Archive for the Life Insurance Category

Sequence of Returns Risk and Indexed Universal Life Insurance

We’ve addressed the subject of sequence of returns risk in the past. We’ve even discussed it on the new Insurance Pro Blog Podcast. This subject has become a hot topic in more recent years as financial advisors now struggle to build retirement income plans for their clients and face the problem that few, if any, […]


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 […]


Argument Against Permanent Life Insurance: They Steal your Cash when you Die

  This weeks edition of senseless arguments levied against whole life insurance and universal life insurance is one my very favorites. Even though I’ve addressed this topic before, I couldn’t pass it up knowing I’d be writing a series on the most common “complaints” used to dissuade the buying public from these products. I do […]


Argument Against Permanent Life Insurance: Good Returns take too Long to Materialize

  Next up in our installment of arguments against permanent life insurance is the notion that returns are negative in the beginning and the good stuff simply takes too long to materialize. If you look at a life insurance proposal ledger, you’ll notice that there is indeed a negative return during the early years. The […]


Argument against Permanent Life Insurance: Low Rate of Return

The rate of return argument against permanent life insurance focuses mostly on an irresponsible comparison of dissimilar asset classes. Chances are good that most of you reading this understand that there is a relationship between the risk of an asset and it’s return; the two are positively correlated. This means the riskier an asset is […]


Argument against Permanent Life Insurance: High Commissions Paid to Agent

It seems one of the biggest reasons you should not buy whole life or universal life insurance is because the agent or broker who sold it to you will get paid to do so. At least this is a claim made in almost all of the articles ever written in an attempt to steer you […]


Top Five Arguments against Permanent Life Insurance…Debunked

  Over the next month or so, we’re going to address the top five most common arguments against permanent life insurance. These are the arguments made by journalists and other hobbyists who spent that one weekend reading a book that had a chapter on whole life insurance and suddenly dubbed themselves supreme commander of life insurance […]


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.


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