Should I Cancel the Policy I Have Now?

If you are considering cancelling your life insurance policy, here are some things you should consider:
1) Don't cancel you old policy until you have received the new one. You then have a minimum period to review your new policy and decide if it's what you wanted.
2) It may be costly to replace a policy. Much of what you paid in the early years of teh policy you have now paid for the company's cost of selling and issuing the policy. You may pay this type of cost again if you buy a new policy.
3) Ask your tax advisor if dripping your policy could affect your income taxes.
4) If you are older or your health condition has changed, premiums for the new policy will often be higher. You will not be able to buy a new policy if you are uninsurable.
5) You may have valuable rights and benefits in the policy you now have that are not in the new one.
6) If the policy you have now no longer meets your needs, you man not have to replace it. You might be able to change your current policy or add to it to get teh coverage or benefits you now want.
7) At least in the beginning, a new policy may pay no benefits for some causes of death covered in the policy you have now.

In any case, you should check with the agent or company that issued your current policy. You may be able to get an updated illustration to see how your current policy has performed and what you might expect in the future.

Also keep in mind, that your age is always a factor in determining the premiums for a new policy. If you have had the same policy for a number of years, your premiums on that policy could be less than or equal to a new policy premium for half the face value.