Compare old and new side by side
A lower new premium is only one dimension. Compare the death benefit, remaining term, renewal schedule, conversion rights, guarantees, riders, exclusions, cash value and surrender charges.
Also compare what changed in your health. The existing policy may preserve terms that cannot be obtained again.
Do not create an uninsured gap
A replacement should not be treated as complete until the new contract is issued, delivered, reviewed and accepted and its first premium requirements are satisfied.
Cancelling an existing policy before the new one is securely in force can leave no coverage if underwriting changes the offer.
Ontario requires a replacement process
Ontario uses a Life Insurance Replacement Declaration to document advantages and disadvantages when an existing policy is replaced.
Replacement is more defensible when the new contract solves a material problem that cannot be fixed through the existing policy—and the benefit remains after fees, new conditions and lost guarantees are counted.
Official sources
This is general educational content, not a recommendation of a product or amount for a particular person. The answer changes with the contract, need, finances and health.