Times are tough and you want to make money out of your life assurance policy that you already have – but wait!! Is this the best option and the only route that you can take to get you out of deep water? Perhaps you should give this a little more thought before you take the plunge.
Think twice before you get rid of your life assurance policy. If you would like to switch policies that is fine but be cautious of anyone who strongly advises you to cancel an existing policy.
The life assurance industry is competitive and on the whole with modern medicines people are enjoying longer life expectancies.
People living with HIV/Aids are receiving better care and are being educated, as the government is supporting this cause more than in the past, and therefore people, especially in this age category, are living longer and more fulfilled lives. All these facts combined, make life assurance cheaper and more affordable for many.
If you do have a long-term guarantee, it is not advisable to switch out of a level-premium policy. If you are paying an amount (for example) of R100 on your premium every month to a policy that escalates every year, you will be doing yourself a disservice and you will not gain in the long run, but will pay more and lose out.
Should you cancel and existing policy and the new policy you are switching to has not been confirmed you might find yourself without cover. Only cancel once the new life assurance is confirmed in black and white. This will not prove to be wise if you suddenly fall ill and find that you have a terminal illness, such as cancer or a heart condition.
If this does happen be aware that exclusion for your condition could be added to a new policy – always read the fine print carefully.
If you do have an investment component on your existing policy always make sure that you do not lose out on the investment portion when cancelling your existing life assurance policy.
When swapping life assurance, do your homework and read all the fine print before taking this giant step. After all, you would like to gain from changing and not lose.
