Is replacing your policy actually cheaper?
The headline number in any replacement pitch is the monthly premium difference. This calculator takes your current monthly premiums minus the premium you would actually pay after the switch, multiplies that by the months left, and adds any cash surrender value while subtracting the upfront cost of the new contract.
Enter the new premium itself in the second box rather than the amount you want to save. If the result is negative, the replacement costs more each month. An optional return assumption shows what the monthly difference could grow to if you invested it instead.
Basis and date — tax-free transfers of cash value are governed by 26 U.S.C. sec. 1035, and most states apply NAIC-based replacement regulations that require a comparison notice and a free-look period. Content reflects September 2026; state rules vary.
This tool compares money only and is not a recommendation to cancel or buy any policy. A replacement can restart contestability and suicide exclusion periods, reprice the coverage at your current age, and fail underwriting if your health has changed, so review it with a licensed adviser.
Frequently asked questions
The premium you would actually pay after the switch, not the amount you hope to save. The calculator subtracts it from the current premium, so a negative monthly figure means the replacement costs more, not less.
Usually yes. A newly issued life policy typically starts a fresh contestability window and a fresh suicide exclusion, commonly two years, during which the insurer can investigate and deny a claim. Confirm the exact periods in the new contract.
Section 1035 of the tax code lets you move cash value from one life or annuity contract into another without recognizing gain immediately. Surrendering for cash instead can create taxable income, so ask the carrier before cancelling.