What Should I Do With My Current Life Insurance Policy?
The most important thing to remember when deciding what to do with your current life insurance policy is that you should never cancel your existing policy until you have confirmation that your new policy is in force.
You never know what might happen, so if you want to ensure that your life is always insured, you should not cancel your existing policy until you are sure your new policy is in place. It's often best to wait until you have written confirmation that your policy has started before deciding what to do with your current policy.
In Worse Health?
Another thing to consider is that if you've had your existing policy for a few years, you'll now be older and possibly in worse helath than when you took your policy out.
You may therefore find the premium you're quoted for your pension term policy is significantly higher than your existing policy, negating the gains from the tax relief you would receive.