A replacement, as used in this context, is a life insurance policy that is to be purchased, and the insurance agent or company knows or should have known, that an existing policy is being terminated or amended in order to acquire the new policy.

Said another way, a new policy is considered a replacement if, by reason of the purchase, an existing policy has been or will be lapsed, cancelled, terminated, converted, or reduced in value. Usually, customers replace a policy to find a better rate, but this is not always the case. Regardless of 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 are 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.