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Switching Life Insurance: Is it Worth It?
This article discusses the potential drawbacks of switching life insurance policies, offering alternatives like premium suspension and secondary market sales, while stressing the importance of reviewing policy documents and seeking expert advice.
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Verbraucherzentrale NrwDeutsche Presse-Agentur (Dpa)Sz-Redaktion
- Why is switching life insurance policies often not advisable?
- Switching life insurance policies is often not beneficial, especially with older policies offering higher guaranteed interest rates than newer ones. New policies often come with lower or no guarantees and higher costs due to low interest rates.
- What should consumers do before making decisions regarding their life insurance policies?
- Consumers should examine their insurance documents to understand the terms and potential benefits before switching or cancelling policies. Seeking advice from consumer protection agencies can also be helpful.
- What is a potential alternative for getting money from a life insurance policy if you need it urgently?
- If you need the money urgently, selling the policy on the secondary market can potentially yield a higher return than the insurer's buyback value upon cancellation.
- What is a better alternative to canceling a life insurance policy if you can no longer afford the premiums?
- Cancelling a life insurance policy isn't always the best option; a better alternative might be to request a premium suspension, preserving savings without further payments.
- Under what circumstances might policyholders still be able to exercise their right of withdrawal, even years after the policy was issued?
- In some cases, policyholders may still be able to exercise their right of withdrawal, even years later, if the insurer failed to adequately inform them of their rights upon contract conclusion.