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Suggests that using the cash value from your current policy to fund the premiums on a new policy offers a demonstrable advantage to you,
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Advises you not to speak to anyone from your current insurer about a policy replacement or change he/she is proposing,
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Asks you to sign incomplete or blank forms, or
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Speaks negatively about another agent or company.
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Your best defense against an ill-advised replacement or change to your life insurance policy is knowledge. The more you know and understand about your current policy and the proposed new policy, as well as the company and the representative, the better equipped you will be to make the best decision. Remember, if you intend to replace or change an existing coverage, you should be sure that the agent selling the new policy has your best interests at heart, and bases the purchase recommendation on an appropriate needs analysis. Agents have a duty to inquire about your current coverage. Once on notice, the regulatory steps designed to protect you should occur.
The information provided in this pamphlet is not a complete listing of questions or effects of an intended replacement of your life insurance policy.
The Department of Insurance cannot make recommendations concerning life insurance products. However, you may always call our Hotline or write to us with any questions. Please refer to the CDI contact information on the last page of this brochure.
This brochure is the result of a joint effort among consumers, insurers, agents, and the staff of the California Department of Insurance. It is intended to address some of the more common issues faced by consumers when making life insurance decisions. However, it does not address all the issues which may affect someone intending to purchase, replace, or change a life insurance policy.
