There may be several reasons that you could consider when looking at changing your policy or what you are covered for.
1. You could improve your cover
There are two major reasons you might be better off making the switch:
If the new policy offers more comprehensive coverage for a similar price, or
If the new policy provides very similar coverage for a more competitive price.
This could happen if your insurer hasn’t been regularly upgrading your existing policy’s benefits. If that’s the case, significant coverage gaps can start to emerge between the existing policy and newer policies on the market. This can also happen if your existing policy has become relatively expensive compared to others on the market.
2. Your financial needs have changed
If your personal circumstances have changed, you could find that your existing policy’s benefits no longer meet your needs. In this case, you can choose to purchase extra benefits from an additional insurer. Or, if you’d rather have the convenience of all your benefits in one policy, you could choose to move the entire policy to a new company. But before making a decision, be sure to check whether the new benefits you need are available through your existing life insurance company. If they’re available – and competitively priced – amending your existing policy may be the better option.
3. Your health has improved
If you believe your health has improved, but your existing product provider won’t review your premium loadings or exclusions, we might suggest switching to a provider who’s willing to offer you better terms.
If you’re not sure whether you should change or not we suggest asking us these key questions:
How are we planning to protect your underwriting guarantee during the replacement process?
Why don’t we think you can get what you need by amending your existing policy?
What existing policy benefits (if any) do you stand to lose by moving to a new policy?
What new benefits will the new policy give you, that your existing policy doesn’t?
If your personal circumstances have changed, you could find that your existing policy’s benefits no longer meet your needs. In this case, you can choose to purchase extra benefits from an additional insurer. Or, if you’d rather have the convenience of all your benefits in one policy, you could choose to move the entire policy to a new company.
But before making a decision, be sure to check whether the new benefits you need are available through your existing life insurance company. If they’re available – and competitively priced – amending your existing policy may be the better option.
There are a number of reasons why we might recommend replacing your existing policy. Importantly, our company policy is that we will only do that if you will significantly benefit from change. In addition to this the Code of Ethics (which we adhere to) says that we must put the client first. We don't need a regulation to tell us that - we firmly believe that the needs and requirements of our clients will always be the most important part of our dealings with them.
But, even so,before taking any action you must be completely sure that it is the right decision for you.
Comments