Haven Life exists to make life insurance simple: It enables you to get a personalized quote in minutes and start coverage – all online.
But the reason Haven Life wants to make life insurance simple is that it often isn’t simple, and one example of that is what happens when you want to replace one policy with another. Here’s what you need to know:
Replacing an existing life insurance policy requires more paperwork
As you’d expect from a business that deals with matters of life and death, the life insurance industry is highly regulated, and a number of those regulations are concerned with policy replacements.
If a customer already has a life insurance policy (from, let’s say, Company A) and wants to replace it with coverage from another insurer (Company B), there’s a regulation which obliges Company B to notify Company A about the replacement, partially to give Company A the chance to conserve their business.
Furthermore, there is a waiting period, and additional paperwork must be filled out by the customer. It’s a somewhat unwieldy matter, and Haven Life doesn’t currently have a process in place for it.
As of now, Haven Life can’t be used to replace an existing life insurance policy, but the life insurance agency is working on a solution and hopes to be able to support policy replacements in the future.
You can increase your coverage if you’re underinsured
For the time being, there are a couple of things to consider. If you already have life insurance (either from your employer or another insurer) but feel underinsured, you can get a Haven Term policy issued by MassMutual in addition to the coverage you currently have.
This could be a particularly good idea if your circumstances have changed since you got your existing policy – perhaps you have more dependents, such as another child. Or maybe you bought a house?
The other thing to note is that, because of the replacement rule, you should make sure you get the right coverage at the outset.
How to figure out the coverage you need
If you don’t yet have life insurance but are looking for it, be sure to buy the right policy. If you’re not sure what coverage you need (how much and for how long), Haven Life makes it easy to figure out with its online life insurance calculator. The calculator takes into account your income, dependents and other factors, and helps you determine the coverage that’s right for you and your family.
Haven Life hopes to offer replacement coverage in the future, but for now, the best idea is to get the right coverage when you sign up so you won’t need to replace it at all.
Michael Davis is a freelance writer and editor who has covered everything from fashion and music to parenting, work, and finance. He has been a chef, restaurateur and record label owner.