Sometimes, a little change can be a good thing—especially when it comes to an effective, valuable, and fitting life insurance policy. All it takes is a few tweaks to your current policy or a change to a better policy to save you money and protect those you love the most.4
However, changing life insurance policies isn’t always easy. In this blog, the Munster life insurance experts at Gutierrez Family Agency will give you a few reasons why it might be better to hold tight and stick with your current policy. Sometimes, the best way to save money is to stand pat.
Before you change your life insurance…
Let’s talk about the reasons why you might want to stick with your current policy. Changing policies can come with a bit of risk and red tape, depending your age and your current policy’s restrictions. The better understanding that you have of your policy and your circumstances, the smoother your transition to a new policy will be.
Keep the life insurance medical exam in mind.
If you signed up for a life insurance policy years and years ago, you might’ve passed your medical evaluation with flying colors. But years and years later, there’s a good chance you’re not as healthy as you used to be—and that could cause some problems if you’re trying to get a new life insurance policy.
It’s a big risk to have your health reevaluated for a new plan—if your doctor finds any new, pre-existing conditions, your policy qualifications could change and your rates could spike. This could put you in a tricky position as far as financial risk goes—do you bet on yourself and your health in order to score a cheaper policy? Or do you stick it out with your current plan because you’re afraid you might have a preexisting condition in your liver or your colon? Unless your current policy has become outrageously expensive, it might be worth standing pat on your current plan so you don’t hit a rate spike because of an unexpected health problem.
Note financial implications of changing your policy.
When you give up your current life insurance policy for a new one, there are going to be financial consequences to some degree. Maybe you’ll have to pay surrender fees to ditch your old policy, or maybe there will be tax consequences for a policy switch. Whatever the case, understand the costs and fees that come with switching policies so you’re financially prepared for the road ahead.
We get it—this is easier said than done. Some life insurance agents will actively try to change the insurance policies of their customers in order to get more commision (known as “churning” in the industry)—but this is the most mild of insurance policy scams. Many sneaky insurance agents will offer too-good-to-be-true policies, disadvantageous contracts, and strange requests, like asking you to not tell your relatives that you’re switching life insurance policies. Some life insurance will even go to great lengths to trash-talk other insurance agents and agencies—this is the lowest of the low in the insurance world, and is very unprofessional and suspect.
If you’re concerned about the behavior or the legitimacy of your current or prospective life insurance agent, there are many steps you can take to protect yourself and other members of the general public. First, you can contact the National Association of Insurance Commissioners to find out if your life insurance agent is properly licensed and certified. You can also contact your state insurance commisioner’s office to report and suspect, unethical, or illegal behavior from your insurance agent. These agencies are not affiliated with any life insurance agents or agencies, so they’re an impartial and objective resource for policing improper agent behavior.
Talk to The Munster Life Insurance Experts
Gutierrez Family Agency is a trusted insurance firm for all kinds of insurance, including life insurance, car insurance, homeowner’s insurance, and a variety of other insurance policies that can protect your family and your future. We’re here to protect the Munster and Hammond communities because we’re a part of the Munster and Hammond communities—we’re your friends and your neighbors, and we’re here to make our place in Indiana safer and more prosperous for everyone.
If you’re in need of a life insurance policy, want to learn about your current policy, or are considering changing up your policy, we’re happy to help. Protect your family and your future—schedule an appointment with Gutierrez Family Agency today.