Should I replace my old life insurance policy?

Question

For context, an agent has recommended replacing an older life insurance policy with a new contract. For context, the old policy may have cash value, guarantees, and favorable terms that are not obvious from the new premium quote. I want to base any decision to buy, cancel, replace, or rely on the coverage on the contract rather than assumptions.

Soradin · Accepted Answer

Compare guarantees, premiums, cash value, loans, health changes, taxes, and the reason for replacing it. For a coverage review, replacing a life insurance policy can restart contestability and suicide periods, create new charges, require new medical approval, and cause loss of favorable guarantees. The contract and current values provide a more reliable picture of the coverage, not on a sales summary by itself. For a coverage review, do not cancel existing coverage until the replacement is fully issued and accepted, and compare guarantees, surrender values, new contestability periods, and total cost.

Should I replace my old life insurance policy?

Soradin

Need help with your situation?