Proper Assumptions about Indexed Universal Life Insurance Income

Proper Assumptions

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 interest rates means that we need to seriously test our design and proposed ideas to ensure proper expectations as it relates to policy performance.

Unfortunately, this responsibility sometimes goes unchecked and a few bad eggs have presented and sold policies with lofty expectations that may one day become serious disappointments as it relates to the income producing capabilities of these products.

Remember–many people are looking to use indexed universal life insurance to create tax-free income at some point in the future by making use of policy loans.

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Breaking News: MassMutual Announces 2015 Dividend

MassMutual Announces 2015 Dividend

The MassMutual Life Insurance Company announced its 2015 dividend. Citing the fact that this will be the 17th year the Springfield, MA based insurer has paid over $1 billion in dividends to its participating policy holders.

The exact dividend payout will total $1.6 billion in total representing a $92 million increase over last year and the dividend interest rate will be

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Indexed Universal Life Insurance: The White Coat Investor Responds

Indexed Universal Life Insurance White Coat Investor

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 and on Friday of last week published a lengthy reply.

Based on the time Jim has taken to address this, I felt it was necessary to offer up some additional thoughts, and even a small critique on his attempt to rebut my biggest criticism of his original work.

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Ten Things Life Insurance Agents won’t Say: #3 Your Child doesn’t Need Life Insurance

Life Insurance for Children

Life insurance for children is a topic I’ve discussed in the past, a few times. And while I mostly agree that a lot of agents (and consumers) often get things backwards in terms of what, how, and even if this should be done.  Categorically declaring against it is neither helpful nor heroic.

This is the third item on the Market Watch piece; let’s set the record straight.

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Is Indexed Universal Life Insurance Just what the Doctor Ordered?

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 before, once quite a while ago when he attempted to malign whole life insurance and again about a year ago when readers wanted me to take on his suggestion that whole life insurance is not like a Roth IRA.

The second time I disappointed some people when I did the exact opposite of what they wanted by pointing out that he wasn’t wrong on that subject.

For the most part, we like to leave him alone in his pursuits. This is due in part to the fact that, believe it or not, we’re not all that different in our main goal—to identify and bring attention to the really dumb things financial professionals of all types do to people (for the White Coat Investor it’s specifically doctors) that leave them in a less than optimal position.

We differ, obviously, on our feelings about life insurance and that’s mostly fine. But Jim’s been on a bit of an indexed universal life insurance rant lately thus we’ve decided to weigh in on his recent work reviewing an indexed universal life insurance illustration that someone sent him.

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Ten Things Life Insurance Agents won’t Say: #2 We’d Rather Sell you Investments

Life Insurance Investment

Moving right along on our critique of Market Watch’s failed attempt at a slam piece against insurance agents from a few months ago, today we take on item #9.

Apparently insurance agents find insurance dreadfully boring. So boring in fact, that they’d much rather talk to you about “investments.” And, much to their delight, federal legislation that came about in 1999 opened up the flood gates allowing agents to rush to the market with savings focused life insurance products—because it’s not like they’d been doing this for over 100 years with whole life insurance or anything.

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Indexed Universal Life Insurance: Another Weird Trick to get more Cash out of your Policy

Another Weird Trick to get more Cash out of your Policy

Indexed Universal Life Insurance is the dominate form of fixed (i.e. not involving any direct investment in mutual funds) universal life insurance for cash accumulation, and just like whole life insurance can be manipulated by agents and brokers to maximize cash value produced by the policy.

Just like last weeks discussion, the change that we make to optimize cash value does not require that the policy owner place any more money into the policy than he or she was planning, it simply comes down to properly designing the policy to focus it on cash accumulation.

It should also be noted that with universal life insurance, there tends to be a greater divergence in terms of cash value development between policies that are designed to provide cash accumulation and policies that are designed to focus more on sustained death benefit—and this goes beyond the simply distinction between universal life insurance policies that are designed to have an indefinite secondary guarantee. If you don’t know what that last statement means, don’t worry too much about it.

Just know that correct policy selection for universal life insurance is just as critical as it is with whole life insurance.

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Ten Things Life Insurance Agents won’t say: #1 you have too much Life Insurance?

The Truth about Life Insurance Agents

Back in July, market watch published a list of 10 Things Life Insurance Agents won’t say, which is an on going theme for the articles author, Daniel Goldstein. The piece attempts to be provocative and cast doubt on the life insurance industry within the eyes of the consumer. This allusion is not a new one. The evil {insert name of industry here} is out to get you, but we, the good guys in the media, are looking out for you and here to help you navigate your way out of their complicated web of lies.

While I applaud any attempt to bring truth and justice into the spotlight, I also appreciate the truth. And since this piece was so terribly embellished (and poorly written), I’ve decided to yet again get out the old Insurance Pro Blog bleach and disinfect the internet. We’re going to address each point for the next ten weeks (oh boy!) with facts that will help bring clarity and reality to disinterested media’s dim-witted attempt to pants the life insurance industry.

So claim #10, you actually have too much life insurance…

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