This can depend on various factors. If you have had your policy
only a short time,replacement probably would not be advised.
You may suffer surrender penaltiesthat would take too long to
recoup. It could be very wise to replace olderuniversal life
policies, especiallyif you plan to keep the policy for quite a while
longer. Here's a true lifeexample: Mr. X has had a universal life
policy for14 years. He is 48 yearsold. His death benefit is $100,000.
He is paying$60.00 per month into hispolicy, and he has a loan of
$2,310. If he continuesthepolicy as it is,basedon projected and
guaranteed values, it will lapse in about13 years. That means it
will just end - no death benefit and no cashvalue. His wife is also
on the policyfor a $25,000 benefit. If hewere to change to an
updated universal life policy, WITHOUTPAYING ANY ADDITIONAL
PREMIUM,he could do the following:
1. Eliminate the loan.
2. Extend his $100,000 death benefit from 13 years to 35 years.
3. Provide a death benefit of $50,000 for his wife.
4. Have a projected cash value of $13,000 at age 65 instead of 0.