If it's already paid up in full, you could keep it or you could not. $30k isn't a whole lot as far as life insurance policies go, but it will at least allow your dependents to pay for funeral costs and maybe some months of bills if you die. On the other hand, if you DID cash it out, and put that $3,500 into an index fund and let it ride for a few decades, you MIGHT come out over that $30k. Really up to you.