Switching of term life insurance provider

Hey! Has your health status changed since you last applied? If no, it will make sense to switch provided your coverage is the same for the new one at a lower cost. The other thing to consider if the renewable terms, do check if the renewable terms are the same, some plans are only renewable for 5 years at the same premium rates and after that it will increase by quite a lot. Hope this helps!

Hi anon,

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Since death coverage (and to a large extent, TPD coverage) is the same across most insurers, switching may offer you the chance to get the same coverage for lower premiums. You'll save some monies in the process and can get CI coverage with your savings (what kind of CI plan is good for you, will be another topic entirely)

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However, some of the disadvantages associated with the switching include the following:

• You may not be insurable at standard terms if your health has declined
• You may have to pay a different premium (but in this case, lower, so that's a good thing)
• You will have to go through the underwriting process/waiting period again (i.e. you should not terminate your current plan with Pru until you know you can get your coverage with the new company on similar terms with lower premiums)

I'm sorry, but I'm just wondering why you didn't ask your advisor about these during the discussion? It's a question that any advisor would be able to answer.