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This site is by far the most comprehensive that I've visited. As it states early in the home page,
there aren't any pretty graphics, but the information is solid and the site is easy to navigate...
Replacement of Existing Life Insurance
This is an area that requires special attention. Here are some suggestions:
Article continues directly below the quote screen...
1. Before replacing an existing contract, closely compare the two policies. Look at the rate guarantee of the old policy if any.
2. Understand that a new contestable period for fraud starts anew (usually for the first two years).
3. Understand that suicide is not covered, usually for the first two years, under a new contract.
4. Do not cancel any coverage until a new policy has been approved, paid for, placed in-force and you are satisfied with the new coverage.
Before an existing policy is replaced, it should be clearly determined by the insured that such a decision is in his or her best interest. All guarantees should be committed to writing.
Since I'm on the topic of replacement, the next section logically follows. We are getting lots of calls from existing clients seeing better rates on the Internet and are asking what to do.
Some Good News
In recent years, the rates on term insurance policies have dropped significantly. This has introduced an interesting scenario for current individual and group term (employer sponsored) insurance holders.
Rates are so low right now; those who are in good health may want to consider purchasing a brand new policy. This may cost no more than what they're paying now, possibly less. Take out your contract. Check the rate guarantee. It's possible you can find a new policy that won't cost any more, yet give you another 10 to 20 years at a guaranteed rate. Consider the positives and negatives of replacement before you jump.
Something To Consider...
Most companies give volume discounts at certain face amounts. This is usually $100,000 - $250,000 and $1,000,000. If you own more than one contract, it may be worth consolidating into one policy.
Questions? Comments? Suggestions? 1-800-542-5530