It might seem like a good idea to drop one life insurance policy in order to pick up another one which seems to be less expensive. It is important to weigh the costs, both short and long term, before you start switching life insurance policies, or you could end up paying more and getting less.
Be wary of promotional ads that offer premiums which seem too good to be true. You may find that the discounted rates are only good for a limited time, or that you are buying a reduced coverage policy that contains questionable wording or excessive exclusions. Promotions are used to attract the customers from other companies, and generally have a down side which balances the costs over many years. Unless you are getting rates that locked in for the life of the policy, investigate the conditions of the policy carefully.
Another factor that needs to be considered when comparing life insurance quotes is that you stand to lose most, if not all, of the money you have invested into the existing life insurance policy. If you have already paid a couple of thousand dollars into the policy, it might be harder to justify switching companies than you thought at first.
Your rates will be based on factors that could affect the advertised rates, as well. Your age will cause the rates to go up, and so will your credit score. In many cases, these factors are not calculated into the original offer, and that means your final premium rates could vary drastically from the low rates you thought you were going to get.
In the long run, it might be more beneficial to pick up a supplementary life insurance policy at the advertised rate, but to hang on to your original policy as well. In this way, you can increase the amount of coverage you have and take advantage of the low rates without sacrificing everything you have already put into the existing policy.