Trade In Your Life Insurance Policy For A Better One.

Does it make sense to buy a new life insurance policy even though you are older?

If you currently own life insurance, this article is specifically meant for you. The focus of this information will help you get better coverage than what you have now and the justification behind it.

For all the uninsured people with families and/or businesses that are unprotected, the first several hundred pages of google results about the benefits of owning life insurance are filled with articles that you may find useful.

You have existing life insurance coverage, here is the good news…

It is important to address an issue that is negatively affecting millions of life insurance policyholders.

There continues to be inadequate consumer messaging from our industry about just how beneficial it can be for life insurance owners to upgrade inforce policies. Undoubtedly, better messaging would help to reinforce the wisdom in considering better policies. I am not suggesting everyone run out and replace their life insurance policies. I am suggesting we do away with the negativity around the consideration of upgrading inforce coverage.

Life insurance is not a “one and done” acquisition and owners of life insurance benefit from this knowledge.

Over the past 30 years, the terms “switching” or “replacing” have become “dirty words” within the life insurance industry. They are not.

There was a time when unscrupulous agents churned business, but those agents are long gone. The industry did a nice job of policing itself. I would argue that now the pendulum has swung too far considering that some life insurance applications include replacement paperwork with dozens of pages that are nearly impossible to complete. To be clear, I am 100% for consumer awareness and consumer-oriented replacement guidelines.

Would you shop a mortgage rate if a better one seemed possible? Would you get a better car if the cost was comparable? Most people want the benefits of technological improvements. It always depends on analysis and the details. The same applies to your life insurance coverage!

Innovation is the force behind better life insurance products.

People with existing life insurance deserve to hear from us that replacing, changing or switching one policy for another may be a smart thing to consider.

It is simply not good enough for agents to be solely responsible for creating this awareness. Policyowners must get consistent messaging from insurance companies, agents, associations, industry pundits and advocates. It is imprudent to keep a life insurance policy without knowing if better coverage is available.

It begins with a current assessment of one’s health. Fortunate consumers are the ones in similar or better health compared to the time of their last purchase. They will find there are meaningful innovations for them to consider. Jumbo policies should routinely be reviewed as there are several insurance companies competing for this business.

The fact is, innovation is happening in the life and annuity industries, especially benefitting permanent life insurance products. We tend to think that because we are older, we have no sensible options for trading up. But that is not the case.

The key to enhancing coverage is health. Since life insurance companies are competing on price, being older does not preclude you from better coverage. For example, older life insurance policies DID NOT allow policyowners to take an advance from the face amount of a policy for a critical or chronic illness. New policies do because of accelerated benefit riders.

Quite frankly, accelerated benefits alone make a strong case for trading up. The advance comes from the face amount, not the cash value account. Many term policies now have accelerated or living benefits too.

There is no downside in taking advantage of better rates, lower premiums, more benefits and more flexibility.

When does it make sense to keep existing coverage? When there has been a significant change in health or surrender charges apply, it may not be possible to benefit from new life insurance. Until a policy or policies have been properly reviewed, it is impossible to know.

If your health is equal to or better than the last policy you bought, it is likely that you can upgrade. Buying life insurance today is a much simpler process and depending on the amount of coverage, it can all be done online, without a medical exam.

Please contact us at 561–771–4647 or use the form on this page. I offer a complimentary consultation to discuss anything you wish about life insurance or annuities. I am proud of the things many clients have chosen to say about us and perhaps they will give you additional insight about how we do business.
You can visit us at www.facebook.com/lifecycleplanners

https://en.wikipedia.org/wiki/Whole_life_insurance https://en.wikipedia.org/wiki/Life_insurance#Permanent_life_insurance

Originally published at Life Cycle Financial Planners, LLC.