5 things to know before changing your life insurance policy

Last updated on November 25th, 2021 at 03:02 pm by Bill Tsouvalas

If you have been considering changing your life insurance policy to something that is more up to date with your lifestyle or is in need of a cover that is more affordable, but does not compromise your family’s needs then you will have to consider these five things before making the big move.

Restarting the medical examination process

Some life insurance providers will allow you to increase or decrease the level of cover you get, but you will have to clear this with your insurer first. It is possible during the adjustment process you will be requested to undergo new health checks to make sure that you get an up to date policy. If your insurer doesn’t allow you to alter the level of cover then you will have to look for a new insurer by shopping around and comparing for the best deal.

Have you considered a top-up policy?

Your life insurance policy could be lacking in some areas, but don’t be too quick to dismiss it. You could use a top-up policy, to supplement your existing one, from another insurer. Before cancelling your life insurance, you will have to consider how this will affect your family. Cancelling outright can be detrimental to their future. Rather look for other options that are available to cater towards your needs.

Know when it’s the right time to change your life insurance

Life is unpredictable, and we all have different reasons why we choose to change our life insurance policy to adapt to the times. If your financial needs change then you could find yourself wanting to look for a more affordable plan that won’t cause a strain on your income. It’s advisable that you consult with a reputable broker or your existing insurance company to see what other options are available for you before leaving.

Anticipate higher initial premiums

When making the switch you might soon realise that the new life insurance policy premiums are higher than you expected. This could be due to commission and sales that are worked into the price. When making a claim on your new policy you might also find that there is a longer waiting period. These are the many features that you will have to consider before making the switch to a new policy provider.

Don’t be quick to sign with a new insurer

Life insurance plays an important part in any one’s life, and you will have to take time considering your next move. Even if you are pressed financially don’t be too quick to jump ship to another insurer, as there are faux insurers who are looking to make a quick buck out of you.

Red flags that should make you steer clear of your new insurer are:

  • They want you to sign an incomplete contract.
  • They do not take you through a step by step process that helps you understand both the cover and contract properly.
  • The bad mouth other companies or insurers.
  • They are not an accredited provider.

Doing adequate research on the extra fees that come with changing your policy is important. Consider the features that come with it and whether if it is worth moving to a new policy.