Should I Change From One Life Insurance Company to the Next Every Couple of Years to Save on Premiums?
Almost everyone would like to have more savings on their life insurance policies. But is it better to switch from one insurance company to the next every so often?
There are varying opinions on this matter. Some insurance agents will definitely say yes because this is will give them the opportunity to promote their recent insurance policy plan. But what are the risks that you may get into if you change insurance policy frequently?
One of the issues behind frequent changes in your life insurance company is the risk of undergoing underwriting assessment. Underwriting assessment is a standard procedure in most insurance companies wherein the insurer requires that the applicant undergo a few medical check-up; accomplish medical history forms and other pertinent documents. This is absolutely necessary because it will provide the insurer sufficient basis in calculating the rate of premium which you need to pay.
Underwriting assessment highlights health, professional and social risks which befall an applicant. It can be quite costly and make take a longer time to accomplish because of the series of investigation which the insurance company needs to perform. There may be no serious issues if nothing bad happens to you while you wait for the result of the underwriting assessment; but in case you do encounter an unfortunate accident, then it would be disastrous to you and your family.
An Alternative Solution to Frequent Changes in Insurance Company
Instead of switching from one insurance company to another, it you follow the following preliminary investigations and recommendations:
1. Investigate the credibility of the company.
2. Compare different insurance quotes in the market.
3. Carefully examine the policy which you are purchasing.
4. Check the quality of service and investment performance of the insurance company.
5. List down all of your needs, preferences and expectations and evaluate if the surety company can provide all of these things.
6. Be open to all the other opportunities that you may have.
7. Negotiate the terms with the insurer.
Do all of these preliminaries and when you have chosen a particular company that is worthy, stick to it.
Company loyalty will provide greater benefits in the future especially if you have followed the above recommendation before purchasing a policy. If you have indeed purchased a policy after investigating the credibility of the insurance company then there is no way you should doubt its integrity. Remember that the amount of premium that you need to pay increases as your age increases. The health risks also add in number as you age. There may be new complications that may reflect on your medical diagnosis which can also cause your premium to rise. Unless the insurance company that you have chosen has gone to bankruptcy, there is no reason why you should constantly change your insurance policy. Do not be tempted by the latest offers that insurance agents may give you. It may only end up as their form of propaganda so you can convert your premium to their company when in fact the present one you have may be the best in the market already.