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 …
Keep ReadingBut What About the Life Insurance Loan Interest?
You should buy high early cash value life insurance if you have a need or desire to quickly accumulate cash value in your life insurance policy. After reading that, you may be asking yourself, “why wouldn’t everyone want to grow their cash value as quickly as possible?” That’s a fair question and one with a …
Keep ReadingShould You Buy High Early Cash Value Life Insurance?
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 …
Keep ReadingWhat is Modified Life Insurance and Should you Buy it?
As the proverbial clock marched towards midnight in 2020 Congress fought over how to deliver a second round of stimulus in the U.S. The end result was a watered-down version of the legislation passed earlier in the year in terms of cash payments to certain Americans, but the bill contained numerous provisions that, like most …
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 …
Keep ReadingA Complete Guide to the Modified Endowment Contract (MEC)
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 …
Keep ReadingCan I Convert My Term Life Policy to Whole Life?
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 …
Keep ReadingCash Value Life Insurance, What You Need To Know
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 …
Keep ReadingHow Much Does a $100,000 Life Insurance Policy Cost?
