Changing Life Insurance Policy

Few of us enjoy the admin associated with changing providers, whether it’s a bank account, mobile phone company or utilities like gas and electricity. But changing your life insurance policy could be easier than you think and can be beneficial in the long run.

So if you’re considering whether to switch but you’re not quite sure, read our expert guide on changing life insurance policy.

Can I switch life insurance companies?

While you are entitled to change your life insurance provider at any time, you will need to meet the eligibility criteria, and your provider would need to be agreeable to offering a policy after underwriting, which is not guaranteed. So, be sure that changing your life insurance policy is right for you, and ensure you've got your new policy set up before cancelling your existing. If you're sure you want to continue, you can choose to either take out a new ‘top-up’ policy with another company or replace your existing policy altogether.

Why should I change life insurance policies?

Here’s why applying for a new life insurance policy can be beneficial:

  • Save money – You could potentially save by shopping around for the best deal and getting quotes from different insurance providers.
  • Increase your cover – If your circumstances have changed and you’ve become a homeowner, a parent or earned a promotion, for example, your current policy may not give you the cover you need.
  • Single life insurance – If you have a partner, you may prefer to take out two single life insurance policies, as a joint life insurance policy will normally pay out once upon the death of the first insured person, though some pay out on the second death.
  • Joint life insurance – You may alternatively wish to apply for a joint life insurance policy, instead of two single ones. This could be for you if you have the same protection requirements. Eg. to cover a joint liability such as a loan or mortgage.

How to change or rearrange your life insurance to another company

If you choose to switch life insurance companies, you will need to apply for cover. The provider will assess your application and decide whether they can offer a policy, and on what terms. Depending on the details you provide, the provider may want further medical information before they offer you a policy.

Of course, changing or cancelling a life insurance policy isn’t the only option. You could consider keeping your existing policy and ‘top it up’ with a new one. Your current insurer may also be able to amend your policy to reflect changing circumstances.

Remember that the terms of any new policy are set by the provider and will be based on what’s covered, as well as your age, health and circumstances at the time. So in some cases, it’s better to simply amend an existing policy where possible. 

Things to remember when you change life insurance policy

You’ll need to do your homework when switching life insurance companies. Here are some key things to remember:

  • Check that any new insurer is registered with the Financial Services Compensation Scheme (FSCS) so that if the company fails and cannot pay claims against it, the FSCS could step in to pay compensation.
  • Life insurance is generally cheaper when you’re younger, so changing your life insurance could lead to higher premiums than your original policy. This is because you’ll be older, and, more prone to health risks. If your health status has changed, it’s not guaranteed that you will be offered a new policy.
  • Remember, don’t cancel your existing life insurance policy before the new one is in place as your cover will end and you will not be entitled to any money back.

Can you change an existing life insurance policy?

Life is full of surprises, and there may be circumstances where you’ll want to increase your cover or make changes to an existing life insurance policy, rather than take out a new one or change companies. With Legal & General, you may be able to increase your cover without the need for any further medical information on certain life events:

-             The birth of a child or legal adoption of a child

-             You get married or enter into a registered civil partnership

-             Your earnings increase due to a new job or promotion

-             You increase your mortgage because you’re moving home or undertaking major home improvements

You can also ask to make other changes such as the term, amount of cover, removing a name from a joint policy, or changing how you pay your premiums (monthly or annually). Terms and conditions apply. These changes could affect the premiums that you pay, and we would have to assess any change request based on your circumstances at the time. Learn more about making changes to your life insurance policy.

Switch to Legal & General

Legal & General provides comprehensive life insurance cover from just £6 a month. And while we appreciate it sometimes feels easier to stay with your current provider, switching your life insurance can give you financial protection that you need. Our life insurance comes with guaranteed premiums (unless you make changes to the policy) and the peace of mind in knowing that you’ll be covered if you die or are diagnosed with a terminal illness (life expectancy less than 12 months) during your policy term. We offer a simple application process online or over the telephone and can give you an immediate decision; or, try our life insurance calculator to work out how much cover you need

Find out more about our Life Insurance