Life Insurance policy replacement facts

Life Insurance policy replacement facts

You may have reached a moment when you want to replace your life insurance policy.

You may find something that works better for you, or you may have had some personal change that necessitates a change of policies. No matter the reason, you need to be careful when you are changing and replacing your policy. Some insurance agents and brokers do not have your best interest in mind, and they will try to get you to change your policy simply so they have more work and will be able to make more money off you. Before you decide that you really need to replace your policy, make sure that it’s the right decision.

One of the first things that you will want to find out is if you have any surrender penalties that you will have to pay if you decide to cancel your current policy. These penalties can cost thousands of dollars if you cancel within a certain period. Some policies that you’ve had for a number of years may even be providing you with tax benefits. Consider those when you are considering changing policies.

 

You might even find that you can amend your current policy through the same company you have now. They may be able to change the policy to fit your needs better. This can be much easier than trying to find a new company for your policy.

 

Always look at all of the terms and language in the new policy that you are considering. You need to make sure that it is actually better than the one that you have currently. While you are looking at the new policy, make sure that you check for exclusions and the suicide clause so you know when the company will and will not pay out.

As you can see, sometimes it does make sense to change to a new policy for your life insurance. Other times, it doesn’t make sense and you might be better off keeping the policy that you currently have.

 

You should always make sure that you have a qualified broker with a good reputation helping you decide on your insurance policy. He or she will be able to help you to understand all of the information in your life insurance policies, and you should never hesitate to ask any questions that you might have. The more information you have and the better you understand it the easier it will be to make a good decision.

 

Please feel free to contact Aman Kapur at www.youinsuranceguy.ca or by phone 1-416-509-2540 to assist with the plan of your choice.

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