I see ads for life insurance at much lower rates than the policy I am presently paying for. Should I discontinue my current policy and buy a new lower cost policy?
Term life insurance rates tend to be very competitive and have seen declines over the years. If you find that your needs for insurance could be met by a new, lower-cost term life policy, you might consider dropping the older policy and getting a new lower-cost policy. However, before you do this, you should make sure that the newer policy has the appropriate coverage because a policy with different features might be lower-cost but not have the type of coverage you require. Also, keep in mind that you are older than when you bought the original policy, and your health status may have changed. This could be an important factor because the new policy will have a new contestable period. “Contestable period” is insurance jargon for the time period when something in your application, such as the state of your health or your age, might be used to deny a claim. It is typically in effect for a year or two after the time a policy is issued. When you buy a new term life policy, you will be subjec
