When to Replace a Policy Bought Ten Years Ago

A decade-old policy might be expensive — or irreplaceable if health worsened. Replacement is a project, not a whim.

Run dual-track quotes

Apply for new cover while keeping the old policy. Only cancel after the new schedule is in force.

Health and age maths

Older age raises premiums; better wellness sometimes offsets. Loadings on the new plan can erase apparent savings.

Features checklist

Compare terminal illness, waiver, indexation, and trust status. Cheaper is not better if definitions shrink.

• New offer in writing.
• Like-for-like definition comparison.
• Cancel only after on-risk confirmation.

Never create a gap day

Run applications for new cover while premiums continue on the old policy. Only send a cancellation once the new schedule confirms on-risk dates. Exit fees and missed days are how “savings” reverse into losses.

Compare terminal illness, waiver, and trust status side by side — not just the monthly price.

Practical next steps

Treat this topic as a decision with paperwork attached. Write down the household facts that matter — who depends on income, which debts must clear, and which workplace benefits already exist — before you compare products. A clear brief stops glossy quotes from steering the plan.

When you speak to an insurer or adviser, ask for definitions and exclusions in writing, and keep PDFs of every illustration you rely on. Markets and underwriting change; your notes are the audit trail.

• Confirm what cover you already hold (personal and workplace).
• Size need against obligations, not round marketing numbers.
• Align wills, trusts, and nominations with the policy.
• Never cancel old cover until replacement is on risk.

Mistakes families make here

The common failure mode is optimising for the cheapest monthly figure while ignoring structure: joint versus single policies, accelerated versus additional benefits, and whether a trust exists at all. Another is letting group benefits create false confidence until a resignation removes them overnight.

Build a short annual review habit. An hour with schedules and nomination forms prevents most emergency weekends after a diagnosis or redundancy.