Some life insurance policy
holders have fallen victim to a practice called twisting
or churning.
Churning often happens when people with cash value
policies are persuaded to convert their coverage to
a different policy, often one with a promise of better
benefits. The problem is that the cash value of the
original policy is raided in order to pay for the new
policy.
Consumers unaware of this practice, which actually
should be called malpractice, may not realize until
years later that the higher benefit
policy is actually worth only a fraction of the value
of the original policy.
Be sure to research any changes in your life insurance
policy before actually making them.
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