Life Insurers Focus on Safety Not Risky Returns

Life Insurance Safe Investment

It’s no secret that interest rates are not in a place that life insurers favor.  With interest rates so low, one might think that life insurers will move to more exotic investment ideas to recoup the returns they once had when buying bonds yielded near double digits.     It makes a lot of sense, …

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Likely Changes Coming to Indexed Universal Life Insurance Illustrations: Actuarial Guideline 49 Updates

Actuarial Guideline 49 Updates Indexed Universal Life Insurance

In 2015, the National Association of Insurance Commissioners’s (NAIC) Life Actuarial Task Force (LATF) codified new rules for life insurance illustrations with indexing features.  Actuarial Guideline 49 (AG49) placed certain restrictions on interest rate assumptions companies can make when projecting policy values inside their indexed universal life insurance policies (or any life insurance policy that …

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Comparing Permanent Life Insurance Policies: The Linton Yield Method

Linton Yield Method

There are numerous ways to compare cash value life insurance policies. Some of them are pretty well recognized though of relatively little use like the Net Cost Surrender Index. Others are known within the circles of more advanced practitioners but sparsely discussed because of their complexity both from a conceptual and applicable point of view. One such comparative process that falls into the slightly more advanced category is the Linton Yield Method.

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Is the Cash Surrender Value of Life Insurance Taxable?

The taxability of life insurance cash surrender value causes much confusion.  Agents often extol the tax-free nature of life insurance.  But the marketing brochures often have numerous footnotes on the tax subject. So is your cash surrender value of life insurance taxable?  The answer is yes.  The answer is also no.  The truth is, asking …

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