(MONEY Magazine) – The July article ''Don't Gamble with Your Life Insurance'' advised that ''you'll often take a loss if you swap a life insurance policy you have held for less than 10 years.'' The reason consumers find themselves in such a poor position for so many years is because of costs that are hidden in the premium. Traditionally, life insurance agents get commissions equal to 50% to 75% of the first-year premium. Their managing general agent or their regional manager receives an additional 10% to 20%. They also get expense allowances, / production bonuses, fringe benefits and the cost of recruiting and advertising.

It is not uncommon for these ''loads'' or expenses to run more than 100% of the first-year premium. Therefore, I would suggest that you caution your readers to request full disclosure of all acquisition costs charged to their premium so they can see where their money goes. Numerous A+-rated insurance companies offer no-load or low-load annuity policies that give the consumer excellent cash surrender value in the first or second year. Judith R. Maurer Tampa