DH and I have universal life insurance. Of course, years ago when we got it (and even now) our insurance agent is very excited about this product. As he should be, he makes good money from it. We'd like to change over to term insurance. At our last meeting, I honestly forget how much longer until the money the universal earned will reinvest itself and cover the premiums. We know we are under insured, and still want to switch. Dh and I were talking about this today, DS is teething so I did not call the agent today. If we cancel this, do we receive any money from it? I know of people that have "cashed out" their life insurance, but I don't really know what that means. I need to call and have him requote the figures we discussed, I also know not to cancel what we have until the other policy is in effect. I was just hoping with all we've paid, it was not money totally down the drain.

We just bought a 20 yr term policy and cancelled our universal life policy. We had to pay a fee, but we still got a good size refund. We got statements every month and it would have the value on there along with the surrender charge.

The insurance agent will tell you how much residual value is on the policy. S/he can then arrange to apply that money - all or part - toward a term life policy, if you want. Or you could shop around, purchase a policy then pay yourself back when you get the check from the universal policy payout.

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"Poor people work for their money. Rich people make their money work for them."

Just make sure you get the term insurance in place BEFORE you cancel the other!

Also, as for amount, I think they say the insurance coverage should be around 10x your annual salary!

I'm not much help with the other insurance (we have term). Just wanted to say good luck - term's for sure the way to go!

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Stay at home mom to my 3 boys... ages 4 1/2, 2 1/2 & 6 months!

I can do all things through CHRIST who strengthens me. Philippians 4:13

My DH & I are not happy with our policy either and wish we had a term policy. I never thought about cashing ours in and just assumed we wouldn't get any money back. So can you guys explain this to me? Do you get all the premiums you paid into it back? If it gets reinvested into a term policy does that mean it'll be paid up for awhile? Please help as I'm very interested in doing this! Thanks!