? You can try applying for a term life policy and see what they say. They may reject you entirely. They may cover you but with a high premium. You have to decide if that is worth it and if you can afford it. If you do qualify, don't cancel the current policy until the new policy is in effect.

If you don't qualify for new coverage and still have a need for life insurance, then you're probably stuck keeping the policy you're got now.