Claude Reynolds Insurance Agency Inc. Louisville Insurance

Term life insurance is a necessary policy to be sure your family and loved ones are taken care of if you pass away. Obtaining a policy is significantly easier and cheaper the younger and more healthy you are. For a healthy male in his twenties, a term life insurance could be just a couple hundred bucks a year. However, if that same policy holder accidentally forgets to pay the bill, the policy will terminate and leave more damage behind than expected.

Early Termination Term Life InsuranceThere are several reasons why a term life insurance policy may terminate early. Perhaps there was a loss of income, disability, or other unforeseen circumstances which made it difficult or impossible to pay the bill. If the bill isn’t paid, the policy will eventually be terminated. Leaving absolutely no benefits for family members. Anytime the premium is not paid, regardless of the reason, it can be more difficult to renew that policy at a later date.

To replace a term life insurance policy is often more difficult than to obtain one in the first place. First, if you’re replacing a policy, you’ve likely aged a few years, and the older you are, the more expensive life insurance gets. Life insurance premiums generally increase at each renewal period anyway, but if you let your term life insurance policy expire, you may also need to undergo another medical exam and a blood test.

If you’re looking to get a different, or cheaper policy, it’s always best to talk with the insurance company and make the necessary changes, rather than to simply let your policy expire. When used as it is intended, a term life insurance should be available for raising a family or fulfilling financial obligations upon death. Check with your individual agent to determine the type of life insurance which fits your needs and make any changes to your policy before it lapses.

If you can’t afford your term life insurance rates, talk to your agent about switching to a lower monthly payment, rather than paying the premium once a year, or discuss other savings options. If you are looking to switch companies, don’t simply let one policy expire, thinking that you’ll just get another one. It is much easier to work with the insurance companies together to make the switch seamless and effective.

If you are still considering letting your term life insurance terminate early, keep in mind the consequences. As a general rule of thumb, it is important not to let your coverage terminate early, especially if you purchased coverage when you were young. Early termination of your policy will inevitably cost you more in the long run.


By Matt Reynolds - Google+

Posted 7:00 AM  View Comments

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Claude Reynolds Insurance Agency Inc. | 6801 Dixie Hwy #232 | Louisville, KY 40258 | Phone: (502) 933-2255 | Fax: (502) 933-5057

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