Is it wise to change life insurance company after paying more than ...

My mom has bought a life insurance policy more than 10 years ago from company xyz. and now my cousin is an agent of life insurance company abc, so she wants my mom to cancel her original policy and move to the company she represent. Is this a wise thing to do?

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  Barry auh2o 1:06 pm on October 18, 2010 Permalink
  

  It is a very dumb thing to do. The new policy will carry a much higher premium than the old policy.
  Also., there will be a new contestable period, during which fhe company can simply void the policy if they find out information that wasn’t on the application.
  This is called " trwisting, " that is, enticing a customer to drop an old policy in favor of a new policy. It is unethical, and in many cases, illegal.
  What will your mother gain? Abvsolutely nothing. What will your cousin gain? A new policy commission.

  It sounds like your cousin found a promisingm nbew career in selling life insurance, but after a new agent goes through cousins, aunts, uncles, etc, those eads suddenly become awfully hard to come by.

  This is a dumb thing to do. I urge her, just say NO!

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