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. In other words, you are in some way changing your existing policy or contract, and getting a new policy.

If you're thinking about canceling an existing life insurance policy or annuity and getting a policy through Ladder instead (known as a replacement), there are a few things to keep in mind.

Any replacements should be carefully considered. It is important to look at all the elements of the new policy/contract along with what you will be giving up in the existing product.

Does Ladder accept replacements?

Ladder accepts replacements from residents of California, Delaware, the District of Columbia (D.C.), Idaho, Illinois, Minnesota, North Dakota, Pennsylvania, Tennessee, and Washington.

If you’re not a resident of one of those states or D.C., stay tuned! Ladder is working on accepting replacements from more states. Revisit this page for updates.

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 term policy through Ladder. 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 through Ladder, we would not consider this a replacement
• Canceling an accidental death & dismemberment policy

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