Insurance Understood: Replacing your toothbrush

By Steve Meldrum on November 11, 2023.

How often do you replace your tooth brush? I went for a dental cleaning last week and this topic came up. I told the hygienist how I felt a few teeth were harder to clean in the past week or two.

I have an electric toothbrush, so I was puzzled. She asked me when the last time I had replaced my toothbrush head. At some point, the toothbrush head has served its purpose and needs to be exchanged for a new one. Well, this got me thinking about life insurance.

A lot of people have term life insurance. This is great for short term needs that reduce or expire over time. However, sometimes the duration or amount of the life insurance policy is no longer effective. Similar to a toothbrush, it may need to be exchanged to continue to be effective.

Now, there are times when you need to toss out the entire term life insurance and get a new policy. This is comparable to having a manual toothbrush. However, there are also times when you can keep the policy and simply change a component of it to restore its effectiveness.

This is comparable to an electric toothbrush when simply the head is changed out.

Many life insurance companies allow you to internally replace your coverage with a new policy that has a longer duration. This can extend the coverage time significantly. For example, if you have a term ten life insurance policy you could internally exchange it for a term twenty policy.

No medicals, no hassle, just simply swapping the coverage out and voila, the life insurance is effective again.

Some life insurance companies allow you to increase your coverage amount without full medicals. So, with a handful of questions you are upgraded. I have never met anyone who likes going through the underwriting process, so this is a great option.

There are limits to the amount that can be enhanced but that’s ok, sometimes you just need slightly more to feel properly covered. For example, if you bought a rental property and wanted to cover that risk, this type of upgrade may do the trick.

Now, with both above examples, there will be a price change. The same things happens when you replace your toothbrush head, it’s a new cost.

However, addressing your coverage duration and amount is a lot better than not having a comprehensive life insurance policy to meet your needs. If your gut has been telling you that something is off when it comes to your life insurance, you probably need to change a component of it.

Going to a professional to verify or learn more about what is appropriate for you is a proactive step. A simple tip may save you a lot of trouble down the road.

Regardless, keep brushing your teeth and keep that life insurance.

Steve Meldrum B.Mgt. CFP CLU is the founder of Swell Private Wealth Ltd. For over a decade he has specialized in helping individuals and businesses expand protect and perpetuate their wealth. For further information or tailored advice, contact him at 403-487-0490, steve@swellwealth.com or connect on social media

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