All Life Insurance Tips

Is it advisable to surrender already owned Variable Life Insurance and buy Index Universal Insurance?

Public Comments

1. Don't get any unless you have dependents that cannot live without your income.
2. Why do you want to switch? Is it to give the agent a new commission? Switching you would lose some benefits like the years you already have the old policy and the surrender charges that get reduced every year. So, it depends on how long you have had your old policy and what your trying to accomplish. Having said that, usually it is not in your best interest to switch. That is why there are strict insurance laws requiring agents to give you information that it may not be in your best interest to switch. And, the agent is required to tell the underwriting department that you are switching to another policy even if it is with the same company. You see the laws are there to protect you.
3. Why, based on the brand name? Look, insurance is a tool. You buy it to reach a goal. What's the REASON you want to switch, or are considering switching? Is there a goal that the Index UL will accomplish, that the VL isn't accomplishing? Or do you just think the new name is catchy, and you're unhappy with how the VL is performing for you? Set, or update, your GOAL. THEN consider WHICH product will meet that goal, most efficiently.
4. When you buy ANY cash value life insurance policy you're paying large, UP FRONT costs. You've already paid those costs with your current policy, so do you believe that the new policy is so fantastic that it's worth paying those large, up front costs again? If you're buying the same amount of coverage I would doubt this is in YOUR best interest, but if you're canceling $50,000 to buy $250,000 (for example) then it might make sense, but...I doubt it. Unfortunately the person showing you the new policy isn't exactly unbiased....