Change of life insurance at a cheaper provider worthwhile?
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The Journal “financial test” is used in the current issue of life insurance and pensions are being examined and the question is whether the change of life insurance at a cheaper competitor is worthwhile. The contracts differ in some cases so severe that a change of insurance, whether insurance or life insurance, may well be worthwhile.
” Life Insurance: When is a change worth
With a further reduction of the guaranteed interest rate for life and annuity policies next year to ask more and more customers, whether they pay even more contributions or switch to a cheaper competitor will. As the magazine financial test in its May issue, calculates that the change can be profitable at a cheaper provider, but only in the first contract year. Then you drive better if you hold out the existing contract.
In the modeling of financial test, the switch is worth from a bad to a good pension only in the early years. the old contract runs for five years, brings a switch anymore. The customer has paid the closing costs then, already, also for older contracts are often even higher guaranteed interest rate than new ones. In these cases, advises financial test to optimize the existing contract and to cancel such additional agreements as expensive or a “dynamic” to terminate the contract.
After only two years duration may be worth a change, however. In the examples of financial test, it was worth it both for men and for women to go to a cheaper provider. One should, however, can accurately compare the guaranteed benefits (pensions, lump sum) of the current contract with the guarantee of a new offer and force themselves not by an insurance agent for a new contract.
With the free computer in the Stiftung Warentest in the Internet one can calculate the return on his own insurance.
The full article is published in the May issue of financial reviews and online. “
