Financial Recovery: Appendix II, page i

What insurance companies or their representatives usually say when faced with replacement of their company's "legal reserve" (cash value) policies:

YOU WILL LOSE GUARANTEES
  1. Premiums will be higher.
  2. New suicide and contestable clauses.
  3. Won't receive back all money paid into the old policies.
  4. Will lose nonforfeiture provisions in present policies (reduced paid-up and extended term insurance).
  5. New policies build up lesser cash value (or none at all).
  6. If you invest your cash value, the future value of the investment will not be guaranteed.
  7. You will not get "dividends" on the new policy.

THERE ARE OTHER ALTERNATIVES

  1. You can borrow on you policies to pay premiums (and maybe pay no premiums at all).
  2. You can take a reduced amount of fully paid-up insurance.
  3. You can have your present insurance become an extended term policy.
  4. I've been meaning, anyway, to tell you about a great idea called minimum depositing, "mimi-dipping", which lets you keep your great cash value policies.

PERSONAL

  1. They are unethical (thieves, bandits, etc.).
  2. They are suspects.
  3. Insurance companies do not like them.
  4. Why didn't you buy term from us, or, I can sell you a better program yet.

Return to The Informed person page