As I hope I have helped you understand, the truth is that most products today are not in your best interest, but are designed to be in the best interest of the insurance companies. Most agents are honest, but misinformed, as to the truth and purpose of life insurance. Some are too wrapped up in the commissions.

Remember, "opinion is fact until challenged."

Many times a new product has too many advantages. The government steps in after the market is saturated, and the public doesn’t know the rules and benefits have changed. Agents see new product design as a way to recommend replacement of older policies with some new product that’s better.

The focus should always be on making the current product work for the client. Only when all other options are exhausted would a replacement insurance product be appropriate. Replacement, for the most part, is a new commission for the sales agent and a new cost for you, the buyer. You should understand all the ramifications of the new product before buying. Whatever you buy as a replacement product must move you forward toward your goals.

I always ask my clients why they bought the $25,000 or $50,000 face amount instead of another amount. You must ask yourself what economic evaluation process did the agent use to determine the face amount purchased? Was it just his goal to sell you that much? We don’t live in even amounts, so why should we receive a nice round value for our lives?

If you purchased a universal life insurance policy, ask the insurance company for an inforce illustration. That will give you a look at the present performance of the policy. You must keep the goals of the policy in mind (See the Life Insurance Goal Planning worksheet in Exhibit #2). The new projection should show you what adjustments you have to make to meet those goals. You may actually have to increase your premium payments to make up for lost interest or increased mortality costs.