What Is The Replacement Rule In Life Insurance? 
There is no one replacement rule in life insurance , but there are some replacement guidelines and explanations . Here are a few : 1 -RRB- If you replace a policy , you should understand what you are giving up in your old policy and/or gaining in your new policy . 2 -RRB- Whether or not you make the replacement is up to you to do . The insurance company for your new policy does not have the authority to terminate your old policy . The only time it might do so is if the new policy is with the same company as your old policy was , and you had explicitly stated that you wanted to replace your old policy with the new one . 3 -RRB- If you are keeping your old policy , you must be financially qualified to have the total amount of life insurance that you have now AND are applying for . 4 -RRB- In New York the replacement paperwork must be processed before the new life insurance application can be taken . 