Archive for the Life Insurance Category

Should you Stop using Life Insurance Illustrations to Compare Policies?

  When it comes to evaluating life insurance contracts for a potential purchase, a common tool used in analyzing policies is what the industry calls an “illustration.” The illustration is several pages of policy feature details and numerical details projecting policy values to the maturity date of the policy (generally the insured’s age 120 for […]


Do 80% of Whole Life Policyholders Cancel their Policies?

Spend anytime looking around the internet for reasons not to buy whole life insurance and you’ll inevitably land on pages claiming that 80% or more of whole life purchasers cancel their contracts. The inference here is that with such a high rate of cancellation those who bought before you learned something you’ve yet to uncover, […]


NIRS: Rising Cost of Long Term Care Biggest Obstacle in Preparing for Retirement

The National Institute on Retirement Security released data during the first quarter of this year looking at how American’s view retirement and specifically retirement preparedness (or the lack thereof). The outlook is grim.


2015 Whole Life Insurance Dividend Analysis

In 2013 we released the industry’s first public analysis on variation in dividends for major participating whole life insurance products. This analysis focuses on variation and trend of declared dividend interest rate at the seven most competitive life insurers who issue participating whole life and will publicly announce/disclose their dividend interest rate (more on this point […]


An Indexed Universal Life Insurance Success Story

I was recently reviewing an indexed universal life policy issued seven years ago. We do a lot of reviews for life insurance policies (especially the ones we ourselves put in force for people) and such reviews look at performance to date as well as a comparison to the original policy projection to review how things […]


Five Year Asset Growth Indexed Universal Life Companies

Insurance company asset growth is a measure of overall company success in accumulating assets. It’s a metric that certainly indicates positivity when the trend is upwards, but there are a few nuances that we have to keep in mind before ambitiously declaring a winner. Insurers can accumulate assets either through the new business process (i.e. […]


2015 Whole Life Focused Company Cash Flow Trend Analysis

Operating cash flow is the cash generated by an insurance company prior to the inclusion of investment income generated by managed assets. Under insurance statutory accounting rules, this is profits generated after deducting operating expenses. Insurers that have issued participating policies can cover planned dividend payments with operating cash and/or investment income. We look at […]


Who are Our Clients?

  After we published the no contest between whole life and term life insurance article a few weeks ago many of you apparently found a side comment I made very intriguing. We’ve received more emails asking about our typical clients than any other subject since that article went live. I’ve resisted writing this post for years. […]


The Over-Loan Protection Rider

For years, the task of creating income from a life insurance policy was all about balancing the growth of policy loans against the growth of policy cash values. Assuming the policy cash values grew at a faster pace than the loan balance, everything was a-okay. But what happens if the loan balance outpaces the growth […]


There is no Whole Life vs. Term Insurance Debate

An aspect of the financial services and insurance industries that has always bugged me is this notion that there is some sort of debate over which life insurance product someone should buy. To set the stage, the discussion generally notes the differences between term life insurance and whole life insurance (mostly harping on “price” paid […]

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