9. False is correct. Even if you truly don’t need the life insurance any more, dropping an existing life insurance policy could be a mistake, since it may have other valuable uses. For example, you could donate the policy to a favorite charity along with the money to pay the premiums. That way, you have a new tax deduction and, if you die while the policy is in force, the charity gets the death benefit. Or, if the policy has a cash value, you could surrender it for the cash value or convert the cash value into an immediate annuity that pays you a lifetime income.