Is there any good reason to hold on to a small term life insurance policy that will be cancelled at term and will not be worth anything or surrender and get the cash value?
Term life insurance has no cash value. It is pure life insurance, not an investment.
You pay for and receive life insurance protection only, no cash value, with a term life policy.
Yes, if you outlive the term, the coverage ends, but a renewable term life plan will allow you to renew your policy for an additional 10 year term at expiration with new rates based on your age at that time.
Also, return of premium term life insurance will return most of your paid premiums back to you if you outlive the term of your policy, but this type of term life plan costs more than regular term life insurance.
Finally, people buy life insurance to provide their loved ones with financial security in case they die. So, why would you cancel your life insurance policy if you still need life insurance?