Posted: Mon Nov 17, 2008 12:01 pm Post subject: swaping life insurance
Hi, is there anything that I'd need to consider before changing my life insurance policy? Any thing that I'd need to avoid under such circumstances?
Thanx, Plasticmind _________________ Register Now to have your Insurance queries solved.
Yes, you'd need to know certain things under circumstances that you're being guided by a life insurance agent towards changing your existing life policy with a new one. Make sure of the fact that agents under most cases would like to fetch the cash value of your existing policy and utilize it towards procuring a new one. Crossbreed _________________ Register Now to have your Insurance queries solved.
Yupp..my friend, I thing you should remember the following points whenever you're out to change it with another one-
Don't forget to calculate the extra costs that would be associated with your new policy. Consider the fact that your premium-payments for the life of your policy may just increase since you get into a new policy!
Also, your new insurance carrier may not be worth your existing one's fund potential. So, do take all these facts into consideration before you'd opt for the new one. Roddick
So, do take all these facts into consideration before you'd opt for the new one.
There are other facts like the potentiality of your agent. You'd need to understand whether he is properly trained or whether he has the proper education to guide you under such circumstances. Also, make sure that you follow the taxation-effects of your policy change.
Regards, Fatman
My friend, please don't forget to study the different advantages that come with the new one and compare the same with your existing one.
Go through the process of obtaining a loan on the new one. There could be some differences and you may need to ask questions regarding the same.
Again, it is important for you to check out the cash value of your existing one. It could just fall short of the worth of your new policy. If that happens, you may need to pay additional amounts in the future!
ArindamSenIndies
Hi all..I'd rather consider shifting to a new policy with my existing insurer. This might help to keep my premium charges more consistent and may even restrict the associated costs. Before I'd shift in to a new one I'd definitely consult with my agent. BarbieL _________________ Register Now to have your Insurance queries solved.
Before I'd shift in to a new one I'd definitely consult with my agent.
I think you should avoid agents who'd want you to hide this policy change from your existing carrier as well as your relatives and friends. Also, remember that you should never sign incomplete forms or forms bearing clauses that are inexplicable to you. Purpleheaded08 _________________ Register Now to have your Insurance queries solved.
Yes, thats quite true!
There are agents who would always push you to use the current cash value for paying the premiums of your new one. They would also stress on the point that such a move would invite unlimited benefits for you- which in reality is not quite the truth.
These are the people who'd find faults with the other agents or companies and base their sale on such conditions rather than their own policy benefits. So you got the catch!
OldmanGarcia _________________ Register Now to have your Insurance queries solved.
Posted: Mon Nov 17, 2008 2:08 pm Post subject: Changing Life Insurance Policy
You may want to consider a few things before changing your life insurance policy:
1. What is your goal for making this change?
2. What will the new policy cost you, any increase in premiums?
3. Will you get more or less life insurance coverage?
4. Are there any tax implications if you make this change?
5. What is the financial stability rating of the new insurance company? Or, are you remaining with the same company?
6. Is this your idea, or your insurance agent's? What is his / her motivation for you to change your life insurance policy?
7. Never switch life insurance policies until you have applied for a new policy, been approved, and paid your new life insurance policy premium - It is "In Force".
8. Make sure you review all policy exclusions and limitations which may affect your coverage.
9. Is your premium guaranteed to remain the same each year throughout the life of your policy?
10. Does your coverage amount remain the same throughout the life of your policy?
11. How long does your life insurance coverage last? Is it a term life insurance policy, or is it permanent life insurance, providing lifetime coverage?
These are a few things to consider.
I hope that helps. _________________ Visit http://www.term-life-online.com to learn how term life insurance works and compare free quotes today.
Yes..If you are thinking of switching, you should at least make sure that if it is a term policy that it might go further out if your premiums are more. You do have to concider your age and health now. If while you had your current policy your health as gotten bad your premiums will be much higher. Also, consider that prices of Term insurance have been going down so if you were to switch you might have the opportunity to get the same amount of coverage that you currently have at a lower price.
Posted: Tue Nov 18, 2008 1:36 am Post subject: insurance
I do have a question about your decision, to change policies, PLASTICMIND. Did this policy just not 'work' for you? Remember...the older you get, the more difficult it is to find 'decent' Life Insurance. It's almost sound like you want to 're-finance' (lack of a better word) to ANOTHER policy, that has the same rates. I'm curious about this, too......would the other policy be more beneficial? What ways?
If you already own a life insurance policy or annuity, you should think twice if someone suggests that you replace it - especially if you have had the policy for a long time. That doesn't mean you should never replace a policy, but you should think carefully before making that choice. To help protect your interests, insurance companies and agents in California must follow certain requirements when you replace a policy or annuity.
What is Considered a "Replacement?"
If you are buying a new policy, under California law, you are "replacing" your current policy if you:
let it lapse, or forfeit, surrender or terminate it; convert it to a reduced paid-up policy, continue as extended term insurance, or otherwise reduce in value by use of nonforfeiture benefits or other policy values; amend it to reduce benefits or terms; have your policy or annuity reissued with a reduction of cash value; or pledge it as collateral or take a loan against the policy for more than 25% of the loan value.
Which Policies Apply?
All life insurance and annuity replacements must comply with California's replacement laws except:
credit life insurance policies; group life insurance and annuity policies;
life insurance that is issued in connection with a pension; contracts that are registered with the Securities and Exchange Commission (SEC), such as variable life insurance policies and variable annuities; non-convertible term life insurance policies that will expire in five years or cannot be renewed; life insurance or annuity policies where the replacing insurer is the same company or under common ownership; and, if the total cash surrender value is less than $500 and the face amount of the policy is less than $5000.
Before You Consider Giving Up Your Current Policy
Make sure you are still insurable. Check any medical or other qualification requirements the new company may have. You don't want to give up your current policy only to find out you are not insurable with the new company.
Understand that there may be no advantage to replacing a life insurance policy or annuity with another life policy or annuity because it may be years before the cash value in the new policy reaches the level in your current policy.
Make sure the new policy has the same provisions as your old policy. Many times, older policies have good features that aren't offered in newer policies, such as low interest rates for loans.
Understand that you may have to satisfy limits in your new policy that have already been satisfied under your current policy. For example, a life insurance policy or annuity has a two-year "incontestable" clause. That means after the policy has been in force for two years, the insurance company must, by law, pay a death claim even if there were misrepresentations in obtaining coverage, unless fraud can be proven.
With a new policy, the two-year incontestable clause begins all over again.
Remember that you are older now than you were when you bought your current policy. A new policy will likely cost you more because of your age.
Tell your current agent or insurance company that you are thinking of switching policies. They may be able to match or beat the offer with their own new or updated products.
When Talking to an Agent or Company about Replacement
Call the Department of Insurance to make sure the new insurance agent and company are licensed to do business in California. Ask if any complaints have been filed against them.
Make sure the application contains truthful statements about your health conditions. Don't leave information off the application, even if the agent suggests it. Misrepresentations or omissions on the application could jeopardize your coverage. Your signature on the application means you have read and agree with the information on the application.
Make sure the application clearly states that you intend to replace your existing insurance policy. If the agent or company knows that you intend to replace your existing policy, they must give you a copy of a "Notice Regarding the Replacement of Life Insurance or Annuity." This notice gives you advice to think about before switching policies or annuities.
If you are buying the new policy from an agent, he or she must give you a copy of the notice at the time of the sale. If you are buying the new policy directly from a company, the new company must: 1) ask you for a list of the policies you intend to replace and the names of your current insurers; and 2) mail you a copy of the notice within three (3) days of receiving your application.
The new company must also send a "Notice of Proposed Replacement of Life Insurance or Annuity" to your existing insurer stating that you are replacing your existing policy. The notice must contain your name and address, your existing insurance company's name and address, your existing contract number and the agent's signature acknowledging that you intend to replace your current policy or annuity.
When You Receive Your New Replacement Policy
Read it carefully. The application will be attached to the policy. Make sure there are no changes in the information you gave on the application.
If you do not understand the policy, ask the agent or company for an explanation. No agent can change policy wording, so be suspicious of any agent who makes statements contrary to what is stated in your policy.
If you find mistakes or decide that you do not want the replacement policy, you have 30 days from the date it was delivered to you to return it to the company for a full refund of premiums. Keep the envelope so you have proof of the date the new policy was mailed to you. _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
