Replacing a Policy
Careful consideration should be given to replacing a life insurance policy. Your age and health affect the cost of a policy as well as the insurer’s health requirements. If you already have a policy, chances are the premiums for it are less than for a new policy. Also, if you are much older or your health has deteriorated, you might have difficulty qualifying for a new policy.
In any policy, cash value takes time to build. If you replace your policy it may be sometime until the cash value on the new policy builds up. In some cases, the cash value of a new policy may never reach the value of the old policy. If you are looking for added benefits or changes, it is often better investigate the options of your current policy than to buy a new policy.
If your old policy has lapsed, there may be a chance that it could be reinstated (see Lapses and Surrenders).