If I am unsatisfied with the rate of return that I am receiving on my permanent life insurance policy, should I replace or change the policy for another one?

The first step is to thoroughly understand the reason why you purchased the life insurance policy. If you aren't satisfied with the rates that you are receiving, then it will be a good idea to call your insurance company and speak with them about this issue. If the company doesn't cooperate, then you should consider changing your policy. If you want to purchase another policy without changing companies, you can do so as well.

Always keep in mind that there is a chance that you aren't receiving all that you are entitled to, and that there really is a better deal out there. Before changing your policy, ask your insurance company if there are ways to change certain conditions in order to result in a better rate of return. Such provisions include reducing the number of riders or reallocating the investment subaccounts in a variable policy. If you finally decide to replace or exchange the policy, make sure that the new policy is issued before terminating your old one.

If not, you might be left with little or no coverage when your application is declined. Keep in mind that if your insurance company requires you to take another medical examination, you might end up paying a higher premium when canceling your old policy, and switching to a new one. Another medical exam is almost certain to take place if you are replacing your policy with one at another company. If you had your old policy for a long time, your medical exam might end up having worse results than previously. Now that you are older, you have a higher risk of dying. This might increase your life insurance policy rates. However, if you quit smoking or gave up a bad habit while owning your previous policy, you might have better results.