Serving over 200 companies and more than 2000 families since 1988

2882 Sand Hill Rd. Ste. 119 - Menlo Park, CA 94025 - (650) 854-8963 - (800) 564-4476
Pleasure Point - (831) 464-9600

Is Your Life Insurance Policy Still Right For You?

Posted By on Feb 25, 2016 | 0 comments


You want your family to be protected under any circumstances, which is why you probably already have a life insurance policy. To make sure you got the most complete coverage, you completed a needs assessment, researched the different types of life insurance, and finally chose one that offered you peace of mind.

You did everything just right. But over time, your needs might have changed, and now you’re wondering if that old life insurance policy is still a good fit for you. Are you stuck with it, or can you upgrade to a better policy that provides for your new needs?

We have good news: You can exchange your old life insurance policy for a new one. In fact, people do this all the time, for many different reasons:

  • to achieve a lower premium
  • to obtain more coverage for your family – you now have more dependents, or your needs have changed in some other way
  • to switch life insurance providers – you’re concerned about, or dissatisfied with, some aspect of your current provider
  • to access additional benefits or add riders that are not available on your current policy
  • to get a different type of life insurance policy altogether – for example, you want to exchange a term life for a whole life policy

Exchanging an outdated life insurance policy is not only possible; it’s often recommended! We recommend that everyone perform a new needs analysis every two to three years anyway, because the factors that determine your needs can change greatly over time. If your needs analysis demonstrates that your old policy is still a good fit, then you have earned greater peace of mind in the time frame of one short appointment. Regularly reviewing your needs is the best way to ensure that your family remains protected by the appropriate insurance coverage.

However, if you discover that you need a different life insurance policy, we can help you use a 1035 exchange to make the transition. This maneuver can be tricky, but when performed correctly you can change plans or providers without becoming vulnerable to tax penalties.
Your first step is to call us for an appointment, and we can go from there. Once we perform your needs assessment together, we can advise you on the different types of life insurance coverage available to you.

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