The Back Pocket
Life Insurance: Getting Better Rates by Refinancing
Your life insurance needs naturally change over time. Children grow up and move on, financial situations change and families grow. If your lifestyle has changed, it’s probably time to “refinance” your term life insurance policies. By periodically examining your life insurance needs, you can explore more cost-efficient options that will save you in the long run. The cost of life insurance has dropped 60% in the last ten years. This is mostly due to the fact that we are living longer.
Competition has also caused companies to offer better rates. By changing your policy, you could have a much lower rate than was set years ago. Take the time to consider how your life has changed. If your children have grown up and gone out on their own, you may want less expensive coverage. If you’ve changed your lifestyle, such as losing weight or quitting smoking, you could be eligible for cheaper premiums due to a raise in your health status.
You may be happy with your policy, but if you’ve had it for a while, it could be worth it to simply look into your options. There are more features offered, longer premium guarantees and better conversion options available today than there were five years ago. You can buy a cheaper policy with more features. You have nothing to lose from simply looking into your coverage. Start with calling your current life insurance agent and ask him or her what they can do to fit your existing coverage to your needs. Many insurance web sites will give you a basic idea of the variety of coverages available. Remember that quotes are usually based on the healthiest level of being, which you may not qualify for. Always assume that you are receiving a low figure. Make sure that you double check with an insurance agent before committing to the coverage off of the internet sight. You can often do this by phone, or they will come to your home.
Independent agents represent many different companies and can offer you more choices. They are knowledgeable of many different policies and can find one that will best fit your individual situation. Even if you decide to stay with your current insurance company, you may find that you need to rethink the amount of coverage. You may have too much or too little. Do the math, you could save money. Don’t terminate your old policy until the new policy is in force. You don’t want any gaps in coverage to occur. If your health has gone downhill since your initial policy was created, you may not want to change policies – your rates will increase. Most insurance companies write in a two-year contestability period on new policies. That means they have the right to challenge a death claim.
Do the research and honestly evaluate your coverage needs. Refinancing you life insurance could be very beneficial to your finances.
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