Is Old Whole Life Insurance Better than New Whole Life Insurance?

There’s no secret that continuously low interest rates cause a struggle for life insurers and this can have a negative impact on insurance products that accumulate cash value.  However, lower market interest rates negatively impact all financial tools that use fixed interest rates as a savings mechanism–think certificates of deposit, bonds, and money market accounts.  …

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Evaluating Whole Life Insurance Policies

Why you are Evaluating your Whole Life Insurance Policy all Wrong

When purchasing whole life insurance, the buyer makes a long-term commitment to a strategy and–to a slightly lesser degree–an insurance company.  This notion appears very simple on its face.  It makes sense and we can follow the logic pretty easily, or at least assume we can. But a lot of people struggle with the inter-temporal …

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Bonds Suck! You Should Buy Whole Life Insurance Instead

Bonds Suck! You Should Buy Whole Life Insurance Instead

Following up on the Ernst & Young piece about incorporating whole life insurance and annuities into a retirement plan, we noted that we generally agreed with the observation EY made about whole life insurance and annuities being good substitutes for bonds.  We’ve held this belief for a long time.  But we should quantify what makes …

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Congress Wants to Pillage Your IRA

Congress Wants to Pillage Your IRA

A proposed Bill in the House of Representatives seeks to put new rules and limitations on IRA’s as well as traditional qualified retirement accounts.  This Bill seeks to raise revenues for various government programs in the name of ending a decade’s old practice of “subsidizing retirement savings once account balances reach very high levels.” The …

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Historical Whole Life Comparison

Old Whole Life Page 1

Over the course of the past several weeks, we looked at real whole life policies and evaluated their real policy performance.  We specifically looked at cash value accumulation comparing original projections of non-guaranteed values to the actual performance of the policies.  Every policy spans a timeline of around 10 years.  we used internal rate of …

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