Can you replace a current life insurance policy?
Haven Life exists to make life insurance simple: It allows you to get a personalized quote in minutes and start coverage – all online.
But the reason Haven Life wants to make life insurance coverage simple is that it often isn't simple, and one illustration of it is exactly what happens when you need to replace one policy with another. This is what you should know:
Replacing an existing life insurance policy requires more paperwork
As you'd expect from a business that are responsible for matters of life and death, the life span insurance industry is highly regulated, and a number of those regulations are worried with policy replacements.
If a customer already has a life insurance policy (from, let's say, Company A) and wants to replace it with coverage from another insurer (Company B), there's a regulation which obliges Company B to notify Company A about the replacement, partially to give Company A the opportunity to conserve their business.
Furthermore, there's a waiting period, and additional paperwork must be filled out by the customer. It's a somewhat unwieldy matter, and Haven Life doesn't actually have a procedure in place for this.
As of now, Haven Life can't be accustomed to replace an existing life insurance policy, however the life insurance coverage agency is focusing on a solution and wishes to be able to support policy replacements later on.
You can increase your coverage if you're underinsured
For the time being, there's a few things to think about. Should you already have life insurance coverage (either from your employer or another insurer) but feel underinsured, you can get a Haven Term policy from MassMutual in addition to the coverage you currently have.
This could be a particularly wise decision if your circumstances have changed since you got your overall policy – perhaps you have more dependents, such as another child. Or maybe you purchased a house?
The other aspect to note is that, due to the replacement rule, factors to consider you get the right coverage at the outset.
How to figure out the coverage you need
If you don't yet have life insurance but they are searching for it, make sure to purchase the right policy. If you're not sure what coverage you'll need (just how much and for just how long), Haven Life makes it easy to figure out with its online life insurance calculator. The calculator considers your earnings, dependents and other factors, helping you determine the policy that's right for you and your loved ones.
Haven Life hopes to offer replacement coverage later on, until then, the very best idea is to get the right coverage whenever you sign up which means you don't have to change it whatsoever.