Category Archives for Life Insurance

The Over-Loan Protection Rider

For years, the task of creating income from a life insurance policy was all about balancing the growth of policy loans against the growth of policy cash values. Assuming the policy cash values grew at

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There is no Whole Life vs. Term Insurance Debate

An aspect of the financial services and insurance industries that has always bugged me is this notion that there is some sort of debate over which life insurance product someone should buy. To set the

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Life Insurance Has Weathered the Opinion Storm

Life insurance is a pretty unique financial tool. It’s no secret around here that we’re fans. Our admiration comes from personal observations and a lot of number crunching we’ve done to arrive at

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Could Your Loan Rate on Your Indexed Universal Life Insurance Drive Your Cap Rate Down?

Recently there have been some rumblings in the life insurance industry. I know, big surprise. It seems life insurance agents and industry professionals love to disagree. First, make sure you read last

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Introduction to Indexed Universal Life Insurance Policy Loans

Indexed universal life insurance policies generally offer two types of policy loans. Though the language can be a bit intimidating to some, by the end of this introduction, you should have a solid understanding

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Blended Whole Life Insurance versus the Stock Market

About two years ago, we put out an article with real historical results of a blended whole life policy. The policy was shared on the Bogleheads forum (of all places). The compound annual growth rates of

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Five-Year Whole Life Insurance Company Investment Yield Trend: 2015 Edition

A life insurance company's yield on assets is a great metric to watch with respect to inferences concerning the cash performance within policies. Since life insurers use the yield achieved on managed assets

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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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Best Performing 10 Pay Whole Life Products for Death Benefit: 2015 Edition

Last week we revealed results of our 10 pay whole life comparison for cash surrender value and this week we have the results comparing the death benefits of various 10 pay whole life products. The comparison

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Best Performing 10 Pay Whole Life Products for Cash Value: 2015 Edition

We’ve gathered information on the best performing 10 pay whole life products for 2015 looking at cash value rate of return. As a quick review

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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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Indexed Universal Life Insurance Crediting Debate Update

The debate over regulating indexed universal life insurance interest rate assumptions looks to be nearing an end and as the dust settles it appears as though the whole life insurance coalition won.

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Whole Life Insurance Guaranteed Cash Value Gaffe: A Financial Planner gets it very wrong

Normally we are fine with leaving minor mistakes people make regarding various financial products alone—long time readers of this blog know we’ve sure made our fair share of editing booboos among the

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Whole Life Insurance Company Investment Risk: Non-Investment Grade Bonds to Surplus

Choosing a whole life insurance company’s product as a place to store cash requires a deeper understanding and trust in the company’s ability to care for your money. There are a multitude of metrics

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Historical Whole Life Insurance Dividend Changes: 2015 Edition

Whole life insurance dividend changes often happen once per year and we generally get excited near the end of the year when most companies announce these changes. We’ve been tracking and announcing changes

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Understanding Life Insurance Underwriting: What does it mean to be Standard or Preferred

The life insurance underwriting process is an evaluation of an applicant that insurers use to categorize policyholders. The regular categories looking something like: standard, preferred, and preferred

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Why aren’t there more Fee-Only Insurance Advisors?

Fee-only insurance advisors sound like a good idea. Since we can never know if an insurance agent/broker is truly working in a client’s best interest or secretly anticipating a commission check, the

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The Myth of the Evil Insurance Salesman

For years, media types and fee-for-service consultants have shouted commissioned salespeople into a dark ugly corner. This bullying reinforces the stereotype that commissioned sales professionals twist

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Five Year Indexed Universal Life Insurance Company Investment Return Trend: 2014 Edition

Indexed universal life insurance investment return on assets is an indicator we use to measure how well an insurer can maintain returns on its cash value products. Just like the whole life insurance investment

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Top Indexed Universal Life Insurance Carriers for Cash Accumulation 2014 Edition

We all know indexed universal life insurance has taken its place at the top of the leader-board as the dominate form of universal life insurance when cash accumulation is a primary consideration. It’s

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Do Life Insurance Guarantees Matter?

Life insurance guarantees are sometimes heralded as a key benefit. Many whole life insurance contracts are sold with a focus on the fact that the policy boasts various guarantees that—while admittedly

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Five-Year Whole Life Insurance Company Investment Yield Trend: 2014 Edition

Whole life insurance investment yield on assets is an indicator we use to judge how well the insurer will be able to maintain returns on its cash value products. It’s not a perfect metric, but when we

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Breaking News: Penn Mutual Announces 2015 Dividend Rate

The Pennsylvania Mutual Life Insurance Company has announced its plans to pay its participating policy holders $41.2 million in dividends an increase of

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Breaking News: New York Life Announces 2015 Dividend

The New York Life Insurance Company has announced its plans to pay $1.6 billion to its participating policyholders in 2015.  This will be an increase in total dividends paid of

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Breaking News: Guardian Life Announces 2015 Dividend Rate

The Guardian Life Insurance Company of America has announced its plans to pay $784 million in dividends to its participating policy holders in 2015.  This will make the dividend rate for 2015

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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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Top Whole Life Insurance Carriers for Cash Accumulation 2014 Edition

When considering the best whole life insurance for retirement savings or any other derivative dealing with cash balance focus (e.g. Bank on Yourself®/Infinite Banking®, collateral assignments, retirement

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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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Breaking News: Northwestern Mutual Announces 2015 Dividend

The Northwestern Mutual Life Insurance Company announced its 2015 Dividend. Total dividends paid will increase by roughly $300 million to $5.5 billion and the dividend interest rate on whole life insurance

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Breaking News: 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

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