Renewing Life Insurance
Many people that have life insurance do not think much about it until they get a notice from their insurer that their policy is terminating, or the price is increasing. If the insurance is a period-certain life insurance policy, that is one that has a level price for ten or twenty years, there two things that might happen at the end of the term. First, after the ten or twenty-year period, the life insurance may cease to exist. Or, some period-certain life insurance policies do offer the chance to continue the coverage at a much higher rate.
Most of the time, life insurance companies let their customers know about future changes to their life insurance policy a year to sixty days before a significant change in premium or termination. When people get a notice of a substantial change to their life insurance, the first question that they need to ask themselves is do they still need the life insurance. If the answer is no, it is easy just to let the notice pass and discontinue the insurance coverage.
However, what many, many people find is that even though the original reason they bought the life insurance may have passed, now they have new reasons to need life insurance. There may be loans, the expectation of final funeral expenses or health care cost that will need to be paid. So, in many situations, the need for life insurance still exists.
If there is a renewed need for life insurance, the next question to consider is how much is needed. An easy way to figure out how much life insurance is required is to use a life insurance needs calculator. You can find a free calculator at http://www.advice4lifeinsurance.com/calculator. After calculating how much life insurance is necessary, the next question is what type of life insurance to buy. For most middle-aged people, either senior life insurance or term life insurance will work. To see the cost of senior life insurance, use the quote generator on the website listed above or visit the home page for a broader term life insurance quote generator.
If there is a continuing need for life insurance, a primary reason to keep existing life insurance even if it has a more significant premium is health concerns. Anyone concerned that their poor health will affect getting new life insurance should consider all their options. If the cost is going up, ask the life insurance company if they will allow the guaranteed purchase of a lower level of death benefit. For example, if a person has a $500,000 policy that will be increasing significantly in price, ask if a $100,000 policy could be substituted at the renewal. Furthermore, despite the concern over poor health, shop for new policies. There may be companies that offer a guaranteed insurability option that works better than renewing an existing policy. For a list of companies that provide guaranteed issue life insurance and their cost visit http://www.advice4lifeinsurance.com/senior-life-insurance
If you are middle-age and shopping for life insurance, be sure that you do not cancel any life insurance until the new life insurance is in place. Make sure that you tell any insurance company that you apply to, that you intend to change policies and why. Moreover, do not apply to different insurance companies at the same time without telling each insurance company. If you do not tell other insurance companies that you are applying to multiple companies they may decline you because you were not upfront about your intentions.
For middle-aged people, making changes to life insurance policies can take time. It may take longer to alter the level of coverage than to apply for a new policy. However, if you need to keep your current policy, be sure to give yourself and the insurance company ample time to make any modifications.
Even though life’s circumstances may have changed, health may have declined, and insurance rates may have changed the piece of mind that life insurance brings has not changed. Anyone that buys life insurance buys it because they love someone.
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