Expert Q&A
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Email to a FriendHow do I know if it's appropriate to replace my existing life insurance policy?
It is always best to run an in-force illustration and compare it to what is available today. Many policies do not perform as illustrated from the beginning. Many people who have life insurance policies don’t bother checking them periodically and just pay the premiums. Many insurance agents don’t follow up appropriately with their clients to ensure they have the best policy and coverage available. Besides having better insurance rates today than in the past, it’s always wise to see if there are surrender fees to cancel or replace one policy and move to another. Always consider at professional that really knows and understands life insurance. An independent agent would be your best bet.
It is always best to run an in-force illustration and compare it to what is available today. Many policies do not perform as illustrated from the beginning. Many people who have life insurance policies don’t bother checking them periodically and just pay the premiums. Many insurance agents don’t follow up appropriately with their clients to ensure they have the best policy and coverage available. Besides having better insurance rates today than in the past, it’s always wise to see if there are surrender fees to cancel or replace one policy and move to another. Always consider at professional that really knows and understands life insurance. An independent agent would be your best bet.
Once you look at the side by side comparisons of the in-force ledger of your current policy with the proposed policy you need to consider what has changed with your health since you first applied for the current policy. Usually this would be best to have this conversation with your professional first before considering a replacement.
After you sat down did a cost-benefit analysis, to see which policy would bring you most value and would put you or your family in the best financial situation, you will THEN be able to KNOW which policy is best. It is always advisable to have a written game plan.
Here is a helpful link:
http://www.youtube.com/watch?v=gvjir8yxPUI
