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