When is a good idea to transfer a life insurance policy to a new one?
Here are some reasons why you may want to transfer your old policy into a new one: - You found a cheaper policy - You changed your financial strategy - You found a policy that better suits your needs (i.e. has healthcare riders you want to cover or better cash accumulation return, etc.) Some factors to consider before transferring your life insurance policy: - Will the added features (or cash returns) be worth sacrificing any cash value that is locked in the “surrender period”? You will be giving up that value if you transfer to a new policy (unless you are transferring into a new policy that is owned by the same life insurance company but just different policy types). - How much will the premiums increase since you are purchasing at a later age? - You will restart a new surrender period, meaning your investment value will be locked in for another 10-15 years before accessing 100% of the value inside. Overall, make sure you read all the fine print before deciding on the purchase to transfer your old life insurance policy to a new one. The newer life insurance policies may offer more attractive benefits but it’s also important to know what you’re getting into and understand your new life insurance policy in detail.
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