The life insurance policy most suitable for you years ago may not be the best fit right now. Fortunately, you’re never forced to keep a life insurance policy after it’s no longer the right fit. With so many choices, you can find one that fits you based on what works best for you right now.
Why Switch to a Different Life Insurance Policy?
When initially buying life insurance, you’re doing so with your loved ones’ current financial needs in mind. As time passes, you may change marital status, have more children and/or grandchildren, and your loved ones may be in better or worse financial circumstances.
Your personal finances are also a factor. If you can’t afford your premiums, or your improved financial situation allows you to get a more expensive policy that never expires and has an investment component, you may also want to consider switching to a new policy.
What Should I Do Before Switching?
Before you switch, consider changes you can make to your current policy. You can always make adjustments to your policy when you contact your insurer. You may be able to increase or decrease your death benefit, add or remove beneficiaries, or purchase additional benefits.
However, suppose you want to make a fundamental change to obtain features exclusive to a particular type of life insurance different from what you have. In that case, you’ll need to switch.
How Do I Make the Switch?
After assessing your needs, you need to choose between term life and whole life insurance. Term life is temporary life insurance that lasts for a specific number of years before expiring. It’s cheaper, but renewing it will cause increases in premiums. Whole life never expires, and while the premiums are more expensive, you can get a cash value account that grows throughout the policy’s life to aid your personal finances.
Once you’ve decided on a policy, you can enroll online or by calling the insurance company. You may need to talk with a life insurance agent over the phone to complete the process either way.
What Should I Consider?
It’s a good idea to keep your current policy until the new one goes into effect. If you cancel your current policy prematurely, there will be no death benefit for your loved ones because you’ll be in a coverage gap. You also need to consider whether switching will be worthwhile, as you will have new expenses due to your new policy. If you’re switching from a policy you bought years ago, your premiums will be higher because you are older. There may also be tax implications and upfront costs.
Find Your Policy With All Things Insurance
All Things Insurance is here to provide the best policy that fits your needs. We will work with you to help you find the best policy you can get at an affordable price. Call us today at (763) 645-5450.