Cashing out of Life Insurance

[cbloom]

I have this life insurance policy that my grandparents bought for me when I was born. I don't really have any reason to have life insurance (no wife/kids, etc) and think it's basically a scam, so I was thinking of cashing out of it and taking the money. It currently pays around $30k if I die and the cash value is around $7k.

Is there any thing I'm not aware of why cashing out would be a bad idea?