Term Life Insurance Articles
Finding A New Term Life Insurance Policy After One Has Expired
2010-09-15
A term life policy can be a very protective purchase, but by definition, every term life insurance policy eventually expires. Finding a new policy to replace the expired policy will require some research, and there are several ways to find a new policy that will fit your needs.
You may decide to buy your new policy through the insurer that held the expired policy. There are a few advantages to this strategy. It can be simpler, because your old life insurance provider will have all of your information on hand, and they'll probably contact you to renew your policy anyways. You can also get some serious discounts off of the cost of your premiums, as many insurance companies offer incentives for customers who purchase a renewal. This is especially the case when a short term policy expires, such as a 1-5 year term life insurance policy. Your insurance provider won't offer you the same rate that you paid for your expired policy, however. They'll usually be charging you more due to your age, unless you've done something to improve your risks--for instance if you stop smoking, or if you switch to a less risky occupation.
There are also advantages to looking online for a completely new term life policy. Life insurance providers on the Internet face a lot of competition, and through one of the many websites set up to aggregate term life insurance quotes, you can try to find a low cost policy with the same amount of coverage as your expired coverage. You'll often find that life insurance quotes will vary greatly, and there may be hidden reasons for this; try to read through any quote before you choose a policy, and in particular, check terms that talk about exclusions or other details that might be vital to the value of your term life insurance plan. Be sure to spend some time thinking about the term length and coverage amount of the new policy, as these factors can greatly affect your premiums and policy value.
Even if you decide to use your old insurance provider, you should look online before renewing your policy, as comparing rates will give you some options when dealing with your current insurer. You can negotiate for a lower price if you print off a few low quotes to show to your insurance agent, and you may end up with a better understanding of your term life policy. Renewing your term life insurance policy may take a bit of worth, but it's a big purchase, and it's worth your time to investigate your options before beginning a new policy.
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A term life policy can be a very protective purchase, but by definition, every term life insurance policy eventually expires. Finding a new policy to replace the expired policy will require some research, and there are several ways to find a new policy that will fit your needs.
You may decide to buy your new policy through the insurer that held the expired policy. There are a few advantages to this strategy. It can be simpler, because your old life insurance provider will have all of your information on hand, and they'll probably contact you to renew your policy anyways. You can also get some serious discounts off of the cost of your premiums, as many insurance companies offer incentives for customers who purchase a renewal. This is especially the case when a short term policy expires, such as a 1-5 year term life insurance policy. Your insurance provider won't offer you the same rate that you paid for your expired policy, however. They'll usually be charging you more due to your age, unless you've done something to improve your risks--for instance if you stop smoking, or if you switch to a less risky occupation.
There are also advantages to looking online for a completely new term life policy. Life insurance providers on the Internet face a lot of competition, and through one of the many websites set up to aggregate term life insurance quotes, you can try to find a low cost policy with the same amount of coverage as your expired coverage. You'll often find that life insurance quotes will vary greatly, and there may be hidden reasons for this; try to read through any quote before you choose a policy, and in particular, check terms that talk about exclusions or other details that might be vital to the value of your term life insurance plan. Be sure to spend some time thinking about the term length and coverage amount of the new policy, as these factors can greatly affect your premiums and policy value.
Even if you decide to use your old insurance provider, you should look online before renewing your policy, as comparing rates will give you some options when dealing with your current insurer. You can negotiate for a lower price if you print off a few low quotes to show to your insurance agent, and you may end up with a better understanding of your term life policy. Renewing your term life insurance policy may take a bit of worth, but it's a big purchase, and it's worth your time to investigate your options before beginning a new policy.
