A caller to the show last week told me he’d been approached by his life insurance agent to rollover his universal life policy of almost 20 years into a new policy that would triple the death benefit.

Here’s the kicker: The insurance agent suggested he take the $45,000 of cash value that had built up and simply use it to eliminate all payments on the new whole life policy. Sounds like a no-brainer, right?

Well, maybe if you’re the agent pocketing the huge commission that sale would generate. A better and cheaper suggestion is to take the cash, and use $1,000 each year, to buy a $1 million term life policy with a level load over the next 20 to 25 years.

After you’re done paying for that, you’ll still have enough cash left over to purchase a long-term care policy once you hit your late 50s. If you’re worried about your premiums, many insurance companies now sell term life policies with return of premium clauses.

With practical, informative consumer advice, I’m Ilyce Glink, News-Talk 750 WSB