Can I Change my Death Benefit?

For most policy holders the answer to this question is yes, you can change your death benefit. If you purchased a term plan originally so that you could buy the most affordable coverage possible, but you now have the means to afford purchasing a higher level of coverage you would not want to be precluded from making this purchase. Often, it is good enough to simply buy adequate life insurance, but it takes time before an individual or couple realizes just what would make for a more sensible coverage limit.

If you purchased a plan and feel now that you can afford more death benefit coverage than when you first bought your policy, do not hesitate to contact your insurer about increasing your coverage. It is not necessary to apply for the policy all over again. You do not need to worry about getting turned down for a plan you already have. You would need to fill out any appropriate forms provided by your insurer in order to make the change, but aside from making a change to the premium payments from that moment on there is little else you have to do to change your benefits.

If you purchased a term plan and realize the amount you originally purchased would be a little too low to cover all your family would need now, you most certainly could ask your insurance company to increase your benefit limits. You may only need to fill out a form in order to make the change, too. Your premium payments will be affected to the degree which your death benefits increase. If you have been paying a monthly premium by credit card or by an automatic checking account deduction, you would just need to be mindful of the new premium payment amount.

Making Changes to Life Insurance

There may be some instances where it would not be possible to change your death benefit. If your insurance company has a limit on how much they offer for coverage, such as $500,000.00, obviously you could not change your death benefit to a higher level than that amount. If you are about to turn 80 years of age and looking to change your term death benefits, it might be impossible to do so as the term coverage may end for you upon your 80th birthday.

While there are instances where it might be impossible to change your death benefits, these instances are ones you would likely know about once you purchase the initial policy and read through the terms set by your life insurance company. The fact is you can most always make changes to your death benefits. If you feel you need to downsize your finances, you may be foolish to do away with a life insurance policy.

You could opt to get lower benefits for a time so that your policy becomes more affordable for you until you can resume making premium payments for greater benefit limits. You can make changes to death benefits after a life changing event such as after the birth of another child or after getting a divorce. In fact, it is not a bad idea to regularly review your life insurance policy so as to make sure you are carrying plenty of coverage at all times.

Many policy holders find that it is useful to review their policies once each year. This allows them to make certain their coverage adequately supports any life changes they have experienced. If not, they can use this time to make any necessary changes to their death benefits.

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