In a traditional whole life insurance policy, you will often see that there is no cash value in the first year. And that continues into the second year or perhaps your policy has a few dollars in cash value in the second year. Seeing so little cash value accumulation is disconcerting for people who buy …
For years, those who favor whole life insurance have told us that universal life insurance has an evil side. While the product affords the policyholder ample opportunity to adjust premiums as he/she desires, it also possesses the nasty cost of “shifting the risk back onto the policyholder,” thus (a favorite line of mine) “taking the …
The return of premium rider (sometimes simply ROP) is a life insurance feature that refunds all the premiums the policy owner paid upon meeting certain criteria. The most common example of this feature is the return of premium term life insurance policy. For return of premium term life insurance, the policy owner receives all premiums …
Most states define insurance rebating as an offer or inducement an agent/broker uses to get a prospective customer to buy an insurance policy where the inducement falls outside of the features of the life insurance contract. For example, if an agent offers to share some of his/her commissions earned on the policy sale with the …
When most people think of life insurance, they tend to think of it in its most basic form. The life insurance policy pays a death benefit to a beneficiary or multiple beneficiaries when the person insured by the policy passes away. But many have learned the powerful benefits of using life insurance for wealth accumulation. …
Life insurance can use several industry-specific terms that confuse laypeople. This can cause confusion about what specific features of a life insurance policy do. For example, what is the difference between a life insurance policy’s face amount and cash value? The really simple answer is that the face amount of a policy is simply its …
There are three main types of life insurance: whole life, universal life, and term life insurance. In each of the three broad types, there are many variations of each but we will take a look at the broad categories while pointing out a few of the finer points of each type. And just to be …
The key difference between a life insurance broker and a life insurance agent is the employment arrangement with an insurance company. Brokers do not have an employment arrangement with an insurance company and have no authority to act as a representative of the company. Brokers merely act as relationship middlemen matching prospective insurance buyers with …
Cash value in a life insurance policy is an accumulated benefit you can use while the policy is still in force or take with you when you cancel the policy. Cash value accumulates through the payment of premiums. There are various things you can do to a life insurance policy to enhance the cash value …
Provided your life insurance policy is a whole life or universal life insurance policy that has accumulated cash value, you can withdraw cash from your life insurance policy. There are a few additional details you should understand when withdrawing cash from a life insurance policy, and we’ll cover all of that in this article. If …
