We all understand that insurance policies are a foundational building block of financial freedom. They protect against unforeseen situations, and also offer a form of savings and investment for most.

But there are times in which you find you can’t upkeep the payments for your insurance policies. This could be due to debt — personal or business debt, incurred due to being retrenched, or the failure of a business. Or serious health issues that call for immediate medical attention, and prevent you from resuming regular work.

In these situations, many will consider terminating their insurance policies, in order to alleviate the burden. In some cases, you might get some cash back too, as part of the surrender value. But is this worth it?