Questions to Ask Before Replacing Existing Coverage

Consider new underwriting risk, a new contestability and suicide period, surrender charges, loss of favorable legacy provisions, and the tax consequences of surrendering a contract with a loan.

Compare the in-force ledger of the existing policy against the proposed design under conservative assumptions.

Existing coverage should not be terminated until new coverage is issued, accepted, and in force.

This article is educational and general in nature. It is not legal, tax, accounting, or investment advice, and it is not a recommendation of any product or strategy. Policy features, riders, and availability vary by carrier and state, and coverage is subject to underwriting and carrier approval. Non-guaranteed values depend on credited interest, policy charges, funding, withdrawals, loans, and other policy activity.