Is it time to Rebroke your Life Insurance?
In this guide we will look at Rebroking your Life Insurance. We will explain what Rebroking is, why it can save you money and when you should look at doing it. We’ll also look at the dos and don’ts and why it is especially important to look at Rebrokes if you have Life Insurance for a pre existing condition.
What is a Life Insurance Rebroke?
Quite simply it is looking to see if you can obtain your current cover for a cheaper price.
You will probably (or at least you should be!) effectively ‘Rebroking’ your other insurances such as Car and House Insurance by looking around each year at renewal for a better deal. Life Insurance however is different as it does not have a renewal date. The vast majority of people have ‘term’ insurance that runs for a specific number of years and therefore many people take it out and forget it.
To speak to a Specialist Pre Existing Life Insurance broker about a Rebroke please click the button below.
So how can I Rebroke my Life Insurance if it still has years left on the term?
Most term insurance has no investment attached to the policy and therefore no ‘cash in’ or ‘surrender’ value, this means that you can stop the policy at any time without penalty. The only penalty is that as soon as you stop paying the policy the cover stops!
Rebroking is the process of finding out if any other insurer (or even your existing one) can offer you exactly the same cover for a cheaper premium therefore saving you money for the remaining term of the policy.
Is it likely I will reduce the cost by Rebroking?
It will not always reduce the cost but it will in a significant number of cases.
Over the years the cost of life insurance has generally dropped so lets say you started a policy 12 years ago for £100,000 of cover over 30 years there is a fair chance if you now applied for £100,000 of cover over the remaining 18 years that is left on the policy the premium would be cheaper and therefore save you money for the next 18 years.
Why is it doubly important if you have a Life Insurance policy for a pre existing condition?
If you have a pre existing medical condition it is vital that you consider a life insurance Rebroke every few years. There are various reasons for this such as:
- Your health may have improved (so the insurer can offer you a better deal)
- Treatment for the condition may have improved (so there is less risk for the insurer)
- You didn’t obtain a good deal in the first place (especially if you didn’t use a Specialist Broker*)
- You may have given up smoking since you started the policy?
What are the risks of Rebroking?
Providing you follow this Golden Rule Rebroking is pretty much risk free.
DO NOT CANCEL YOUR EXISTING POLICY UNTIL A NEW ONE IS IN FORCE
It is vital that you follow this Golden Rule otherwise you could be left without Life Insurance. Your Specialist Broker* will be able to tell you when it is safe to cancel your existing policy. They will also be able to advise if there are any other risks attached to the Rebroke.
How do I do it?
The good news is it is easy to at least start the ball rolling.
If you approach a Specialist Pre Existing Conditions Life Insurance Broker with details of your existing policy and details of your medical condition they should be able to give an idea if they think a Rebroke is viable.
If they decide it is, they will take you through a Life Insurance application in the normal manner to obtain a new quotation. Once you have received the quotation you can decide if there is a saving and if the saving makes it worth your while to switch.
If you decide that you don’t want to switch or the new policy is more expensive than your existing one you simply keep your original policy and nothing has been lost.
To let a Specialist look at your policy click the button below and ask if they can look at Rebroking a policy for you.