You can replace one life insurance company for another, assuming you are healthy enough to secure coverage. If you have gains in your policy cash values or you want to carry forward the basis, you need to use a 1035 exchange to accomplish the transfer or “switch” as you stated. Make sure the switch is in your best interest before moving forward.
Some companies offer persons with life insurance that has been rated Standard or better, the chance to switch their Term life insurance to that company without any health requirements. Otherwise, switching coverage usually involves applying for a new policy.
This can be a good thing if your original policy was overpriced, or you lost weight or quit smoking or something that would reduce the rate on a new policy, or if you wanted to lock the premium in for a longer time than your current policy did.
If your current policy is a Whole or Universal Life policy, you need to contact an agent to find what would be lost by switching, or what other options exist that may be more favorable to you.
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This can be a good thing if your original policy was overpriced, or you lost weight or quit smoking or something that would reduce the rate on a new policy, or if you wanted to lock the premium in for a longer time than your current policy did.
If your current policy is a Whole or Universal Life policy, you need to contact an agent to find what would be lost by switching, or what other options exist that may be more favorable to you.