Can I Change My Life Insurance Coverage Later?

Life is constantly changing. Many people purchase life insurance to protect their families in the event of their death. Life insurance provides financial protection to your loved ones after your death. When you purchase a policy, you agree to pay regular premiums. In return, the insurance company pays a lump sum of money to your designated beneficiaries when you die.

You might have gotten coverage when you were a lot younger, but maybe you do not need the same amount today. Perhaps you need more or less. Is it possible to make changes? If so, how do you go about it?

First of all, there are a couple of life insurance options: term life and permanent life. Term life is set for a specific period (typically 10 or 20 years), while permanent life insurance lasts the rest of your life, as long as you keep making payments.

While term life insurance is less flexible than permanent life, some modifications are possible, especially if you are within the original policy’s timeframe and your health status has not changed dramatically. Your insurance company can help you come up with the right options, but generally speaking, there are a few ways you can change your life insurance coverage.

Convert Term Life to Permanent Life

This allows you to convert your term policy into a whole life or universal life policy, usually without undergoing a new medical exam. You can do this to lock in lifelong coverage, build cash value, or prepare for estate planning. However, check your policy for deadlines. Once the window closes, you may lose the option.

Reducing Coverage Amount

This can be done for both term and permanent policies. You can lower the death benefit to reduce premiums when financial obligations (like mortgages or child care) decrease. Some insurers allow this by request without full underwriting.

Changing Premium Payment Structure

This is usually done with permanent life insurance. There are several options available, such as:

• Switching from monthly to annual payments.
• Adjusting payments if you have built up cash value.
• Stopping payments in some paid-up whole life policies.

Adding or Removing Policy Riders

This can be done for both term and permanent policies. Riders allow you to customize your coverage by adding certain conditions. Common examples include:

• Accelerated death benefit (access funds if terminally ill).
• Waiver of premium (waives premiums if you become disabled).
• Return of premium (term only; refunds premiums if you outlive the term).

Some riders can be added after purchase, while others must be selected at the start. If your health has declined, adding a rider may be more beneficial than replacing your policy.

Contact Us Today

Life changes, and your insurance coverage should be able to change with it. Hartman Insurance Agency, Inc. can help you make the right decisions so you can protect your family.

We know how important your family is to you. Our Saline, Michigan agents are ready to help you. Whether you need basic coverage or something with more coverage, we can find a policy for you. Schedule a consultation today. Contact us via (734) 999-4190 or online here.