What to consider before switching Insurance Providers?
For example an individual has bought an accident insurance policy from XYZ company, and now wants to switch to GEN company. What are the considerations for terminating a policy? It is recommended to terminate the policy only when you have considered the following points below.
Does it have cash value?
Since the policy from XYZ company is an accident policy, it does not have any potential cash value lost upon termination. The policy can be terminated easily without much detriment to the individual.
Whole life policies build up cash value over the years, these cash values are treated as additional bonuses on top of the sum assured. It would be detrimental for the individual to give up such a policy. Unless the individual is willing to forgo the money spent on the policy.
Do you have pre-existing illness?
Something to also consider is if the individual is older (age 40 onwards) do they have pre-existing illnesses? If they do, it is not advisable to terminate their existing hospital, or accident plans as they may not be able to buy a new plan that covers accidents and hospitalisation (A&H).
These plans require medical underwriting, hence they pre-existing illness might cause them to be unable to buy A & H plans in future.
Changing your agent
If you want to change the agent can submit a form to request to change the agent (e.g children become the Insurance Agent for parent). This happens when the policy holder’s financial adviser is from the same company but wants to switch the policy over to new financial adviser.