You can easily convert your term life insurance to whole life insurance. And you can do so quite easily with a phone call to initiate it with your agent, a brief bit of paperwork, and a little time. The good news is that you will not have to jump through a series of difficult hoops …
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 …
If you own a business, you need a clear template to follow for your buy-sell agreement that details the triggering events, how you will fund it, the agreed-upon value of the business, and the structure of the arrangement. But what’s even more important, is that you need to be sure that you fund the agreement …
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 …
The cost of a $100,000 life insurance policy could range from $8/month to well over $100/month. If you are looking to find out exactly how much a $100,000 life insurance policy costs the exact answer will depend upon your age, your health, and what type of insurance you would like to buy. In general, the …
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 …
The Modified Endowment Contract is mostly an unfavorable reclassification of a life insurance contract that strips it from most of the tax preferential features cash value life insurance enjoys. This includes: FIFO distributions Tax-free loans Tax-free collateral assignments There are several subtle but important tax consequences of owning a MEC. A big and often overlooked …
