Why Does Universal Life Insurance Have Such Low Guarantees

Why Does Universal Life Insurance Have Such Low Guarantees

When looking at universal life insurance–especially in the context of its ability to accumulate cash value–and comparing it to other life insurance products like whole life insurance, people often note that it appears to have much lower guarantees.  In fact, here’s an excerpt from an indexed universal life insurance proposal that highlights said low guarantee:Now, …

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Why Life Insurance Works so well for Retirement Income

Why Life Insurance Works so well for Retirement Income

Life Insurance used to generate retirement income is a slightly more advanced subject within the world of life insurance and financial planning. The stock jockeys hate it, and the life insurance agents love it. No surprise there. But is there something that life insurance brings to the table that is truly special? Or are you …

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Universal Life Insurance Expense Breakdown

Universal Life Insurance Expense Breakdown

Universal life insurance is characterized by its flexibility and transparency of expenses.  Unlike whole life insurance, where expenses operate under the cloak of proprietary information, we can easily call up the expense breakdown of universal life insurance policies and see exactly where the money goes. For universal life insurance policies, expenses fall into four main …

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How Does Infinite Banking Fare During High Inflation?

How Does Infinite Banking Fare During High Inflation

With news sources reporting every higher inflation measure–and ample signs of prices increasing across the country–it’s understandable that many people are seeking ways to personally combat the effects of inflation on their lives.  The Infinite Banking crowd appears ready to pounce on this topic and celebrate their ethos as the solution to the problem.  Philosophically, …

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Dividend Recognition is Going to Get Interesting

Dividend Recognition is Going to Get Interesting

Dividend recognition dictates the policy a life insurance company has regarding what it does in the event a policyholder takes a loan out against his/her whole life policy.  If the company practices non-direct recognition then it does not adjust the dividend in the event there is a loan against the policy.  The company pays the …

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How to Protect Yourself When Retiring in a Down Market

How to Protect Yourself When Retiring in a Down Market

Market corrections happen.  Given their frequency, the chances are very high that you will live through a few of them once retired.  This can be a scary prospect for a number of people.  According to Charles Schwab Research, and reported on by Forbes, retirement accounts that cannot keep up with income needs is one of …

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Should You Cancel your IRA to Buy Life Insurance?

Should You Cancel your IRA to Buy Life Insurance?

There are life insurance agents, motivated by various marketing organizations, telling people that their taxes are going up.  Way up.  Mostly because Social Security is bankrupt.  They even have a super assertive and amazingly authoritative person to reference.  David Walker, the former U.S. Comptroller General…he’s been complaining about SSA for years.  In fact, he predicted …

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Whole Life Still Gets Better with Age

Whole Life Still Gets Better with Age

In our 10+ years of talking about life insurance on the internet, we’ve mentioned a few times that cash value life insurance gets better with age.  It’s a simple idea, but it comes with significant implications as we age.  Our vulnerability increases as we get older, and this is when life insurance is at its …

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