You aren’t happy with your existing life insurance company, or you’ve found someone who is offering a significantly better deal. Either way, you need to make the change, but you want to make sure that you’re going at it correctly. When you switch to a new auto insurance or homeowners insurance policy, the only thing you need to do to change insurance provider is to make sure that your coverage dates overlap. It’s more complicated with life insurance, which often has some form of financial benefit and other complexity associated with it.
One of the biggest considerations is that you have to re-qualify for health insurance with a medical screening. Not everyone is eligible for life insurance, and certain medical conditions do disqualify you. If you had a more favorable health profile when you first signed up for life insurance, you may want to reconsider the change.
The waiting period on death benefits for certain reasons, such as suicide, also resets, which is typically a two year waiting period. In addition, any upfront fees associated with the life insurance policy also have to be paid on the new policy. It’s certainly worth it for lower premiums, higher benefits, and other advantages that you can get from other insurance policies, but it’s important to know the process.
You also have to look into any tax implications surrounding closing an existing life insurance policy and opening a new one, if any. Get in touch with us so we can guide you through all of the steps required for making sure you aren’t incurring any penalties you don’t need to.
Finally, it’s always important to make sure that you have a new policy in place in Texas prior to cancelling your old one. We’re here to help make the transition as easy as possible, so make sure to get in touch or use our free online quotes system to find out what life insurance options you have.