IPB 087: Listen Carefully, We Have Something Important to Tell You About Life Insurance

 

Often times, understanding the power of cash value life insurance requires a paradigm shift.

It's not all that complicated really, just not entirely comparable to anything else.

A vast majority of folks that we talk with have some sort of vernacular when it comes to investing, saving or building their financial plan. They understand terms like “expense ratios” and the importance of identifying them.

But life insurance throws a curveball at most people because the terminology is different and to make it worse…the same function will have different names from one company to the next.

All but making comparison in any sort of apples-to-apples way, impossible.

How do we get around that…???

Listen carefully.

2 thoughts on “IPB 087: Listen Carefully, We Have Something Important to Tell You About Life Insurance”

  1. I enjoy your dialogue and insights. Do you like to use IRRs on both CV and DB to compare well funded plans? It seems a comparison of these 2 IRRs around life expectancy gives you a good feel for the spread cost and potential returns.

    You can also then try to judge whether a company is being more conservative or aggressive than another in its projections.

    Reply
    • Hi Chris,

      IRR comparison would very much depend on one’s stated purpose to own life insurance. This being said, we hold several other factors equally important if not more important to any sort of IRR projection. It certainly helps cut shorten the list (i.e. companies falling well into the bottom of the list are pretty immediately rejected).

      Reply

Leave a Comment