While strolling through the local wholesale club in town I noticed the newest TV’s on display. I wondered how many people during this holiday season are going to be upgrading their electronics. With the innovation of smart TVs, technology is getting better and is also shrinking in size. Kids today may never understand why television is called the tube.
The electronics industry is not the only industry with innovation. You may have not heard that life insurance companies are using a new mortality table to calculate the cost of insurance. On January 1, 2009 all insurance companies in the United States adopted the 2001 CSO (Commissioners Standard Ordinary) mortality table. But what does this mean for you? Great question! This mean if you have purchased a policy prior to 2009, you may be overpaying for the cost of insurance on your current policy.
Understandably, some people may not be in as great health as they were seven years ago. It is worth the time to check with your life insurance agent or the company you hold a policy through, however, to see if you could save money by upgrading your policy. I have helped many clients find a policy more suitable for their desired goals and save them premium dollars. The savings over a long period of time could be tremendous.
If your existing policy has cash value currently, you have the ability to move that money from your existing policy into a new policy with the 2001 CSO table. This is called a 1035 exchange. You can instruct the insurance company to move the cash value of the outdated policy into your new life insurance policy without the potential tax liability of withdrawing the cash completely.
I see many people throughout the year and have the same question; Have you updated your television in the last 10 years.. Why not your life insurance? I would be happy to sit down and discuss the options available to you. Being an independent agent, I have the ability to shop all the top carriers for you. Give me a call today or check out our upcoming seminars on life insurance.