Term Life Insurance Articles
How To Change Your Term Life Insurance Carrier Over The Phone
2010-11-08
When you've been paying for a term life insurance policy for some time, the decision to switch a carrier can be very difficult. This is because you're likely going to lose some money unless your term life insurance policy is about to expire; you've been paying for your premiums, but you'll lose all of the time that you've invested into your policy. On the other hand, term life insurance isn't really meant to be an investment, and sometimes you can find much better benefits or lower premiums than what your old term life insurance company had offered. In these situations, deciding to change carrier companies can be more than worthwhile and the process of making the switch can be very simple.
In most situations, you'll simply have to contact your insurance carrier and ask for your policy to be canceled. Depending on the insurance company's policies, the policy may be canceled immediately, and you may receive a refund for any unused portion of your premiums. While you're on the phone with your term life insurance provider, however, you may want to do a bit of negotiation. Explain the reasons that you've decided to change carrier, and you may be offered a better rate or more coverage from your current provider. Ultimately, it's up to you to decide which carrier to use, but there's something to be said for staying with a particular provider if you're comfortable with the way that their service works.
Before you make the call to cancel your term life insurance policy, make sure that you've got another policy ready to go. Look online at quotes to make sure that you've got a good plan and contact your insurance representative before you cancel your old policy to make sure that you don't have a gap in your coverage. Ask when the new policy will start and wait to make a call into that date. This will ensure that you're protected by the term life insurance policy at all times.
It's important to avoid switching term life insurance carriers too often. Every time you switch, your rate will likely increase, as you'll be a bit older and aging is one of the major factors that term life insurance companies use to decide their rates. You may also face cancellation fees and other unexpected charges. It's best to do as much research as you can before you ever purchase a term life insurance policy in the first place, as this will make it much easier to find and buy a sound financial product.
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When you've been paying for a term life insurance policy for some time, the decision to switch a carrier can be very difficult. This is because you're likely going to lose some money unless your term life insurance policy is about to expire; you've been paying for your premiums, but you'll lose all of the time that you've invested into your policy. On the other hand, term life insurance isn't really meant to be an investment, and sometimes you can find much better benefits or lower premiums than what your old term life insurance company had offered. In these situations, deciding to change carrier companies can be more than worthwhile and the process of making the switch can be very simple.
In most situations, you'll simply have to contact your insurance carrier and ask for your policy to be canceled. Depending on the insurance company's policies, the policy may be canceled immediately, and you may receive a refund for any unused portion of your premiums. While you're on the phone with your term life insurance provider, however, you may want to do a bit of negotiation. Explain the reasons that you've decided to change carrier, and you may be offered a better rate or more coverage from your current provider. Ultimately, it's up to you to decide which carrier to use, but there's something to be said for staying with a particular provider if you're comfortable with the way that their service works.
Before you make the call to cancel your term life insurance policy, make sure that you've got another policy ready to go. Look online at quotes to make sure that you've got a good plan and contact your insurance representative before you cancel your old policy to make sure that you don't have a gap in your coverage. Ask when the new policy will start and wait to make a call into that date. This will ensure that you're protected by the term life insurance policy at all times.
It's important to avoid switching term life insurance carriers too often. Every time you switch, your rate will likely increase, as you'll be a bit older and aging is one of the major factors that term life insurance companies use to decide their rates. You may also face cancellation fees and other unexpected charges. It's best to do as much research as you can before you ever purchase a term life insurance policy in the first place, as this will make it much easier to find and buy a sound financial product.
