A Guide to Switching Life Insurance Companies

Jessica Thomas

Many people want to purchase a life insurance policy for the peace of mind and security it provides but don’t know where to start. Others who have policies may find that they want to switch to a different insurance provider. Some aren’t even aware that they have the ability to switch life insurance companies if they want to. Whatever the cause is for your desire to switch, it may be easier than you think to obtain the life insurance coverage you prefer. If you’re debating the quality of your coverage, read on for a guide to switching life insurance companies.

How can you switch life insurance companies?


There are a number of reasons you may find that your life insurance doesn’t meet your needs. Sometimes your experience with your current insurance company hasn’t been positive. In other cases, the level of coverage you need may have changed. You may have reached the end of your term policy and need to obtain coverage. It’s also possible that you’ve received a quote for life insurance that offers a more reasonable price for you and your family.

If finances are a concern, term life insurance policies can often be more affordable than other types of life insurance. They’re also simple for policyholders. When using term life insurance, your policy will cover a certain number of years, and the level of coverage will depend on your individual situation.

When switching life insurance companies, it’s important to keep in mind that you should have a new policy before canceling your old one. After choosing the type of insurance you want, decide what coverage you need and reach out to an insurer for more information. When your new policy has been purchased and is active, you can reach out to your previous life insurance provider to cancel your previous policy.

How is your monthly premium calculated?


Several factors go into determining what your monthly premium will be. The type of policy you choose is a major determinant when it comes to price, with term life insurance often being the most affordable option. The amount of benefit you want to be paid out to your beneficiaries is also considered. The length of your policy, particularly when purchasing term life insurance, will also impact the quotes you receive.

Most insurance companies also require a medical checkup prior to providing your life insurance policy. You may even discover important health information during this process. There are some conditions and lifestyle factors that can affect the price of your coverage, including high blood pressure, high cholesterol, chronic illness, and recreational drug use. Those who participate in risky activities like extreme sports may also see this reflected in the price of their coverage.

In many cases, your age and gender will also play a role in your life insurance quote. Men often pay higher premiums due to the fact that women have a longer life expectancy. Policies for both term and other types of life insurance tend to increase in price as you age. Given how many different data points are used to calculate the premium for your life insurance, it’s a good idea to talk to an insurance professional if you have questions about obtaining or switching your coverage.

When deciding whether or not to switch life insurance policies, there are a lot of considerations to take into account. Whether for reasons related to the type of coverage you desire or for financial reasons, you may find that you need to switch your life insurance policy. The most important thing to keep in mind is that you should never have a gap in coverage, and you should always have a new active policy before you cancel your old one. After you choose which plan is best for you based on the quotes you receive from other life insurance companies, you can take the next steps toward making a switch.