Brandon Roberts 
The guaranteed insurability riders, also known as the future purchase option, future increase option, guaranteed purchase option, or guaranteed increase option rider, allows the insured of a life or disability insurance policy to purchase additional coverage without going through a new medical exam. This rider can help an insured purchase additional amounts of insurance when …
Life insurance loan interest causes a lot of misunderstanding. The interest is a charge assessed by the insurance company on any outstanding loan balance a policyholder has against an insurance policy’s cash value. That seems simple enough, but why does the insurance company charge interest? How much interest do you have to pay on a …
Modified life insurance, also commonly modified whole life insurance, is a unique form of permanent life insurance that offers a much lower premium for the first few policy years in exchange for a higher premium after an introductory period. The spirit of this type of life insurance is budget-friendliness. The target market is families where …
What is a Modified Endowment Contract? A Modified Endowment Contract (MEC) is a life insurance policy that fails the 7-pay test established by the Tax and Miscellaneous Revenue Act of 1988 (TAMRA). Failure of this test reclassified the life insurance policy, which comes with several changes to the taxation of the insurance contract. It’s important …
Cash value life insurance, also known as universal life or whole life insurance, is a form of life insurance that builds cash value. You can use this cash value for a number of different options including pay premiums due, withdraw a portion of the cash to use as retirement income, or surrender the entire policy …
Indexed universal life insurance policies use a stock market index to set the interest payable on the policy’s cash value. This feature has a limit (the industry official calls it a cap) above which the market index returns will not affect the interest payable by the insurance company. This indexing feature plays a crucial role …
An IUL policy is an acronym for indexed universal life insurance. The history of universal life insurance goes back to the 1970s but the advent of IUL is fairly recent. In fact, what we now know as the modern IUL policy only dates back to the mid-1990s. IUL policies use an index, usually a stock …
A whole life insurance policy illustration will include details, such as the life insurance coverage amount, the annual premium requirement, the guaranteed cash value, current dividend payment, and the year-over-year increase in cash value. There are also times that you might see a column on one of the internal pages of a whole life policy …
Bank on Yourself® is the creation of Pam Yellen and is a process of using whole life insurance as a means to finance major purchases. The claims made by Bank on Yourself® suggest that following the program will unlock hidden wealth secrets employed by savvy investors and business people. But does it work? We get …
Whole life insurance paid-up status occurs when you do one of two things. First, you reach paid-up status when you make the required number of premium payments stipulated in the insurance contract. Second, you can electively create a paid-up whole life policy by triggering the reduce paid-up nonforfeiture benefit of a whole life policy. How …
