Life insurance gives your loved ones peace of mind financially when you leave this world. However, it is crucial to understand what it means to be a policy owner. Can you transfer, sell or change anything about your life insurance policy?
Here are some common questions people ask about transferring, changing, and selling life insurance policies.
Can I transfer my life insurance death benefit to someone else?
The beneficiary(ies) of the life insurance benefit can be changed at any time during the policy duration through written instruction to Leadway.
In the case of a revocable beneficiary, you can change the beneficiary without their express consent. For an irrevocable beneficiary, you will need to get the beneficiary’s signature. It is advisable to keep the beneficiary revocable to have maximum control over the policy.
Can I transfer my life insurance ownership to someone else?
No. Life insurance ownership cannot be transferred to another person.
Can a life insurance policy be transferred after death?
The terms on which the policy was enacted cannot be changed after the death of the policyholder. Life insurance policy only results in a payout paid to the deceased’s beneficiary.
Can I sell my life insurance policy to someone else?
No, you cannot; life insurance policy is not transferable.
Can I transfer my life insurance policy to another company?
No, the policy cannot be transferred to another company. This is because of factors like underwriting, the change in the cost of life insurance over time, etc. In essence, the factors that made you eligible for the original life insurance policy may no longer apply.
While transferring life insurance policy to another company isn’t an option, policyholders can choose to get multiple life insurance policies if necessary. You can opt for a different type of insurance, such as term life.
At what age should I get life insurance?
Generally, you need life insurance if you have dependents or have debt that will continue after your death. Also, your 20s are actually the best age to get life insurance. You tend to get the most affordable rates because you’re healthier and pose less risk to insurance companies.
Bottom Line
A policyholder can neither transfer their existing life insurance policy from one company to another nor can they transfer it to another person. However, a policyholder can choose to change the beneficiary as and when they like.
Things happen, and some are just outside our control. Ready to get life insurance? Leadway Assurance offers a pre-priced and affordable term life insurance plan that costs only N10,000 yearly with up to N1,000,000 in benefits.
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