Should we replace our current life insurance or add supplemental life insurance?
We currently have life insurance but are not sure if we are getting the most for what we are paying. Are there hidden costs for replacing our current life insurance with what we feel is a better option? Or should we look for adding supplemental life insurance instead?
At first glance, that question stopped me. Here is why. Replacing current coverage means that you found something that would solve a problem that the current coverage does not solve, and that is a plan type or face amount or length of coverage kind of thing. Which of those things is THE THING is not discernible from the question. Adding supplemental coverage sounds like you want to add on to the existing coverage because you need simply need more coverage than you have now. Here is the best suggestion that I can offer. Talk to someone, explain what is driving your "should we" question, and let their response inform you better than it can b e addressed here. Too much is left unknown for any professional to suggest a path that serves you well. Got a few minutes? Call me at the number on my profile, and I will at the very least hear your complete question and give you a complete answer.
Kirby at Term.com and LifeInsuranceToday.US | 08.02.16 @ 17:37
Hello Trish. I failed to answer the rest of your question so I will do that here. Hidden costs: usually no, there are not hidden costs since what you purchase is a contract and it is heavily regulated, transparent, and is written in your policy. When you replace life insurance you stop paying for one policy and start paying for another. If the existing coverage is cash value coverage then there may be a surrender charge, but it is not hidden; it is shown in your policy. When you speak with someone who is offering the new coverage, ask the question "are there costs which are not apparent that exist in this policy?" and when you get the policy, read through it with them. You have a 30 day free look period, so you may want to use it - post sale - to sit and discover what you have without a downside. Keep the existing coverage for 30 more days while you do it in order to add a bit of insurance to the change if you are unsure at the front end. Hope that helps.
| 08.02.16 @ 18:06