October 15, 2011


So the biggest question I get all the time is why?  Why do I need to change the savings/retirement plan that I have currently (and for many the answer is, because doing something…anything is an improvement over what you are doing, now)?  Why should I look at life insurance as a savings vehicle?  How does that even work?  Besides, as many point out, I know plenty of people who aren't doing it…

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October 14, 2011

The Basics of Life Insurance Part III Universal Life Insurance

Prior to booming interest rates from the later 70's and early 80's your life insurance options were pretty much term insurance and whole life insurance (and these nifty things calls endowment contracts that have sense gone the way of the dodo).  But, as interest rates started to skyrocket and insurance companies appeared to lag way behind, many began tough criticisms of the industry for offering such tiny returns compared to CD's and other interest based savings vehicles.  The industry maintained that it's payment of dividends accounted for the fact that policy loans did not change the dividend paid (essentially taking money out without taking money out) and required a smaller dividend payment.  Still, the spread was pretty great and a lot of people began taking large policy loans and placing the money into other savings vehicles with much better returns in the short run.

Some companies tried to combat the interest rate environment by changing the way in which they paid dividends.  The Guardian Life Insurance Company of America was instrumental in changing the payment of dividends by pioneering what is now known as Direct-Recognition to compensate for the interest spread.  They paid a higher dividend rate by addressing what all of the insurance companies were fearing, money leaving the contracts.  So, Guardian began a practice of paying higher dividends if the money stayed in the contract, and reduced the dividend on loaned values of the policy.

Others in the industry decided to go in a different direction.  Instead of changing up dividend treatment, they decided to create a new product.  A product that took the guarantees that Whole Life brought off the table, but allowed for an opportunity to make more money on cash value in the policy if interest rates continued their rally.  This new product was called Universal Life Insurance Read More…

October 12, 2011

New Direction Coming Soon

So the original intent of this was to have a informational resource that was updated regularly to promote the use of permanent insurance as a conservative allocation to one's portfolio.  To promote the infinite banking concept through a slightly less glitz and glamor fashion than the Nash and Yellen group.  With a much harder look at the mechanical nuts and bolts rather than the talking point sales-pitchy stuff that appeals more to insurance salespeople than it does the end user.

Today we are going to begin that process.  The basic informational stuff about life insurance is being removed–there's more than enough of that stuff floating out around the internet and we'll address important points as necessary.  We won't completely abandon the importance of basic life insurance planning, and we'll leave plenty of room to write on this issue as well.

October 11, 2011

The Basics of Life Insurance Part II: Whole Life

Known by a few different names, and probably the most tweaked product in the industry, Whole Life (aka straight life in older circles) has a several centuries history of offering guaranteed death benefit for the entire lifetime of the insured.  In the world of guarantees, nothing beats it, and it has been an anchor for conservative savings plans for just about as long as it's been in existence.  It's also one of the most hotly debated products in the insurance industry as opinions run wild about its overall usefulness compared to other products that exist today.  Read More…

July 29, 2011

The Basics of Life Insurance Part I: Term Insurance

The simplest form of life insurance is called Term Insurance.  Term takes it's name from the notion that it is purchased simply for a term (period of time), after which is it no longer renewable.  Not that long ago the general rule was term products were renewable to age 75 and that was it.  More recently this has been reviewed and some companies are offering term products that can be renewed past this date.  This is also governed by state insurance law so you should check on this for your specific state.   Read More…

July 26, 2011

Hello World: This Blog and the United States Share a Birth Month

It started on a cold dark night…

Sort of, actually more late afternoon/early evening, but this post is going up as we drag into an unseasonably cold evening even for New England.  Everyone has to start some where and here we are… Read More…


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