What does the term "twisting" refer to in life insurance?

Twisting refers to the unethical practice in which an agent persuades a client to switch from one insurance policy to another based on misleading or dishonest information, often resulting in a disadvantageous situation for the client. This could involve the agent exaggerating the benefits of the new policy while downplaying or omitting crucial details about the existing policy. The primary concern with twisting is that it can lead clients to lose valuable benefits or face unfavorable terms due to their hasty decision to change policies.

In the context of life insurance, this practice undermines the trust necessary for an effective client-agent relationship and can create long-term financial implications for the client. Therefore, understanding twisting is crucial for both clients and agents to ensure that policy changes are made in the client's best interest and based on accurate information.