Even though you are older, it can often make sense to buy a new life insurance policy.
We tend to think that because we are older, we are prohibited from getting a better policy. But that is not the case. If you currently own life insurance and you are healthy, there is better coverage out there. This is intended to help you acquire better coverage and the rationale for doing so.
First, you have nothing to lose by shopping the market.
Here is the good news:
Life insurance is not a “one and done” acquisition. Would you shop a mortgage rate if a better one seemed possible? Would you get a better car for a better price? Most people want the benefits of technological improvements. The same applies to life insurance!
Of course, it always depends on individual analysis and the details. I am not suggesting life insurance owners run out and blindly replace their life insurance policies. I am suggesting there is no downside to considering better coverage.
Over the past 30 years, the terms “switching” or “replacing” became “negative terms” within the life insurance industry. They are not, by definition, negative terms.
There was a time when unscrupulous agents churned business, but those agents are long gone and protective measures are part of the fabric of our industry. The industry does a nice job policing itself.
I would suggest that the pendulum has swung too far. Some life insurance applications in some states include replacement paperwork with dozens of pages that are nearly impossible to complete. To be clear, I am 100% for consumer awareness and replacement guidelines that protect life insurance buyers.
Innovation is the force behind better life insurance products.
People with existing life insurance deserve to know that replacing, changing or switching one policy for another may be a smart thing to consider. Policyowners must become aware of this 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.
Let me help you choose the best policy for your needs. Let’s get started.
The process begins with a current discussion of your health. Fortunate consumers are the ones in similar or better health compared to the time they last bought a policy. There are meaningful innovations to consider.For example, accelerated benefits alone make a strong case for trading up. Accelerated benefits give policyowners the ability to take an advance against the policy. The advance comes from the face amount, not the cash value account, and it is not a loan. Many term policies now have accelerated or living benefits too.
If your current health is similar to 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.
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. Jumbo policies should routinely be reviewed as there are several insurance companies competing for this business.
Please contact Ted Bernstein at 561-771-4647 or use the form on this page. You can email Ted at [email protected]. He offers a complimentary consultation to discuss anything you wish about life insurance or annuities. Read what other clients have chosen to say about Ted. Please visit at www.facebook.com/lifecycleplanners
(For all the uninsured people with families and/or businesses that are unprotected by life insurance, the first several hundred pages of google results offer advice about the benefits of owning life insurance. If you don’t own any life insurance, it may be far less expensive than you think).
Also published on Medium.