When you have purchased a whole life insurance policy, you may discover that the details of the plan and the services that you receive are not what you wanted or expected at the time you initially purchased the policy. If you are not satisfied with the services that you are receiving for your policy in Ada, OK, it may be possible to transfer life insurance policy details to another provider.
Replacing with an Equivalent Policy
A key factor to consider before you obtain a new plan is the value of the policy. If you plan to transfer your policy without changing the value of your coverage, then you may qualify for the tax-free 1035 exchange.
When you file a 1035 exchange, you are obtaining an equivalent policy rather than purchasing a policy that is more comprehensive or that offers a greater amount of coverage.
Concerns to Consider
In many cases, it is important to recognize the fees and costs associated with transferring your policy. Although the details regarding fees and added expenses can vary between insurance providers, it is likely that you will end up paying additional costs when you transfer your policy.
It may or may not be appropriate to transfer your policy when you consider the additional costs associated with the change. In some cases, you may want to replace the policy by canceling your current plan and then purchasing a new policy with a provider, but this method can also be costly.
The decision to transfer your coverage for a whole-life policy is a personal choice, but you should be aware that there are fees and added costs associated with the change to your policy. Contact us to speak to an agent to learn more about transferring your life insurance policy.