WHAT IS LIFE INSURANCE REPLACEMENT?

Life insurance replacement occurs when an insurance agent convinces you to replace your existing life insurance policy with a new one. Moreover, this can happen when looking for a better policy or a more affordable premium. However, replacing your life insurance policy is more complex than signing up for a new one.

In fact, all states require you to sign replacement forms whenever money from one life insurance policy is used to buy or fund another policy. The forms will outline the pros and cons of the new life insurance policy and how it differs from your existing policy. Therefore, this ensures you fully understand the consequences of replacing your old life insurance policy with a new one.

The insurance agent must notify your old company if the new policy is with a different life insurance company. Importantly, this allows the old life insurance company a chance to persuade you not to switch. They may offer you incentives such as lower premiums, better coverage, or other benefits to retain your business.

Carefully considering all of your options before replacing your life insurance policy is essential. While a new life insurance policy may seem more attractive, it may only sometimes be the best choice for you. You should evaluate the coverage, premiums, and other factors of the new life insurance policy against your existing policy to make an informed decision. Your insurance agent can answer any question and guide you through the process of replacing your policy.

Instead of replacing your life insurance policy, you can have the option to sell the policy through a process called a life settlement. A life settlement involves selling your life insurance policy in exchange for a lump sum payment.

Selling your life insurance policy using a life settlement auction-based process can be a good option if you no longer need the coverage or struggle to keep up with the premiums. The lump sum payment can be used to pay for medical expenses, long-term care, or other expenses.

If you want to determine if you or your loved one qualifies for a life settlement, please complete our quick Life Settlement Qualifier. Our process is confidential, and there is no obligation at any time. For more information about Welcome Funds, please visit www.welcomefunds.com or call 877.227.4484.

Life Insurance Policy Replacement