Why and Why You Should Not Replace Your Existing Life Insurance Contract

If you have a life insurance contract, you may realize one day that your contract is no longer sufficient for your needs. You could decide that you need a life insurance policy with other features. That is, you may think about how to replace your life insurance contract. If you are interested in replacing your life insurance contract, we have a list of reasons why you should and should not replace your life insurance contract.

Why you should replace your existing life insurance contract

  • Your needs may change. Replacing your life insurance policy means that your newer life insurance policy will better suit your new needs.
  • Better health and lifestyle is a reason to replace your life insurance contract. That is, if you bought your life insurance contract as a smoker, you could change your policy after you quit smoking.
  • You should replace your life insurance policy if you find a cheaper policy with the same or more benefits.
  • If you do not trust your life insurance provider anymore, we suggest that you replace your life insurance contract.

Why you should not replace your existing life insurance contract

  • You may find the process of getting a new insurance contract stressful.
  • If you replace your life insurance contract when you are older, your new premium may be higher.
  • You may have to pay a fee to cancel your life insurance contract. Furthermore, you may have to forfeit some of your cash value.
  • Some benefits you have with your life insurance policy may be unavailable with the new life insurance contract.

Bottom line

If you choose to replace your existing life insurance contract, get a new life insurance policy before cancelling the one you no longer want.