What is the term for terminating an existing life insurance policy to purchase a new one?

The term for terminating an existing life insurance policy to purchase a new one is referred to as "replacement." This term is used to describe the process where a policyholder effectively replaces an existing insurance policy with a new one, which may involve canceling the old policy and initiating a new policy.

Replacement is significant in the insurance industry as it may have implications for coverage, premiums, and benefits. Insurers are required to provide information about the consequences of replacing a policy to ensure that the policyholder is making an informed decision. This includes understanding the challenges associated with new waiting periods, potential loss of benefits, and differing terms under the new policy compared to the old one.

While other terms like cancellation, switching, or termination may sound relevant, they do not specifically capture the comprehensive idea of replacing one policy with another, with all the considerations that accompany this change.