As time goes on, it appears the standard rates of term life insurance has been declining. This makes it attractive to seek out a lower-cost policy that may fit your needs for a term life insurance policy. Because these rates are competitive it is possible that this switch will be beneficial. However, it is important to do the proper research before dropping the old policy for the less expensive new one.
The coverage of the policy must be presented in a way that you fully understand. Be sure that the lower cost is not a direct result of decrease in coverage. Understanding all terms of the new policy will help you better compare the two and decide if switching is in your best interest.
Remember to take your health and current age into consideration when finding out if the policy is, in fact, a better deal than the one you currently have. You are at least a little older than when the initial policy was drawn up and this increase in age may make coverage more expensive. Also any health problems that may have arisen since the policy was created may effect rates on the new one. The first year or two in a life insurance policy is referred to as the contestable period. Your application may be denied due to various factors such as state of health or age of the policy holder. If this is a concern it is possible to have the new policy and the old policy overlap for this period to make sure you have full coverage at all times. Although, this will refute the cost savings in the first two years it will be beneficial in the event of an unforeseen complication.
Educated comparisons of both policies must be made to make the best decision. Be sure to understand all the differences in the policies and take into account any changes since the first policy was issued. The rates of term life insurance policies are extremely competitive, which is beneficial for the consumer. Getting the low-cost policy may save you a lot of money in the long run. Just be sure to make an educated decision after fully understanding all the facts.