The life insurance company is requesting my other whole life insurance policy (which I am canceling once this is in place).
They tell me it is state law (I'm in New Jersey). Is this for real? I hate telling big companies more than there need to know.
You're only eligible to buy so much life insurance coverage.
Usually you are limited to buying 20-25 times your annual income.
That's reason number one. Reason number two is that you're canceling the other life insurance policy, so by law they have to notify the other life insurance company that this is occurring.
This is a common question and asked of all applicants for life insurance coverage - do you have any other life insurance? If so, tell us with who and how much life insurance you have?
They want to make sure you are not over-insured, and that all life insurance carriers you have insurance with are properly notified if you are replacing existing life insurance coverage with a new plan.