We all consider life insurance at one time, or another, in our lives. Hopefully, you do ultimately go thru the purchase of life insurance, that would protect your family at the time of your death.
Over time, you may have thoughts about replacing your current policy, with another. In this article we’ll discuss 5 reasons, why you may want to replace an existing life insurance policy.
- Your current policy doesn’t provide enough coverage
As your life changes, so does your need for life insurance. Many of us take out policies when we are young, and first get married. Then perhaps you have a kid or two.
Over time, your initial life insurance policy may not provide adequate coverage. This is perfectly normal! If you reach a point in time that you need more life insurance, it may be a good idea to replace your old policy, that no longer meets your financial objectives.
- Your health improves
Many times, when you apply for life insurance, your overall health may not be exactly at its peak. Good news is, you are under NO obligation to hold onto your initial policy.
Says John Simpson of Diabetes 365, “Many people who have chronic diseases such as diabetes, may be better off replacing an old policy, with a new one. Only if there’s been significant improvements to their overall health. An example is people who have diabetes, looking for life insurance. Their diabetes control may improve over time, and may qualify for a cheaper diabetic life insurance policy.”
- Your current policy is about to expire
If you’ve owned a term life insurance policy, then you know at some point in time, the policy expires, assuming you do not die within the initial term period. In all reality, you may still have a need for life insurance.
If you are within a year or two of your current life insurance policy expiring, it may be a good idea to look into replacing your current policy, for a new one. Knowing that you will need life insurance beyond your current one’s expiration date, it’s probably wise to replace it sooner, rather than later. Every year older you turn, before applying for life insurance, the more expensive the rates will be.
- You need a different type of life insurance policy
Over time, your financial objectives may change. This includes the type of life insurance policy, that suits your needs at any given time. An example of this is how most young people begin their lives with a term life insurance policy
As you get older, there may become a need for permanent insurance. Perhaps you want a policy that accumulates cash value, that could be used as retirement income. You would always want to reconsider your personal situation and replace a life insurance policy accordingly.
People’s lives are always changing. And unfortunately, people forget to review their life insurance policies. It’s always a good idea to revisit your personal situation, at least once a year. If you need to make changes, don’t hesitate to replace your life insurance policy.