Usually it is not advised to replace an existing policy unless it is very important. This is because it may not be in your best interest. Some insurers usually give a ‘Definition of Replacement’ form when you buy life insurance. The content differs from one insurer to the next. If you’re still thinking about replacing it, then here are some things to know.
Contact the Insurance Company
Contact the company as soon as you make up your mind to replace the policy. Usually, depending on several other factors, the insurer may provide alternatives to adjusting your current policy instead of effecting replacement.
In life insurance, the older you are, the higher the premium. Obviously you will be older now that you’re requesting for replacement than when you first bought the life insurance. You should expect an increase in premium for this new policy.
In line with the age factor, if your health has deteriorated since when you bought the first policy, you should expect the premium for this new policy to be increased accordingly. Your health habits will also be taken into consideration. If within these periods, you started a health habit that can affect the general condition of your health; the premium should also be expected to increase.