Could I lose money by replacing permanent insurance?

Question

As things stand, an agent has recommended replacing an older life insurance policy with a new contract. As things stand, the old policy may have cash value, guarantees, and favorable terms that are not obvious from the new premium quote. The policy was purchased for an earlier situation, and a recent family or job change may have altered that need.

Soradin · Accepted Answer

Surrender charges, taxes, new expenses, and lost guarantees can reduce value. For this insurance planning decision, replacing a life insurance policy can restart contestability and suicide periods, create new charges, require new medical approval, and cause loss of favorable guarantees. The policy terms and current values should be the primary reference points, not on a sales summary by itself. Start with the written policy together with the most recent illustration, and get a licensed insurance professional to confirm in writing any applicable guarantee, exclusion, rider, or surrender restriction.

Could I lose money by replacing permanent insurance?

Soradin

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