Archive for the Cash Value Life Insurance as an Asset Class Category


2016 Whole Life Insurance Dividend Analysis

  Since 2013, we have published the only public analysis on variation in dividends for major participating whole life insurance products.  This analysis is a better gauge on product dividend performance than traditional reporting that focuses on the absolute declared dividend announced by each company.

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Whole Life Insurance has a Strong Risk Adjusted Return – Historical Evidence

Three years ago this past Friday we published one of the most significant blog posts on this web site. This post, and a successor post we published last year remain some of the most popular content we’ve created. For those unfamiliar with the original article, it reported on real historical data provided by a whole life insurance […]

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2015 Operational Cash Flow Growth for Whole Life Focused Life Insurers

We’ve reported on operational cash flow among life insurers in the past and note that we hold this metric in high regard for a multitude of reasons. Our philosophy is that operational cash flow shows us true profitability of a life insurance company, especially among whole life focused insurers. Why is that? Well, it’s primarily […]

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Myth: Indexed Universal Life Insurance has Stock Market Exposure – Case Study

When we discuss indexed universal life insurance with new potential clients, they commonly mention that they already have stock market exposure, so they see no need to gain additional exposure to the market. I understand the impression they often have, but assuming that indexed universal life insurance gives you additional exposure to the market is a […]

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Whole Life Insurance Five Year Investment Income Trend

Investment income is a huge profit driver for life insurance companies. We’ve spent a lot of time analyzing and reporting on overall investment yield trends for life insurance companies, but that analysis only compares the raw yield insurers achieve on their managed asset pool.  It’s possible that a declining yield simple indicates a de-risking strategy. […]

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Five Reasons Whole Life Insurance is Better than a 529 Plan

The 529 Plan began to materialize in the mid 1990’s taking inspiration from prepaid tuition programs in the state of Michigan. Since the initial formation it has become the dominate recommendation among financial gurus for college savings in the United States—despite President Obama’s suggestion that we end the tax free distribution 529 Plans enjoy during […]

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The Power of Whole Life Insurance in a Down Market

A few weeks ago a client of ours (we’ll call him Ted to protect his identity) reached out to us looking to take a policy loan from a whole life policy he owns. A unique and, arguable rare, opportunity arrived on his door step (literally) and he needed cash. The interesting part of this story, […]

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Risk Adjusted Return for Life Insurance Assets – Whole Life Insurance

I personally take risk adjusted rate of return very seriously. My focus on it largely comes from the notion of taking calculated risks to achieve various levels of return. For example, one might make a killing placing his or her entire life’s savings into a pink sheet stock, but risk exposure relative to the anticipated […]

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Life Insurance as an Income Producing Asset with the Power of Leverage

We’ve talked a lot about using life insurance as an income producing asset. Many people stumble a bit when they first attempt to wrap their head around the notion of using “insurance” either as a place to save money or as an asset from which they can generate income.  I raised an eyebrow or two […]

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Case Study: Whole Life Insurance vs. Bond Strategy

We receive phone calls and emails every week from people looking to “de-risk” their portfolio and possibly add life insurance as a complement to their other investment and savings strategies. A comment that tends to trend among these good folks notes that while we’ve done a pretty decent job explaining the more esoteric aspects of […]

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