What to Know About Replacing or Changing Your Life Insurance
May 1, 2019
Changing or replacing your life insurance coverage is something that you can do, but it may not be as simple as you think, or in your best interest. Before you begin the process, it’s important that you have an understanding of why you want to change or replace your coverage, and how the process works. We have the information right here.
Changing Your Coverage
Changing or replacing your life insurance is not a small decision. If you choose to replace your current life insurance coverage with another plan, you will probably need to undergo the life insurance underwriting again.
You may have the option to convert your current policy into a new one. If you are thinking about changing up your coverage, start by contacting your life insurance agent, explaining what you want to achieve, and asking if there’s any way to convert your policy or add a supplemental one. For example, if you currently have a term life insurance policy that’s coming to an end soon, if you speak with your agent before the policy expires, you may have the option to convert it into a whole life insurance policy that will seamlessly pick up where your old policy left off. This will prevent you from having to face any period of time without coverage. If converting your current policy is not an option, you may need to purchase a new policy.
How to Change Your Coverage
Unfortunately, changing your life insurance policy (or replacing it with a new one) is not as simple as exchanging other types of insurance policies (for example, auto insurance).
When you meet with the agent, make sure to explain why you think you need new coverage.
It is very important that you do not cancel your existing policy until you have confirmed your replacement policy. Even if you obtain a new policy the following week, going any amount of time without coverage is a very big risk to take, and it is one that is easily avoidable.
Call your agent and give them all of the important information:
- How long you want to be covered
- Which benefits you would like to reap from your policy
- What your lifestyle is like
- Whether you have any health problems or a family history of health problems
- The state of your finances
Since you will be older and likely in a different physical and financial state, you may find that your policy options are different than the ones you had the first time around. This is a good thing. You want a policy that suits you and your life.
Can You Just Give Up Your Current Coverage?
Technically you can, but we don’t recommend doing this under any circumstances. The risks of going without life insurance coverage far outweigh the benefits.
Call your agent today, and they’ll help you to figure out exactly what you need to insure your life.
About National Catholic Society of Foresters
At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. Sales from our financial services products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs. Our portfolio is extensive, ranging from various life insurance policies to IRA’s to support your financial needs no matter what stage of life you’re in. For more information, contact our friendly experts today at (855) 804-7424.