FAQ - Life Insurance
Can I change my beneficiary?
If your beneficiary is revocable, you have flexibility. This is the option we generally recommend. If your beneficiary is irrevocable, you need permission from your beneficiary (a bigger challenge if your beneficiary is a minor).
Can I increase/decrease my coverage?
You can decrease your coverage. Increasing coverage requires underwriting (similar to buying new insurance)
The insurer may have administrative rules such as
- limiting changes to a policy anniversary
- requiring a minimum increase (e.g., $25,000)
- requiring a minimum amount of coverage after a decrease
Can I cancel my insurance?
You can cancel your insurance anytime. However, you may face penalties ("surrender charges") if you have tax-sheltered savings.
If your health has deteriorated, you may have difficulty getting new insurance later or may be required to pay higher premiums.
Tip: If you're applying for new insurance, never cancel your current insurance until the new protection is in place.