Digging deeper, I found the problem: this was not cash value at all.

Instead, the column showing $79,000 in 10 years was labeled “refund upon surrender.”

This meant the only way to access that money was to cancel the policy entirely.

True cash value allows policyholders to borrow or withdraw money while keeping their policy intact.

But in this case, if my client ever needed funds, she’d have to surrender the policy, losing her $400,000 death benefit.

Even worse, the actual cash value in 10 years was only $13,000—and within two more years, it dropped to zero. That meant all of her cash value would disappear.

She had been led to believe she had nearly $80,000 available, but in reality, she would have had nothing.

How We Fixed the Problem

Luckily, my client was still healthy and had already qualified for new coverage. We used a 1035 exchange, which allowed her to transfer her policy to one that protected her cash value.



Her new policy:

• kept her $400,000 death benefit
• allowed her to access true cash value
• did not require a permanent disability to qualify for nursing home benefits

With this switch, she avoided losing all her cash value and secured a much better policy.

The Lesson: Always Review Your Life Insurance Policy

If she hadn’t reviewed her policy, she would have lost everything—her expected $90,000 in cash value, her ability to pay premiums, and eventually her entire life insurance policy.

The only way to prevent this from happening?

• Annual reviews. Every single year, check your policies.
• Ask questions. Don't assume numbers mean what you think they mean.
• Work with a professional. Someone who knows what to look for can save you from costly mistakes.

I hope this case study helps you understand the importance of reviewing your life insurance policy regularly.

Don't leave your life insurance to chance. At Biaggi Life, we put your best interests first, just like we did for this client. 

If you want expert guidance from someone who truly looks out for you, book a virtual meeting today and take control of your financial future.