Life Insurance Needs Calculator
Having a life insurance policy is not necessarily a case of “’Til Death Do Us Part.” If you want to drop an unwanted life insurance policy or switch plans, you can. And there are several options to do this.
Having life insurance is a good idea as a way to protect loved ones in the event you are unable to do so. But sometimes individuals purchase life insurance once and life changes and circumstances may necessitate a change.
The ideal first step is to speak with the company your insurance is with and make any desired adjustments. But in some cases, policy owners may feel they cannot afford a different plan from what they chose originally.
Policy owners can use of these methods to end an unwanted policy: lapse, surrender for cash value, reduced paid-up, extended term, 1035 exchange for an annuity and 1035 exchange for a different life insurance policy. Another option has been recently introduced according to new article posted on Yahoo! Finance. It is called a life settlement. A life settlement is when a life insurance policy is sold to an individual or entity other than the company that issued the policy for an amount that exceeds the policy’s cash surrender value but is less than the net death benefit. It is different from the other six options in that ownership of the policy is transferred to another person or entity.
While it is never advised to go without life insurance, companies do realize your goals and purposes for a policy could change. The best plan of action is to start with how your existing plan could change to be what you want. But, cost is certainly a driving factor too, and so transferring a policy to another policy is certainly within allowed limits.
At Compass Quote, we want to help you find the right insurance for your needs…both for today and into the future. Our experienced and licensed agents can help lead you to the right plan. Check out our website for some inexpensive life insurance secrets or feel free to call us on how to get started.
Albert is a term life insurance expert and provides great insight for people looking to get the most out of their life insurance policy.
