How to Increase Term Insurance
Term life insurance provides a finacial saftety net for families in the event of an unexpected death. It is less expensive than whole or universal life insurance. If living expenses increase, there may be need to adjust the amount of term life insurance . Increasing the policy amount can be as easy as a simple phone call.
- Phone the agent who issued the original term life insurance policy. Ask the agent what is required to increase the policy amount. When speaking with the agent be sure to tell all the terms and conditions are to remain in place and only the dollar amount of the policy is to increase.
- Ask for a quote from your agent to find out what the new policy premium will be.
- Phone other insurance companies to receive additional quotes. There may be a cost advantage to receiving quotes from other companies. Compare the policy terms and conditions to see if they are of equal value to your current term life insurance provider. Some less expensive policies have clauses or restrictions. Read the fine print, and ask questions if needed.
- If continuing with your current life insurance provider, note the day of policy change, the name of the agent you spoke with, and the new premium amount. Policy changes typically go into effect almost immediately. However, it is always a good idea to have notes available in case there is an error.
- If changing insurance companies, be sure there are no lapses in coverage. Cancel the old insurance policy the day the new policy goes into effect.