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For those who can, it's important to also appreciate that successfully qualifying to go from one policy to another - chasing the illustrated appearance of best price - also has the immediate cost of surrender charges on the old policy, new sales commissions, and yet more surrender charges to be imposed if there's yet another round of replacements in the future. It's quite likely that the much touted Magnum Opus policyholders will be split into those who can qualify to "upgrade" and those who can't. The important question to ask: What will happen 3-5 years from now when Magnum Opus UL is in turn succeeded by Magnum Opus ULTRA UL in the ever spiraling competition of policy sales?

For the most part, homeowners insurance companies aren't intentionally "baiting and switching." Let's face it: Virtually nothing in life works out exactly as planned. Ordinary income taxes are assessed on the excess of gross cash value over net premiums paid - without regard to policy loans diminishing the surrender value. The same could hold true for a Whole Life policy that has been heavily borrowed on to pay the required premiums and dividend scales have not been sufficient to help out.

If a UL or VUL policy has so badly deteriorated due to external economic forces (or simply the failure to pay funding premiums for a number of years), it indeed may make more sense to buy a new policy than to attempt to put the older policy back on its theoretical cash value curve. Yet there "are" numbers that should reasonably be taken into account. Recall the usefulness of illustrated numbers: unless they're guaranteed, you can't rely on illustrated values whose underlying charges can be changed from those originally assumed by the insurance company. If the recommendation or consideration to change policies is based on the "numbers," you may already be in trouble. The lesson learned: Every "new" policy will become an "old" policy in the same way that a showroom car becomes a used car as you depart the dealership.