Refinancing Your Life Insurance

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“I just refinanced my mortgage and my life insurance”

When we buy a house, the typical process involves putting a down payment on a house, in which the bank will provide the mortgage for the balance, and over the period of the contract, we pay them back. In these instances, the traditional mortgage plan is about 30 years. The competition between consumers and banks in getting mortgages revolves a number of variables. The most notable is the interest rate the banks may charge for the mortgage they issue.

As for many that recently bought a house, they can concur that looking at getting a competitive interest rate makes a difference in the home buying process. It is also not uncommon for those who may have bought houses when interest rates were high, may consider refinancing their loan when interest rates are lower. This may involve a similar process to originally getting the mortgage. However, the objective is to pay off their existing mortgage balance with a lesser rate of interest being charged to their monthly payment.

Similarly, one may refinance their life insurance as they can refinance their mortgage. There might not be as much documentation required as it was for getting a mortgage. However, since there have been new developments in how companies price their policies, it may call for an opportunity to look at exploring ways one may purchase the same amount of life insurance at a more competitive premium.

With many new developments in medical sciences, healthier lifestyle choices people make, and research, insurance companies have been able to incorporate these new advancements in how they price life insurance. Also, at times companies who may have issued policies that people have purchased years ago may be eligible for “upgrades” in their policies.

The process involved with buying life insurance does not fall under the old mantra, “set it and forget it”. While many may have purchased a policy 20 years ago or even 5 years ago, it is something that should be incorporated in the overall financial planning review process.

While every company may offer a different array of life insurance products, it may be worth “dusting off that old policy” and see if it makes sense to find ways to get more bang for your buck.


Registered representative of and securities offered through Hornor, Townsend & Kent, Inc. (HTK), Registered Investment Advisor, member FINRA/SIPC, 600 Dresher Road, Horsham, PA 19044, (215) 957-7300. HTK does not accept time-sensitive or action-oriented messages delivered via e-mail, including authorization to “buy” or “sell” a security or instructions to conduct any other financial transaction.2599013AL_JUN21

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