Brandon Roberts 
The return of premium rider (sometimes simply ROP) is a life insurance feature that refunds all the premiums the policy owner paid upon meeting certain criteria. The most common example of this feature is the return of premium term life insurance policy. For return of premium term life insurance, the policy owner receives all premiums …
Dividend recognition deals with how a life insurance company pays dividends to policyholders when they take loans out against their policies. The two options are non-direct recognition (where policyholders receive the same dividend regardless) and direct recognition (where policyholders receive an adjusted dividend when a loan is outstanding). For years insurance agents argued the virtues …
Most states define insurance rebating as an offer or inducement an agent/broker uses to get a prospective customer to buy an insurance policy where the inducement falls outside of the features of the life insurance contract. For example, if an agent offers to share some of his/her commissions earned on the policy sale with the …
The interpolated terminal reserve is a mid policy year calculation on a life insurance policy’s reserve used most often to determine the market value of a life insurance policy. The value of the interpolated terminal reserve is something close to the policy’s cash value, but the two are not the same. Because life insurance policies …
Life insurance can use several industry-specific terms that confuse laypeople. This can cause confusion about what specific features of a life insurance policy do. For example, what is the difference between a life insurance policy’s face amount and cash value? The really simple answer is that the face amount of a policy is simply its …
Decreasing term life insurance is a special form of term life insurance designed to cover a borrowing obligation. It’s rare for life insurance agents/brokers to sell this type of life insurance. Instead, loan officers such as mortgage brokers and F&I managers at car dealerships are the people who traditionally sell this type of life insurance. …
In 2013, we published our first historical whole life dividend analysis. We were the first website to go beyond just a basic table of dividend data because we knew the typical table wasn’t enough to make any meaningful observation about dividend data. This year, we are updating the analysis process to introduce more advanced and …
The key difference between a life insurance broker and a life insurance agent is the employment arrangement with an insurance company. Brokers do not have an employment arrangement with an insurance company and have no authority to act as a representative of the company. Brokers merely act as relationship middlemen matching prospective insurance buyers with …
Buying whole life insurance for your children seems like a good idea. It acts like a savings account you set up for them that one day they can use and take advantage of the cash value in the policy. But there are several logistical hurdles to juvenile life insurance that you need to understand before …
A second to die policy or survivorship life insurance is a life insurance policy that insures two lives and pays a death benefit once both insureds die. This type of life insurance costs far less than traditional life insurance insuring just one life. It has a specific life insurance planning application, but some agents look …
