Life Insurance equity?

[readytorock]

Last month I went from full-time to part-time at my "day job" to start freelancing.

I received a letter notifying me that my Life Insurance policy with the company can either be transferred to a personal policy or dropped now that I'm no longer full-time. I have no dependents and am planning on just dropping it, but my question is, would my life insurance policy after 6 years have any equity? Should I transfer it to a personal policy and cash out the equity (if there's any there)?

I don't even know if life insurance policies earn equity, but they say that there are no stupid questions, so...

[sweeps]

Probably not. If it was through your employer, it was probably term life insurance which does not build cash value.

[readytorock]

Okay, thanks sweeps, just wanted to check before throwing away any possible money. =)

[disneysteve]

I agree. Most likely it is term coverage, so no equity.

If you are single with no dependents, probably no reason for you to get coverage on your own at this point. If nobody is dependent on your income, there isn't really anything to insure, though some people like to keep a small policy ($10,000) to cover funeral expenses.