How does churning generally affect consumers?

Churning refers to the practice of a financial adviser or insurance agent recommending clients exchange or replace an existing insurance policy with a new one, often for the agent's own benefit through commissions, rather than any real advantage for the consumer. This practice generally leads to unnecessary expenses without added benefits because consumers may incur surrender charges, higher premiums, or new waiting periods, while receiving little to no improvement in coverage or value.

Instead of enhancing financial security, churning can detract from it by putting clients in a less favorable financial position and causing confusion over policy management. The promise of higher death benefits or simplified management is often not realized, as the policies may not provide meaningful improvements over existing coverage. Therefore, option B accurately captures the negative impact of churning on consumers, highlighting that they may end up spending more money without receiving any tangible benefits in return.