Having just had heart bypass surgery, George is more aware of insurance matters than he was in the past, and wants to consider replacing his current policy with a more "modern" policy. George's current policy is a participating whole life policy with a face amount of $100,000, a premium of $1,600, and a cash value of $34,000, This policy pays an annual dividend of $800. The new policy being considered is a universal life policy. This policy would have flexibility in premium payments, death benefits, and cash values. It would pay 5% interest and provide annual statements showing policy activity and earnings. In helping George assess his circumstances, what would you correctly advise him? His current policy has already had the front-end loads paid. His current policy might be his only option due to his current health. The new policy would be far superior to what he has. The new policy would have a lower cost over the long term