If your life circumstances or financial priorities change, you might contemplate modifying or exiting your variable universal life insurance. Aside from full surrender, there may be other options:

• Reduced Paid-Up: In some policies, you can opt to convert the policy to a reduced paid-up status, lowering the death benefit but eliminating or reducing future premiums. This requires that you have sufficient cash value to support the policy on its own.
• 1035 Exchange: This tax code provision (in certain jurisdictions) allows you to exchange one life insurance policy for another or an annuity, deferring any gains. This can be useful if you find a better policy or decide you want a different type of coverage, provided all conditions are met.
• Partial Surrender: Instead of giving up the entire policy, you might reduce the face amount to lower the insurance charges and keep part of the coverage in place.

Before making any such change, consider consulting professionals who can help you weigh the pros, cons, and potential tax ramifications.