How to Reduce Term Insurance
Term life insurance provides protection for families in the event of a sudden death. Although tem life insurance is less expensive than whole or universal life insurance; there may be a need to reduce the amount of term insurance due to income restrictions or lack of need. Reducing the policy amount can be as easy as a simple phone call.
- Phone the agent or company who issued the original policy. Ask the agent what is require to decrease the policy's amount. When talking with the agent tell them that all the terms and conditions are to remain in place and only the dollar amount of the policy is to change. Changing the terms and conditions will alter the coverage of the policy.
- Get a quote from your agent to find out what the new policy premium will be.
- Call other companies to receive additional term life insurance quotes for the new amount of coverage. There may be a cost advantage to receive additional quotes from other companies. Be sure to compare the policy terms and conditions to see if they are of equal value to your current term life insurance provider. Not all policies are created equal, so be sure to read each policy carefully before purchasing.
- If continuing with your current provider, make note of 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 take notes and have them available in case there is an error.