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Things to consider when replacing an Insurance policy

Updated: Dec 18, 2018

Not all Insurance policies are created equal – even if they have the same name.

Before you change your Insurance policies, consider these four tips, to ensure you are not just saving a few dollars, but you’re also putting yourself in a better position.

Like for like?

Are you replacing your existing policy with a policy that is reasonably similar, and has the same benefits and conditions? If not, the savings you are making may be at the expense of having a comprehensive insurance policy.

Before deciding to replace your Insurance, make sure you do a full comparison of the benefits of each policy – and don’t forget we can help you with it.

Is cost the only consideration?

Perhaps your existing policy has some benefits or advantages that you can’t get with any new policy. Depending on what that benefit is, you may be better off keeping your existing policy, even if it is a bit more expensive than another relatively similar policy.

Have you had any medical events?

If so, so you may find that you can’t now get Insurance cover for a loss resulting from a recurrence of, or caused by, that medical event.

For example, if you had a skin cancer removed, that might be excluded from a new policy, while still being covered under your existing policy. Some medical events may be covered still, but you have to pay an additional premium.

You may be better off keeping your existing policy, to have the peace of mind that you are still fully covered.

Do you need to replace it – or just change what you already have?

Are you looking to save money on your premiums? If that’s the only reason for changing, you might be better off looking at ways you can save money on your existing policy, rather than go through the time-consuming paperwork for a new policy.

Changing your existing policy can also be less risky – when applying for a new policy, you may forget to tell the Insurance provider something important.

Plus, keep in mind that your circumstances may have changed: perhaps you have less debt now, or your children have grown up, so you don’t need quite as much cover anymore. Look at reducing the cover you are paying for, and see the premiums reduce – without changing policies.

Changing policies can be a good idea – but you need to do your homework first. Most of all, make sure you never cancel existing policies until you have confirmed replacement cover in place, and you know exactly what you are covered for, and the cost.

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