Your needs for life insurance will change over time. Children grow up and move on, money problems come and go, and families get bigger. If you've changed the way you live, it may be time to "refinance" your term life insurance policies. If you look at your life insurance needs every so often, you can find cheaper options that will save you money in the long run.
In the last ten years, the price of life insurance has gone down by 60%. Most of this is because people are living longer. Companies have also lowered their prices because of competition. If you change your policy, you might be able to get a rate that is much lower than what was set years ago.
Think about how your life has changed since then. If your kids are grown up and living on their own, you may want coverage that costs less. If you've made changes to your lifestyle, like losing weight or giving up smoking, you may be able to get lower premiums because your health has improved.
You might be happy with your policy, but if you've had it for a while, it might be a good idea to check out what else is out there. Now, compared to five years ago, there are more features, longer premium guarantees, and better conversion options. You can get a policy that costs less and has more benefits.
You have nothing to lose by checking out your policy. Start by calling your life insurance agent and asking what can be done to make your coverage fit your needs.
Many insurance websites will give you a general idea of the different types of coverage that are out there. Keep in mind that quotes are usually based on the healthiest person, which you may not be. Always think that the number you are given is low. Before you buy coverage from an online site, make sure to check with an insurance agent again. Most of the time, you can do this over the phone or they'll come to your house.
Because they work for many different companies, independent agents can give you more options. They know a lot about different policies and can help you find the one that will work best for you.
Even if you decide to stick with your current insurance company, you may need to change how much coverage you have. You might have either too much or not enough. You could save money if you do the math.
Don't cancel your old policy until your new one has started. You don't want there to be any gaps in coverage.
If your health has gotten worse since you got your first policy, you might not want to switch because your rates will go up. Most insurance companies give new policies a two-year window in which they can be contested. So, they have the right to dispute a claim of death.
Do your research and be honest about how much coverage you need. You could save a lot of money by refinancing your life insurance.
