When should I consider switching my life insurance carrier?

There are legitimate reasons to consider switching carriers, but the decision must be made carefully with a full understanding of the costs involved.

Valid reasons to switch include: your current carrier's financial strength rating has declined significantly; you have a permanent policy that is underperforming (persistently low dividend rates or interest crediting below peers); your health has improved substantially, making you eligible for a better rate class at a new carrier; or a new carrier offers significantly better terms for a new policy need.

The costs of switching include: surrender charges on the old permanent policy (potentially significant in early years), loss of any conversion rights on an existing term policy, starting a new two-year contestability period, potential loss of preferred rate classes if health has changed, and in some cases taxable events if a permanent policy is surrendered with gains.

Nevada's replacement regulations require your agent to provide a written comparison of the existing and proposed policy before you decide. Use the full 30-day free look period on a replacement policy to review all details.

Agents in our network can perform a no-obligation policy review comparing your existing coverage against current market alternatives.