If you still have a life insurance policy you bought more than 10 years ago, you may be paying too much for the coverage. Therefore, it might make sense to replace your old life insurance policy with a new one. Especially if you’re in good health for your age, you might be able to get equivalent coverage at a much lower price.
Step One is to review your current need for life insurance. If your children are grown and living independently, you might need less coverage. Alternatively, you might need more coverage if your existing insurance would inadequate to maintain your family’s lifestyle.
Step Two is to decide what type of life insurance you need. Term insurance provides coverage for a specified number of years at less cost, but if you’re not sure your need for life insurance will ever expire, a more expensive permanent life policy might be a better choice. This coverage is known as “whole life,” “universal life,” or “variable life” insurance.
Once you make these decisions, work with an experienced agent to shop the market and get the best deal. Don’t cancel your old policy until the new one is in effect. If you’ll owe income tax on a policy cancellation, ask your agent to arrange a tax-free exchange from your old policy to the new one.
ask.FEDweek.com: FLTCIP – Federal Long Term Care Insurance Program