Replacing a Life Insurance Policy

quick summaryQuick Summary: Obtaining life insurance is actually easier than you might think. The same can be said about replacing an existing life insurance policy. Never cancel your old policy until the new one is confirmed to be in force.

When it comes to replacing an existing life insurance policy, there are a few things you want to make sure you consider:

  • What type of life insurance policy best fits your needs?
  • How long will you need life insurance coverage for?
  • Do you think your life insurance coverage needs will change a lot over the next decade or so?
  • How much life insurance coverage do you need?

While there is far more to consider in the process of replacing your life insurance policy, these questions offer a great place to start.

Before we dive into everything you need to know about replacing your life insurance, let’s take a quick minute to go over the topics we will be covering in this article:

What you will learn in this article (click to go to section):

Top Reasons People Replace Life Insurance Policies

There are plenty of reasons to replace your existing life insurance policy. In my experiences, the main reasons people often seek to replace their life insurance policies are:

  • Your existing policy has expired
  • Your existing coverage is not enough
  • Your needs for life insurance coverage has changed
  • You are looking for more affordable life insurance coverage
  • Your financial planning strategy has changed
  • You are looking for a different type of life insurance policy

Depending on the reason you are looking into replacing your life insurance policy, it can make a difference in the steps necessary to find the best coverage for you.

Let’s take a second to explain how each of these scenarios should play a role in the process of finding a new policy.

What to Do if Your Existing Life Insurance Policy Has Expired

If your life insurance policy has expired and you are looking for replacement coverage, you need to assess your coverage needs very carefully.

While you may be in great shape, and not have that dangerous of an occupation, the fact of the matter is, you likely don’t want to be uninsured for too long, especially if you have a family depending on your income.

In situations where you need immediate life insurance coverage and cannot afford to wait, we recommend picking up a small no exam life insurance policy, or even a final expense policy that can cover your family’s needs for life insurance while you take the time to find the best policy for you in the long run.

If your life insurance policy has expired and you are looking to replace it, we also recommend obtaining coverage as soon as possible because your health may decline as time goes on and life insurance rates constantly increase as you get older.

To get the lowest rates on replacement life insurance, it is best to apply for coverage immediately.

What to Do if Your Existing Life Insurance Coverage is not Enough

If your existing life insurance coverage is not enough, there may be something you can do about it by working with a life insurance agent.

Most permanent life insurance policies have provisions that allow you to take out term life insurance policies for supplemental coverage.

Even if your policy is not a permanent one, or does not have this term life insurance rider on it, you can always take out an additional term or permanent life insurance policies through other companies or even the same company.

Taking out multiple term life insurance policies is typically called layering term life insurance policies, and it is a commonly used technique for replacing life insurance policies and ensuring that you have the coverage you need throughout the various stages of your financial, family and work life.

When looking to replace an existing life insurance policy because your coverage is not enough, you want to be careful to make sure you gauge your future needs as your debts and number of financial dependents may increase over time.

What to Do if Your Needs for Life Insurance Coverage Have Changed

Don’t worry, you are not the only one in this boat.

Life happens quick, and often times can land us in places we never expected to be. Whether that is obtaining the new promotion you always wanted or having triplets, we have you covered.

When replacing life insurance because your coverage needs have changed, you want to be sure that you consider all of your life insurance options prior to purchasing a new policy.

The best way to ensure that you have explored all of your coverage options when replacing an old life insurance policy is to speak with an independent life insurance agent.

Our agents work with dozens of the best life insurance companies on the market to help our clients find the best coverage for their family’s needs. Give us a call today to work with an expert!

What to Do if You Are Looking for More Affordable Life Insurance Coverage

We hear this quite often as well. Life insurance is important, but it is also important to make sure that your life insurance coverage is affordable too.

Often times, people purchase a policy out of necessity, only to come back a few years later and realize they are grossly overpaying for their life insurance coverage.

When it comes to looking for affordable coverage for replacement life insurance policies, the best place to start is also speaking to an independent agent.

While online comparison tools are helpful and quick, there is ultimately no way to know the best rates for you without knowing a bit more about your needs, and also a bit more about your health background and other factors that affect rates.

Once you have searched around a bit for some of the best life insurance rates, give our agents a call and get started finding the best replacement life insurance policy for your needs.

What to Do if Your Financial Planning Strategy Has Changed

Are you looking to replace your life insurance policy because your financial planning strategy has changed? Don’t sweat it. This happens more than you might think.

As you get older, things in life change. Careers change, kids grow up, mortgages get paid off, and even your interests will change over a lifetime.

Life insurance coverage is meant to match your needs. For people who are looking for more of a permanent life insurance solution in order to build an estate or trust to leave a legacy for your family, or protect your business assets, replacing an old term life insurance policy is a great place to start.

Most life insurance companies offer term conversion riders on term life policies which allow them to be converted into permanent life coverage without the need for medical re-evaluation.

Speak with your agent first to find out if your term policy has this rider attached. If so, replacing your old policy may be very simple.

If not, you may have to do a bit more work to search through the many types of permanent life insurance policies to find which is best for your needs. We can help with that.

What to Do if You Are Looking for a Different Type of Life Insurance Policy

People looking for a different type of policy also frequently contact us looking for help. Replacing an existing life insurance policy with a new type of policy is a bit more complicated than some of the other scenarios listed above, but is still feasible.

When it comes to replacing your life insurance with a new type of policy, you really want to explore your options because there are so many types. We can help with this process to make it very easy to find the best replacement life insurance rates and policies for your needs.

Important Things to Know Before Looking for Replacement Life Insurance

Throughout the years, we have seen a lot of different cases when dealing with the process of replacing life insurance policies. Here is a list of dos and don’ts that have been born out of some of these situations we have experienced.

These tips should help you to make the best decision, and also go through the life insurance replacement process with little financial harm or stress.

Do Not Cancel your old policy until you have a new one in place

Sounds simple right? Boy, would you be surprised.

Put simply, just don’t do it!

Don’t cancel your old policy until the replacement life insurance policy completely in place. You never know what can happen in that week or so of time when you are uninsured.

And the last thing you want is for your family to have to suffer financial burden in the event of your death because you were too impatient to wait the time period of approval before canceling your old policy.

Consider the Tax Implications of Canceling Your Old Policy and Replacing it

While this probably doesn’t apply to most people, if you have a life insurance policy you are replacing, you should speak with an agent or with your accountant before replacing your current life insurance policy.

Specifically, for business owners or people who hold assets under their life insurance policy, this is especially important.

Consider Amending Your Current Life Insurance Policy Before Replacing it

Most life insurance companies offer the option for their clients to amend their current policy by adding more coverage or sometimes even opting for less coverage.

You will need to check with your life insurance provider to see if this is something that they offer and then will want to compare rates on new policies with those of your existing one once it is amended to make sure you are getting the most affordable life insurance rates.

Make Sure to Read the Fine Print on Your Replacement Policy First

This is yet another simple pointer that can make a world of difference when it comes to finding replacement life insurance coverage.

While life insurance companies are never trying to undermine you or hide anything from you, it is easy to neglect some of the policy provisions if you are not careful.

Working with an expert is the best way to ensure that you fully understand your replacement life insurance policy and that it is the best coverage for your needs.

What Type of Life Insurance Policy is Best for You?

Replacing your life insurance policy can be a bit overwhelming because chances are things are much different than the last time you applied for life insurance. The types of life insurance policies on the market have changed quite a bit in the last 30 years.

On top of that, your needs have changed, and while you may not be a stranger to life insurance, you could probably use a refresher on some of your options and what they entail. The table below displays some of the most common term and permanent life insurance policies that are available to help you identify which life insurance policy is best for the replacement of your old one.

Type Features
Term Life Insurance
  • Term can be for 10, 15, 20, 25, or 30 years.
  • It is renewable most of the time until age 95.
  • Level term or decreasing term. Level stays the same, decreasing keeps the same premiums but the benefit goes down with time.
Whole Life Insurance
  • Whole provides permanent coverage
  • There is cash value accumulated
  • Money can be borrowed against the policy
Guaranteed Universal Life Insurance                                   
  • Several options, up to age 90, 100, 110, or 121 based on the company
  • There is minimal cash value
  • Typically the lowest cost for permanent policies
  • Many riders available
Variable Universal Life Insurance
  • Face value fluctuates based on investment value, typically equity products
  • Investment vehicle, tied to the performance of a portfolio
Indexed Universal Life Insurance
  • Guaranteed minimum returns from investments
  • Protection against market downturns
  • Provides cash accumulation

How Much Does a Replacement Life Insurance Policy Cost?

When it comes to figuring out life insurance rates, companies use a myriad of factors to determine your life insurance premiums. The main factors affecting your life insurance rates are:

Other factors also make an impact on rates, but these have the largest effect on the life insurance premiums you will pay for a replacement policy.

The table below illustrates life insurance rates for term and permanent life insurance for people from ages 40 to 75 in five-year increments. Both male and female rates displayed are in terms of monthly cost.

Also, keep in mind that these rates are for people in the preferred health classification. People with lower health ratings than this can expect to pay higher life insurance rates on their replacement policies.

Age Policy Type $100,000 Male $100,000 Female $500,000 Male $500,000 Female $1,000,000 Male $1,000,000 Female
40 10 Year Term $8 $8 $19 $17 $30 $28
40 20 Year Term $11 $10 $31 $27 $58 $47
40 30 Year Term $19 $16 $58 $45 $108 $85
40 Whole Life $88 $80 $248 $216 $464 $376
45 10 Year Term $11 $10 $30 $26 $50 $44
45 20 Year Term $17 $14 $52 $41 $95 $75
45 30 Year Term $26 $21 $89 $68 $171 $130
45 Whole Life $136 $112 $416 $328 $760 $600
50 10 Year Term $15 $13 $46 $37 $83 $67
50 20 Year Term $24 $19 $82 $61 $155 $112
50 30 Year Term $41 $31 $140 $107 $270 $206
50 Whole Life $209 $165 $682 $484 $1,287 $902
55 10 Year Term $20 $18 $76 $55 $141 $101
55 20 Year Term $36 $27 $133 $97 $255 $181
55 30 Year Term $73 $57 $271 $194 $534 $381
55 Whole Life $297 $231 $1,089 $715 $2,057 $1,331
60 10 Year Term $32 $25 $122 $83 $226 $151
60 20 Year Term $60 $41 $235 $158 $456 $304
60 Whole Life $384 $300 $1,464 $996 $2,712 $1,812
65 10 Year Term $57 $37 $220 $136 $409 $254
65 20 Year Term $108 $72 $457 $298 $865 $556
70 10 Year Term $96 $63 $373 $241 $705 $445
70 20 Year Term $207 $172 $848 $682 $1,694 $1,363
75 10 Year Term $161 $112 $675 $460 $1,259 $885
75 20 Year Term $280 $215 $1,254 $871 $2,487 $1,659

Can I Get Replacement Life Insurance if I Have a Health Condition?

This is a concern that people often have about obtaining replacement life insurance coverage.

Even if you have a medical condition you can still get life insurance. Health conditions should not stop you from getting a quote. Life insurance can vary widely and there are policies for any medical condition and every person.

Replacement Life Insurance Rates for People with Health Conditions


For example, with diabetes in your 40’s this is what you would be charged on average:

Age Policy Type $100,000 Male $100,000 Female $500,000 Male $500,000 Female $1,000,000 Male $1,000,000 Female
40 10 Year Term $11 $10 $27 $23 $44 $38
40 20 Year Term $14 $12 $40 $34 $74 $62
40 30 Year Term $22 $18 $69 $54 $129 $101
40 Whole Life $112 $96 $320 $272 $592 $496


But if you were recently diagnosed with cancer in your 40’s it would change the costs:

Policy Type $100,000 Male $100,000 Female $500,000 Male $500,000 Female $1,000,000 Male $1,000,000 Female
10 Year Term $8 $8 $19 $17 $30 $28
20 Year Term $11 $10 $31 $27 $58 $47
30 Year Term $19 $16 $58 $45 $108 $85
Whole Life $88 $80 $248 $216 $464 $376

Can I Get Replacement Life Insurance if I am Denied Life Insurance Coverage?


Even if you are denied life insurance coverage due to your health, there are still coverage options available to you.

For people in this situation, we recommend a guaranteed issue no exam policy. This type of policy offers coverage in small amounts (usually up to $50,000) to people who are otherwise denied life insurance coverage.

No exam policies offer both term and permanent life coverage and are a great life insurance replacement option for people who need coverage fast, or who have pre-existing health conditions that limit their life insurance options.

Guaranteed issue policies enable people to find replacement life insurance within 24 hours or less!

Depending on the type of policy you choose, there may be stipulations as to how the death benefits are paid out, in an effort to protect life insurance companies from the higher risk of these applicants.

If you are looking for no exam life insurance as a replacement for your existing life insurance policy, give us a call so we can help you understand your options available and find the best replacement life insurance protection for your loved ones.

What Information is Required to Apply for Replacement Life Insurance?

New Policies

When applying for replacement life insurance, you are typically asked about your current health and any past health conditions. You are also asked about your family health history.

Your insurer might ask you to give consent for your medical records to be reviewed. They might also ask you to submit to a medical exam before they issue you a policy.

Supplemental Coverage

If you are covered under a group life insurance policy with work, you might still want a personal policy. Having a personal policy is great because almost no employer coverage will be sufficient.

So, if you already have life insurance coverage through your employer and are looking for a replacement—because it is simply insufficient or you are switching jobs—there are more options at your fingertips.

Replacing coverage from an employer with a personal policy means more options because most of the time you are completely limited in terms of what the employers offer you. You don’t have access to the full portfolio offered by the insurance company.

When you secure life insurance coverage as an individual you can choose many more policy types with various riders, such as terminal illness riders or long-term care riders, even riders that enable you to add your spouse or children to your coverage.

How to Find the Best Replacement Life Insurance Rates

Finding the best life insurance rates for replacement policies comes down to your ability to filter information and research. The more research you do, the better the chances are that you will get the best rates possible on your replacement life insurance policy.

Life insurance is our thing. It is all we do.

We help our clients to find the most affordable life insurance coverage for replacement coverage very often.

To skip all of the stress and time-consuming effort of looking around for life insurance replacement options, give us a call or fill out a quote result form. We’ll search from dozens of the best life insurance companies on the market in order to find you and your family the best replacement life insurance policy.


  • Ty Stewart

    Ty Stewart is a founder and contributor of He started researching and studying about life insurance when he got his first policy for his own family. He has been featured as a life insurance expert speaker at agent conventions and in top publications. As an independent licensed life insurance agent he has helped clients nationwide to secure affordable coverage while making the process simple. Stewart Ty
  • Bennett Bier

    I’m Bennett Bier, owner, author and fact checker of Simple Life Insure. I believe working with a small independent broker offers consumers more personal attention and superior customer service. As an independent agent licensed in all 50 states and the District of Columbia I have access to many of the top A+ rated life insurance carriers. This lets me locate a plan that you will qualify for while saving you money at the same time. Over the years I have mastered the art of underwriting, getting approvals even for my highest risk clients. I’m also likely the person that will answer the phone when you call. Bier Bennett