Insurance
Life Insurance

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

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Wiki User
2014-11-04 00:47:21

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.

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Wiki User
2012-08-03 12:48:52

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.


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