Should you switch term life insurance companies every couple of years to save on premiums?

Answer 1

You should review your life insurance needs every few years including when a major life event occurs (eg marriage, having children, changing jobs, etc).

When you do the assessment, you can look at quotes to see if a new policy might be better for you based on your needs. This includes looking at the death benefit amount, the premium, the guarantees, cash value, and more.

If the pros of switching outweigh the cons, then you should consider switching. Keep in mind that you have to qualify for the new policy by underwriting and so if your health and lifestyle has declined, you may not be able to qualify at standard rates.

Answer 2

The idea to save on premiums by switching over to various term life insurance companies is totally childish and counter productive. Continuation with a single term insurance service provider is what is advised. With each switch over, there is the question of premium acceleration as age increases, followed by medical check ups to the satisfaction of the Insurance Company. It is a fact that premiums on term insurance or whole life policy is quite low compared to traditional risk coverage policies and any attempt to gain in premium by periodic switch overs will have a negative effect as a whole.

Answer 3

While the use of the term "childish" is inappropriate, what you do have to be concerned with is that since the time of issue of your present policy, you have aged. You do not state the duration of the present term policy (such as annual, 5-year level premium, etc.). If you are in good health (defined as meeting or exceeding the underwriting guidelines of major, reputable issuers of term life insurance), and can afford the resulting premium, it may behoove you to look into 15 or 20 year level term coverage. If you qualify, can afford the premium and have a need for life insurance for that duration (for example, if you are raising a young family). That sort of coverage will give you predictability of premium expense over an extended period. Remember, though, that no cash value accumulates, so that if you miss a premium, the insurance will expire within 30 days, you will lose premiums paid to date and will be without coverage.