Coporate Profiles

Canceling Your Current Life Insurance Policy:

If you are thinking about terminating life insurance coverage that you currently have in force, here are some things you should consider.

1. If you decide to replace your policy, donít cancel your old policy until you have received the new one. You then have 20 days to review your new policy and decide if it is what you wanted.
2. It may be costly to replace a policy. Much of what you paid in the early years of the policy was the companyís cost of selling and issuing the policy. You may pay this type of cost again if you buy a new policy.

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3. Ask your tax advisor if dropping your policy could affect your income taxes.
4. If you are older or your health has changed, premiums for the new policy will often be higher. You will not be able to buy a new policy if you are not insurable.
5. You may have valuable rights and benefits in the policy you now have that are not in the new one.
6. You may have valuable rights and benefits in the policy you now have that are not in the new one.
7. At least in the beginning, a new policy may pay no benefits for some causes of death covered in the policy you now have.

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Your exit strategy?

In all cases, if you are thinking of buying a new policy, check with the agent or company that issued you the one you have now. When you bought your old policy, you may have seen an illustration of the benefits of your policy. Before replacing your policy, ask your agent or company for an updated illustration. Check to see how the policy has performed and what you might expect in the future, based on the amounts the company is paying now.

To assist you in evaluating the proposed and the existing insurance many State's regulations require that the agent advising or recommending replacement:

1. Provide the consumer with a summary of the policy or contract to be issued.
2. There is a twenty-day free look period for you to decide if you want to continue the policy or cancel for a full refund of your premium.
3. Policyholders sometimes control the investment of their cash values in stock, bond, money market or other accounts and bear all the investment risk.
3. The company is required to notify your present company of the pending replacement of Your Current Policy.

Review your life insurance program with your agent or company every few years to keep up with changes in your income and your needs.

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