Related Topics:
Choosing the life insurance company | The sales and closing interview

Don't. The practice is sometimes referred to as twisting. It occurs when an agent induces a policyholder to replace an existing policy by misrepresenting or failing to disclose pertinent facts.

Sometimes replacement of life insurance is justified. If so, make sure to complete a Life Insurance Disclosure Form. It is required by Provincial insurance regulations and failure to do so properly may result in the loss of or suspension of your insurance license. The purpose of the form is to make sure the policyholder is aware of the pros and cons of both policies. A copy has to go to the company whose policy is being replaced. They usually contact the insured promptly to try and conserve the business. Replacement of term insurance with permanent coverage is usually justified. When applying for new coverage make sure that your applicant does not cancel the existing coverage until the new policy is approved and in force.
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Related Topics:
Choosing the life insurance company | The sales and closing interview