Question for the Money Doctors
Question submitted on Sep 4, 2011.
QuestionI'm hearing that whole life insurance with a flexible rider is not good. How and where do I move the money?
First, understand that this is an almost imnpossible question to answer because I have NO facts. Age, income, marital status, etc.
All I can suggest is to do the transfer of existing balances a certain way (a 1035 exchange- IRS CODE) as opposed to asking for a check from the insurance company made out to you and then using those funds to buy insurance.
While it is possible that the policy you have "is not good" it may also be the best policy you can get (i.e. perhaps because of recent health issues you are uninsurable).
Speak to a few insurance professionals or, even better, financial professionals (ex: CPA/PFS). After you decide on the right product, shop around for a good balance between price, coverage, returns and quality.
DO NOT cancel anything until you have a new policy in hand! I wish I could provide more specific advice, but without a lot more information it's like telling the doctor "I heard certain medicines have bad side effects. Please prescribe me a medicine." Without a proper examination and diagnosis there is NO doctor who would write a prescription.
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