There can be multiple reasons why someone would want to change their life insurance policy. Perhaps their needs have changed, they’re not happy with their current provider, or their financial situation has changed. No matter the reason, it’s important to be well informed before making any decisions about changing your life insurance policy. William Schantz of mafllc will now help you do some research.
7 Things to Know Before Changing Your Life Insurance Policy
Life Insurance Medical Exam
One of the first things you’ll need to do when changing your life insurance policy is to take a medical exam. The exam is important because it provides the insurance company with information about your health and gives them an idea of how long you are likely to live.
Compare Various Life Insurance Policies in the Market
Not all life insurance policies are created equal, and it’s important to compare various policies before making a decision. There are many factors to consider, such as the death benefit, premium, and riders. Life insurance policies are of two types; term life insurance and whole life insurance. It’s important to choose the right policy for your needs.
Life Insurance Policy Waiting Period
As per William Schantz, most life insurance policies have a waiting period of two years. This means that if you die within the first two years of your policy, your beneficiaries will not receive any death benefits. The waiting period is in place to prevent people from taking out life insurance policies and then immediately filing a claim. You may also need to do your research on suicide provision and the contestable period. This is because if you die by suicide within the first two years of your policy, your beneficiaries will not receive any death benefits.
Consider the Possibility of Converting Existing Policy
If you have an existing life insurance policy, you may be able to convert it to a new policy without having to take a medical exam. This is called a “conversion privilege.” You may not even need to change your life insurance company. It is also possible that you add another policy as a supplement to your existing one.
Life Insurance Agent’s License
In order to sell life insurance, agents must be licensed in the state where they plan to do business. The licensing process is regulated by each state, but generally, agents must pass an exam and complete a training course. According to William Schantz, some states also require that agents participate in continuing education courses.
Check If You Have Life Insurance Through Work
Some employers offer life insurance as a benefit to their employees. If you have life insurance through your job, you may not need to purchase an additional policy. However, it’s important to check the details of your policy to see if it meets your needs. For example, some employer-provided policies only pay out a death benefit if you die while you are employed.
Read the Fine Print
It’s important to read the fine print of any life insurance policy before signing on the dotted line. This is because there may be some exclusions that you are not aware of. For example, some policies will not pay out a death benefit if you die as a result of suicide or an accident.
Changing your life insurance policy is a big decision, and it’s essential to do your research before making a change. William Schantz has given a brief but comprehensive guide on what you should know before you go out to change your life insurance policy.