There may come a time when you consider changing your life insurance policy. Whether or not you should ultimately depends on the policy, your long-term financial goals, and the needs of your loved ones. Before you make the switch to a new life insurance policy, you’ll want to ensure you ask the following questions:
How does the new policy compare with your existing life insurance policy?
If you’re simply looking for a policy with lower premiums, ensure that you’re comparing two similar plans. For example, there is a big difference between term life insurance and whole life insurance policies. While term life insurance is almost always more affordable than whole life insurance, the term policy will expire and does not guarantee a benefit payment.
Are there any charges should you leave your existing life insurance policy?
In some cases, you may be required to pay thousands of dollars to your insurance company should you want to cancel your policy, significantly decreasing the benefit of changing plans. Before making the switch, talk to your insurance company about any fees you’d be responsible for should you decide to change, or cancel your life insurance policy.
Is it possible to simply modify my existing life insurance plan?
Should your financial needs change, it may be possible to reduce your life insurance coverage, or add a new rider to better meet your needs. Speak with your insurance company to fully understand your options should you need to change your policy. Often it’s best to simply change your policy with your existing insurance company, rather than cancel it in favour of a new life insurance plan.
When changing life insurance policies makes sense.
When your financial situation, or the needs of your loved ones change you may also want to change your life insurance policy. While it can be costly or challenging to alter your plan, in some cases, it’s well worth the effort. Be sure that you’re working with a reputable broker, talk to your existing insurance company, and when in doubt get a second opinion.
Canada Protection Plan is a leading provider of No Medical Life Insurance. Call us today, toll free at 1-877- 851-9090 for your no obligation quote.
