When to Consider Replacement

If you have had a Yearly Renewable Term (YRT) program for more than two years, it is likely that you would benefit by changing to a new term insurance program. Our consultants suggest that you price some level term insurance. If you have a level term policy that is more than a few years old, prices have come down so you should now get a new quote. You might be able to save money while also extending the time period of guaranteed premiums. If you have a level term policy that is near the end of the initial term and your premiums will rise, you should definitely get a quote for new insurance.

If you have cash value life insurance that is older (over 10 years), it would be wise to reevaluate that coverage. Many policies issued over 10 years ago were sold on a uni-smoke basis. This means that the insurance companies charged the same premiums for smokers and nonsmokers! Currently, insurance companies charge over twice the premiums for term insurance covering a smoker. If you are a non-smoker and are in good health, with a policy issued on a uni-smoke basis, you should investigate the possibility of replacing that coverage If your coverage is pre-1982, it should be reviewed even if you are a smoker. Many newer contracts are much more consumer-oriented.

There are several companies' policies written in the last 10 years that probably should be replaced even if they were correctly issued as non smoker policies. If you do not feel your current policy represents a good value, check with a knowledgeable agent to see if improvements can be made. If you are replacing your insurance, make sure you indicate on the application for the new insurance that you are replacing your old insurance. This will insure that whatever replacement laws are required, they will be followed in your state . Also, remember to read the section on limitations of replacement.