Your health, occupation or the insurer’s rules may all have moved since the original policy began. A replacement can therefore introduce new exclusions, waiting periods, premium patterns or claim definitions.
Cancelling or replacing insurance can remove protection that may be difficult or impossible to recover. The new cover should be understood and formally accepted before the old policy is ended. The old policy may also have guarantees, loyalty features or surrender consequences, and new commission and fees may arise.
This does not mean an old policy should never change. Cover can become unsuitable, unaffordable or outdated. It means the comparison must show what improves, what worsens, what costs arise and what happens if the new application is declined.
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Create a side-by-side comparison of the old and proposed cover: amount, definition, exclusions, waiting period, premium now and later, term, commission and lost benefits. Obtain written acceptance of the new terms.
Ask your advisor
- Why is replacement better than adjusting the existing policy?
- Which terms are worse or newly restricted?
- When exactly should the old debit order and cover end?
Do not cancel existing cover on the assumption that a new application will be accepted on expected terms.