A replacement policy is a new life insurance policy that replaces an existing policy. The existing policy has been or will be terminated, lapsed, canceled, converted or reduced to buy a new policy.

Usually, customers replace a policy to find a better rate, but this is not always the case. No matter the reason, replacements require insurance companies to follow specific rules to process a replacement correctly.

Does Ladder take replacements?

At this time, Ladder does not take replacements. We’re happy to accept a new application for customers who are looking for their first insurance policy, or customers who are looking to get additional coverage.

What is NOT considered a replacement?

There are a few scenarios that are not considered replacements by life insurance standards, such as:

• Canceling a group life insurance policy (as long as there was no direct involvement or solicitation or from a life insurance agent).   
• Group life policies offer limited coverage at a low price, so customers often maintain their work policy and add on a Ladder term life policy. You can read more about group life in this article: Facts about group life insurance through work
• Canceling a term life insurance policy after the term has ended.  Most term policies include a renewal option where the coverage remains, but the cost increases. If you cancel your policy during this renewal period and start coverage with Ladder, we would not consider this a replacement.
• Canceling an accidental death & dismemberment policy.

If you have any questions about replacements, please reach out to us at help@ladderlife.com. We’re here to help.