Feb
20
2009
Replacing your existing life insurance policy
Author: Byron UdellMany people ask me if they should be shopping for a more affordable term life insurance policy. The answer is ABSOLUTELY. Here’s why…Term life insurance rates have dropped dramatically since 1994. For instance, in 1994 the lowest available rate for a healthy 40 year old man (20 year term policy with a $500,000 death benefit) was $995 per year. Today, that same policy is $350 annually.
When you begin shopping for a cheap life insurance policy, be cautious. Before replacing an existing term life policy make sure you consider the following categories:
- Price
- Guarantee Periods
- Convertibility
- Financial Strength of the insurance companies
- Available riders
Also, remember, that when you start a new term policy, a new contestability period also starts (usually the first 2 years). Most importantly, DO NOT CANCEL, any existing coverage until the new policy has been approved and paid for.
February 22nd, 2009 at 11:58 am
Excellent post about replacing your life insurance policy.
Another thing to consider, if you’re married, you may want to consider reviewing the life insurance policies of both you and your spouse.