Do you have diabetes and want to replace your existing insurance policy?
Before you head out and replace your old insurance policy, there are some important facts you should know beforehand.
Do You Have A Conversion Option?
Before you replace your existing policy you might want to check out whether you have a conversion option in your current policy.
Going this route with your current company might make better sense than replacing your policy altogether.
Many people think that when you buy term life insurance, the policy lapses.
This is not true, as you have coverage until age 95, and the insurance company will simply re-calculate the premium of a new term and will notify you accordingly as to what that will be before it lapses.
The bad news is that the cost of the new term policy will be significantly higher, but if you have a conversion option, there’s good news.
Many term life policies allow you to convert your term insurance into any permanent insurance policy such as whole life or universal life which might be better for your individual circumstances.
The good news is that you can often do so without proof of insurability even though your health has deteriorated such as with the onset of Type 2 Diabetes for example.
Also, the premiums may even be more affordable than getting a new term policy.
Be careful though, the conversion option varies from company to company and some conversion options are not advantageous.
Why Should I Replace My Existing Life Insurance Policy
- Term Insurance is About to Expire
- Financial Rating of your Life Insurance Has Been Downgraded
- Your Life Insurance Needs Have Changed
- Your Health Has Improved
Important Facts You Need to Know When Replacing Your Policy
- You will have to tell your agent of the replacement and outline the policy details on your new application.
- The new company you submitted your new application will likely have to advise your old company in writing about the changes.
- Your old company will likely send you a letter trying to convince you not to change.
Reasons You Might Not Want To Replace Your Policy
There are two main reasons you might not want to change policies with diabetes:
Surrender Charges
If you have a whole life policy or universal policy you may have to “surrender charges”. As defined by Investopedia.com, surrender charge is a fee levied on a life insurance policyholder upon cancellation of their life insurance policy. The fee is used to cover the costs of keeping the insurance policy on the insurance provider’s books. A surrender charge is also known as a “surrender fee.”
Contestable Period
Your new policy will likely contain a new two-year “contestable period”. This means they will have the right to thoroughly investigate the circumstances of your death and if you have fraudulently answered any of the questions, your claim could be denied, so always be honest.
Beware Of The 2 Year Contestability Period On A Replacement Policy
If for any reason, you have fraudulently or mistakenly answered any of the questions they asked about your health incorrectly; your claim could be denied.
It is extremely vital you always answer all questions about health correctly and honestly because they will find out if you were being untruthful especially during that 2 year contestability period.
If you’re not sure about one or more of the medical questions they ask, talk to your agent or make an appointment to see your doctor to help you fill out the questionnaire application.
Always be honest.
How Diabetics Can Save Money
First, we are an independent agency, and that means we have access to 20 life insurance companies.
This allows us to find the lowest priced policy available to you based on your particular health history.
Being an independent agency, we know which companies are more lenient than others when it comes to medical issues such as diabetes.
Our services are available to people who live throughout the U.S., regardless of your age.
We can help you find the best term or whole life insurance, and we are always available to answer any questions you might have.
Real Life Example How We Can Save You Money
We had a guy who came to us with a policy that he had purchased life through his auto insurance agency.
This gentleman was 62 years old and had recently diagnosed with type II Diabetes, which is becoming very prevalent and more frequent.
He was doing well, following doctor’s orders and had his diabetes under good control. We got cracking and did some research.
It wasn’t too long before we got back to him and told we got him a preferred offer. The agency and the company he had used had him rated as being substandard through his auto agency.
Bottom Line – With very little effort, we replaced his existing life insurance policy and saved him over $700 per year.
Take The Time To Find The Best Price And Policy
When you first speak with us, it’s rare we’re not going to give a quote right off the bat. Why?
Because we want to do some in depth research to look at all the options.
Only then will we call you back and give you the lowest priced quotes we could find for the best policy that suits your individual circumstances.
