Category Archives for Cash Value Life Insurance as an Asset Class

TEFRA DEFRA TAMRA: How Taxes Effect Life Insurance

Life insurance enjoys some unique tax benefits, but it also faces limits imposed by legislation we know as TEFRA DEFRA and TAMRA.  These pieces of legislation established specific guidelines as to what

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Whole Life Insurance has a Strong Risk Adjusted Return – Historical Evidence

  Three years ago this past Friday we published one of the most significant blog posts on this web site. This post, and a successor post we published last year remain some of the most popular content

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Myth: Indexed Universal Life Insurance has Stock Market Exposure – Case Study

When we discuss indexed universal life insurance with new potential clients, they commonly mention that they already have stock market exposure, so they see no need to gain additional exposure to the

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Five Reasons Whole Life Insurance is Better than a 529 Plan

  The 529 Plan began to materialize in the mid 1990’s taking inspiration from prepaid tuition programs in the state of Michigan. Since the initial formation it has become the dominate recommendation

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The Power of Whole Life Insurance in a Down Market

  A few weeks ago a client of ours (we’ll call him Ted to protect his identity) reached out to us looking to take a policy loan from a whole life policy he owns. A unique and, arguable rare, opportunity

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Life Insurance as an Income Producing Asset with the Power of Leverage

  We’ve talked a lot about using life insurance as an income producing asset. Many people stumble a bit when they first attempt to wrap their head around the notion of using “insurance” either

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Case Study: Whole Life Insurance vs. Bond Strategy

  We receive phone calls and emails every week from people looking to “de-risk” their portfolio and possibly add life insurance as a complement to their other investment and savings strategies. A

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An Indexed Universal Life Insurance Success Story

I was recently reviewing an indexed universal life policy issued seven years ago. We do a lot of reviews for life insurance policies (especially the ones we ourselves put in force for people) and such

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2015 Whole Life Focused Company Cash Flow Trend Analysis

Operating cash flow is the cash generated by an insurance company prior to the inclusion of investment income generated by managed assets. Under insurance statutory accounting rules, this is profits generated

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Paid Up Additions: How to Create Flexible Whole Life Insurance

The fixed premium in whole life insurance gives many people a fear of commitment. But, it doesn’t have to be this way. You need not approach whole life insurance with apprehension. The annual premium

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The Myth of the Rising Cost of Universal Life Insurance

For years, those who favor whole life insurance have told us that universal life insurance has an evil side. The product with an optimal expense structure that affords the policyholder ample opportunity

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7 Reasons to be Wary of Indexed Universal Life Insurance? A Response to Bank on Yourself

Pam and friends over at Bank on Yourself® released a blog post detailing the reasons to be wary of Indexed Universal Life Insurance complete with a video to further emphasize their point. It comes as

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Proper Assumptions about Indexed Universal Life Insurance Income

Using indexed universal life insurance for retirement income comes with a certain degree of skill and responsibility that shouldn't be overlooked. The liberty an agent or broker can exercise over assumed

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Indexed Universal Life Insurance: The White Coat Investor Responds

Last week we published a critical piece regarding a recent review of indexed universal life insurance that showed up on Jim Dahle’s website The White Coat Investor. Jim took our criticism seriously

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Is Indexed Universal Life Insurance Just what the Doctor Ordered?

Most of our readers and clients are familiar with the White Coat Investor—a web site started a few years ago by Jim Dahle, a physician who practices Emergency Medicine. I’ve talked about Jim’s work

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Even Bad Whole Life Insurance has worked out Pretty Well

Bad whole life insurance, the stuff that isn’t designed the way we suggest it should be, sometimes catches fire for its so-called poor returns. Those with something to sell you that isn’t life insurance

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Why Life Insurance Policy Loans Help You Save Money

Life insurance policy loans are a long standing feature of cash value life insurance. And this feature can be a very powerful financial tool at your disposal when used correctly. I would even argue that

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Can you Invest Better than an Insurance Company?

The investment sales world is often interested in convincing us that their products are superior, but when proof of superiority is lacking one opts for a common secondary method…bad mouthing the competition.

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Why the Blended Whole Life Idea is Conceptually Perfect, but sometimes Practically Flawed

Blended whole life insurance has long been a mainstay subject at the Insurance Pro Blog. Dare I go so far as to say it’s the subject that acted as the catalyst for the site’s existence (that might

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If the Market Rally Continues is Indexed Universal Life Insurance Dead in the Water?

Following up on last week’s article regarding whole life insurance and improved market conditions, we’re bringing the same question up about indexed universal life insurance this week. Since we already

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If the Market Continues to Rally, is Whole Life Insurance Dead in the Water?

It’s been a pretty good run for whole life insurance over the course of the last five years. 2008 scared the pants off many Americans and has reminded us all that maybe being an “investor” isn’t

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Flexible Paid-up Additions Riders: When a Paid-up Addition is not just another Paid-up Addition

Paid-up Additions are a crucial component to whole life insurance when someone wants to focus on cash value accumulation. In fact, we declared the rider–the magic of cash value life insurance a

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Top Indexed Universal Life Insurance Carriers for Cash Value Accumulation

Indexed universal life insurance is the product that can rival participating whole life insurance for cash accumulation and income strategies. It’s risk profile is similar, and it brings even more flexibility

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Can you “Bank” on Universal Life Insurance?

Bank on Yourself® and the Infinite Banking Concept® are well known selling systems that promote whole life insurance, but can we apply the secret sauce of these ideas to universal life insurance as well

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Fixing the Internet: Why Whole Life Insurance is NOT a Bad Investment

The “is whole life insurance a bad investment?” discussion is a great example of the classic advice we were given when the internet was a fairly new phenomenon and we had only just begun to

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Is Whole Life Insurance like a Roth IRA?

I want to start today’s discussion about whole life insurance and Roth IRA’s by noting that I had mixed feelings about writing this post. This one was motivated by requests to retort a blog post that

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Life Insurance Cash Values, You Can’t take it with you

There’s no doubt a number of people have made arguments against the ownership of cash value life insurance. You don't have to spend a lot much time surfing ye olde' interwebs to find such evidence. Too

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Cash Value Life Insurance Provides Flexible Funding Limits

So here we are talking once again about the wonders of cash value life insurance.  I know, I know…most of you are rolling your eyes in sarcastic disbelief that we could possibly have anything more

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Bank on Yourself®, Infinite Banking, et. al. Unraveled

Our regular readers know that we have a certain love/hate relationship with the whole Bank On Yourself®, Infinite Banking, and their various iterations. We certainly enjoy their work in furthering the

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Why Life Insurance Works so well for Retirement Income

Life Insurance used to generate retirement income is a slightly more advanced subject within the world of life insurance and financial planning. The stock jockeys hate it, and the life insurance agents

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