Life insurance rates are linked to age. A replacement policy will cost more because you're older now. Or, health-related issues could make it hard to secure a replacement policy.

Companies offer numerous life insurance products. Verify the types of policies you currently own (term, whole life, universal life, etc.). Compare the specifics of each policy with the terms outlined in the replacement contract you're considering.

Life insurance policies have a two-year contestable clause. After two years, the insurance company cannot deny benefits for an in-force policy except in cases of fraud. A replacement contract will have a new contestable period.

Permanent life insurance policies typically accumulate cash value. It will take many years for a permanent replacement policy to build cash value. Some permanent life contracts have a borrowing feature. The owner can take a low-interest loan (which must be paid back) against the policy's cash value. A replacement policy may not offer this option or charge a higher interest rate.

Ask about tax consequences and surrender fees associated with canceling existing policies. Find out if a new policy comes with a processing fee too.

If a replacement policy is still the best option, check the prospective company's financial stability rating, complaint record, and Illinois licensing status.

Keep your existing policies in place until you confirm the new contract meets expectations. You have twenty days from delivery to return it for a full refund.