Following up on last week’s article regarding whole life insurance and improved market conditions, we’re bringing the same question up about indexed universal life insurance this week.
Since we already covered some of the more intangible issues with this consideration last week, we’ll skip most of that this week (except for one nuance regarding indexed universal life insurance) and instead focus more on the returns we’d anticipate seeing if conditions improve and remain improved.
We’ve decided there are a number of more elementary topics that we’ve not discussed here and in the interest of making the Insurance Pro Blog as great a resource as possible on the topic of insurance, we’re going to turn Friday’s into a day where we talk about more basic topics in the insurance and financial planning arena.
The 1035 exchange is a very fundamental subject with which pretty much any insurance agent or broker has a strong familiarity. It’s a foundational insurance license exam topic and most agents/brokers have handled a transaction or two involving a 1035 exchange.
That’s all well in good, but what exactly are they, and what practical use do they bring to the table? Are there additional considerations about 1035 exchanges that often go overlooked? And when is it best to ignore it?
Over the past year or so, we’ve been hit with this question quite a few times:
If the market rally keeps up, how long before all the people who’ve been buying cash value life insurance as an alternative asset decide it’s time to rush back into stocks?
So, today we decided it was time to address it. Actually this is part 1 of a two part series that we’ll be doing on this topic. The first part will focus exclusively on what the stock market rally and subsequently higher investment returns means for participating whole life insurance.
Next week, we’ll focus on how this all effects universal life insurance.
I think what people are really asking us is –are we worried that a continued rise in the market will lead people away from purchasing cash value life insurance? Read More…
It’s been a pretty good run for whole life insurance over the course of the last five years. 2008 scared the pants off many Americans and has reminded us all that maybe being an “investor” isn’t all it’s cracked up to be.
As the blood pressure among our investment salesmen and women slowly rises following that last statement, allow me to take a moment and discuss a question we’ve received a lot lately:
If the market continues to rally, and history does end up repeating itself, will whole life insurance fade into the background just as it did throughout the 90’s?
The answer may surprise you…
Continuing on with our theme of the the past few weeks, we’re going to cover another of those topics that would have probably been really useful for our community about 60 some odd episodes ago. Oops…sometimes we get all excited in talking about things that we generally regard as more interesting and in doing so we totally step right over the more obvious topics that might actually help people.
That being said, we extend our apology for missing this and we’re diving head first into these sorts of topics now. Also, we’d like to ask if you have any suggestions or topics that you’d like for us to cover, please let us know!
Now, let’s get into today’s topic and help you figure out just how much life insurance should you buy? Read More…
Oops!! Not sure what happened with our other post today…but hopefully it works this time. Thanks for your patience.
As a form of cash value life insurance that can be manipulated for asset building purposes indexed universal life insurance has many coveted features. But just like we noted in the whole life insurance company asset yield comparison it’s wise to take a moment and look at company asset yield performance as an indicator for company strength to maintain the yields we’re assuming.
While it’s not the whole story, the yield on assets under management can help indicate a company’s financial fitness in terms of being able to maintain current caps on its indexing account, which affects how well the policy, will perform longer term. Read More…
The Guardian Life Insurance Company of America has announced its plan to pay $776 million in dividends to its participating life insurance policyholders.
The $776 million dollar payout is a decline from last year’s $805 million total payout.
But what does this mean for the dividend interest rate?
The Pennsylvania Mutual Life Insurance Company announced today its plans to pay $33.2 million in dividends to its participating policy holders in 2014.
This payout represents a 7% increase in the total amount of dividends paid to Penn Mutual policy holders.
And what about the dividend interest rate?
Principal National Life has released its product for the indexed universal life market. Indexed Universal Life FlexSM is the name of the product and it carries some interesting features including an S&P 500 Total Return indexing fund (i.e. taking dividend reinvestments into account, this is a first for the indexing world).
We’ve only taken a cursory look at the product so far, but here’s what we like and don’t like about it.
New York Life has announced its plans to pay $1.43 billion in dividends to its participating policy holders. This dividend payout is an increase of $109 million over last year.
In a very quiet announcement, the company reported on a number of positive sales results of various products–including 10% sales growth of its whole life product through Q3.
What does this mean for the dividend interest rate?