Changing Life Insurance
For the many people who have made the important decision to buy cost effective Life Insurance because they have decided that isn’t a luxury, it is a necessity for financial security for the future. This is especially true if you’re the main breadwinner or there are members of your family who solely rely on you. So therefore it makes perfect sense to ensure that you have the best cover available.
One of the many questions asked by our customers is: Can I change my Life Insurance if I find better cover elsewhere?
As with all long term protection policies there are a few things to consider, including any potential policy limitations, increased costs and other pitfalls.
In today’s guide we will explore a few of the options including:
Why Do You Want To Change Your Life Insurance Policy?
Can I Change My Life Insurance Company?
Can I Simply Switch My Life Insurance Policy?
Is There An Alternative To Changing My Life Insurance Policy?
Why Do You Want To Change Your Life Insurance Policy?
There are many different reasons why you may to change your Life Insurance policy, including a change in lifestyle or potentially a medical condition. However, the most common reasons why people want to change their Life Insurance policy is because they have moved home or have welcomed a new child into the family. Alternatively as detailed in our helpful guide have you updated your Life Insurance you may review your protection policies as part of your household budget.
All of these are very good reasons to change your policy, but what are the available options?
Speak with your current provider and change the amount of cover you have.
Compare Life Insurance Quotes to find a better deal.
You may want to cash in the value of your policy where applicable.
Some Life Insurance providers will allow you to increase or decrease your level of protective cover. However, it is very important to note that not all Life Insurance providers offer this facility to their customers.
If your Life Insurer does allow you to change the level of cover you have, will mean that your monthly premiums will increase/decrease. It is also worth noting that there are some Life Insurance providers who will insist on a new health check.
By discussing your options with an FCA regulated broker, like Life Insurance Cover can help you find the balance of potentially increasing the level of protection with your current provider. Alternatively, by doing a quick Life Insurance quote can help you determine if you can get a better deal by comparing the market of all the Life Insurers.
Can I Change My Life Insurance Company?
The very simple answer is yes, you can change Life Insurance companies and obtain a new Life Cover policy with another provider. However, unlike a motor Insurance policy there are a few major differences to consider before you go ahead and change your Life Insurance policy provider.
Policy Contestable Period: A new Life Insurance policy may have a contestable period, which is usually 2 years, this is a standard clause with most policies from UK Life Cover providers. During the contestable period some claim types including suicide might not be protected by the policy.
Surrender fees: Because Life Insurance is a long term protection policy, some Insurers will charge surrender fees if you switch your Life Insurance policy to another company. This only applies to whole of life insurance policies or over 50s Life Insurance.
Medical check-up: Many of the UK Life Insurance providers will request a health check or medical when a customer takes out a new Life Insurance policy, which may involve writing to your GP or attending a medical. It is worth noting that if your original policy was purchased many years ago and your medical circumstances have changed, your monthly premiums may increase.
Age limitation: Anyone over 18 can apply for a Life Insurance policy, but all UK Life Insurance companies have age limits and policy requirements. This varies between providers and can mean that a policy may lapse earlier than expected. If you are over 50 years old, it might be prudent to either obtain an over 50s policy or obtain a specialist policy.
Can I Simply Switch My Life Insurance Policy?
Unlike switching banks or building societies, unfortunately, you cannot simply switch your Life Insurance policy to another provider.
As previously stated changing your Life Insurance policy can be quite complex. By choosing to surrender a Life Insurance policy with the intention of replacing it with a new one from another provider, you will be asked a series of questions.
The questions that require answers are designed to protect you from fraud or scams, including nefarious agents who regularly change their client’s policies to obtain a commission.
A new Life Insurance provider will want to know:
Your current policy number.
Who your policy is with.
The expiration date of the policy.
If you want to replace your old policy with a new one.
If you are thinking about making changes to your Life Insurance policy, it is very important to do thorough research to avoid any potential pit falls. Alternatively by using an expert FCA regulated broker with the experience to help you, like Life Insurance Cover can help you find the best option available to you.
Is There An Alternative To Changing My Life Insurance Policy?
Instead of completely changing your Life Insurance policy with a new provider, the most popular alternative that most people choose is to keep your current policy and take out an additional policy or ‘top-up’ from another provider, as detailed in our should I buy another Life insurance policy guide. This is a very popular choice with people who find that their family circumstances have changed including families with a higher mortgage or those who have recently had more children.
Where Can I Get Impartial Advice On Changing My Life Insurance?
Fortunately there are many Life Insurance providers who are able to offer exactly the right cover for your individual needs and monthly budget.
By using an FCA regulated broker, like Life Insurance Cover who Compares Life Insurance Quotes from all of the UK providers. You can be reassured that changing your Life Insurance policy or choosing to obtain a further policy could not be easier. Life Insurance Cover is a whole of market broker who is not tied to an individual provider, helping you to find the most cost effective policy and best protection for you and your family for the future.