Most of us don’t enjoy the administrative burden of switching providers regardless of whether it’s an account at a bank, a mobile phone company, or utility services such as electricity and gas. However, switching your life insurance policy may be simpler than you imagine and may prove beneficial in the long run. If you’re thinking about the possibility of switching, but are not sure, check out our guide to changing life insurance policies.
Any person is entitled to switch your life insurance carrier at any point however there’s no guarantee that your application will be accepted by the new company. So, it is important to warrant that the change in your coverage for life is the right choice for you. Also, make sure that you have the new policy in place prior to cancelling the existing one. If you’re certain you’d like to get on with by changing your the life insurance company then you may or take out a brand top-up policy that is new with an alternative company, or to take out a new policy entirely.
How do I alter my the life insurance policy?
If’ sticking with what you think we know is sometimes the best option but here’s the reason the reasons why a life insurance policy can be advantageous:
- Reduce costs It is possible to save money by shopping around to find the perfect price and obtaining quotes from various insurance companies.
- Cover more If your life circumstances have changed, and your family has become parents or earned a job promotion for instance the policy you have currently in place may not provide the coverage you require.
- One-life insurance – If you’re one of your partners, you may prefer to get two life insurance policies that will each pay out in the event that the insured died with a legitimate claim filed.
- Insurance for life jointly You could also decide to get an insurance policy for joint life which will typically pay upon dying of the insured person, rather than two separate policies. This is a possibility when you share the same security requirements that your partner does such as to cover a joint obligation such as a loan, or mortgage. For more information, refer to our article on the distinctions between joint and single life insurance .
How can you transfer or change your life insurance plan to a different company
If you decide to switch life insurance providers then you must apply for coverage. The insurer will evaluate your application and determine whether they will be able to provide the policy and which conditions. Based on the information you provide the company might require more medical information before granting you a plan, although it is possible to get life insurance without medical.
Of of course, changing or rescinding the life insurance policy doesn’t mean you have to be the sole opportunity. As we’ve discussed, you might want to consider keeping your current policy and then topping it up’ by purchasing another one. Your current insurance provider may be able of changing the policy to reflect changing circumstances.
Be aware that the terms of any new policy will be decided by the insurer and will be determined by what’s covered, along with your health, age and current circumstances. In some instances it’s excellent to alter an existing policy whenever is possible.
Things to consider when you are changing your life insurance policies
It is important to conduct your research prior to switching insurance providers. Here are a few important things to be aware of:
- Make sure that the new insurer can be registered under the Financial Services Compensation Scheme (FSCS) to assure that, if the business fails and is unable to pay its claims the FSCS can intervene to compensate the company.
- Life insurance generally is less expensive as you age, therefore switching your life insurance policy could cause higher rates that your initial policy. This is due to the fact that you’ll get older, and more susceptible to health-related risks. If your health situation has changed however, it’s not for sure that you’ll receive a new health insurance plan.
- Don’t forget to end your current life insurance policy prior to the time that the new policy is in place because your coverage will expire at the time you cancel it and you’ll be with no insurance.
You can change the terms of the life insurance policy you have in place?
There are always surprises and there could be a time in which you’ll need to boost your coverage or modify your existing life insurance policy instead of taking out the new policy or switch providers. Through Legal & General you may be able to improve your coverage without requiring additional medical information regarding specific life events.
What can I do to boost the duration the life insurance coverage?
As an Legal & General policyholder you may also request some other adjustments, such as the duration the life insurance coverage. For instance, if purchased a home or refinanced your mortgage or refinanced, you might want to extend the term of your life insurance to cover the mortgage payments. Learn more about getting life insurance to cover mortgages. Terms and conditions apply. Be aware that these changes may alter the amount of premium you pay. We must evaluate the change request in light of your current situation at the time of. Find out more information about making modifications on your insurance policies for life.
Can I change my life insurance beneficiary?
If you are writing the life insurance plan through a the trust structure, you have situations where the beneficiaries could be altered. For instance, if have set up an Discretionary Trust which grants your trustees the right of deciding who are eligible to receive the lump sum, or who are eligible to receive the lump amount. However, if you set up an Absolute/Bare Trust, the designated beneficiaries can’t be changed. Find out more about transferring beneficiary names in the guide on the process of putting life insurance into trust.
What other modifications could be made to the life insurance policy I have policy?
There are many extra options to apply to the life insurance plan. For instance, you could request the removal of a person’s name from the joint life insurance policy or alter the method the premiums are paid (monthly or every year). The terms and conditions are applicable. Be aware that these changes may impact the amount of premiums you pay. We must evaluate the change request in light of your situation at the time of request. Find out more information about making modifications in your policy for insurance on life.