As its name implies, dividend paying whole life insurance is a form of whole life insurance that earns a dividend from the insurance company that issues the policy. The official insurance term used to identify a dividend paying whole life policy is “participating” because the policy participates in the divisible surplus (i.e. profits) of the insurance …
Whole life insurance is both good and bad depending on the need of the individual and how well whole life matches that specific need. For some people, whole life insurance is an incredible tool used to accomplish one or several goals. For others, it’s a complete mismatch and will provide little more than disappointment. By …
Whole life insurance offers three nonforfeiture options that ensure policy owners receive value from their policies should they cancel them prior to death. The exact value of the nonforfeiture benefit depends on the length of time that the policy owner paid premiums–more premiums paid means more nonforfeiture benefit. These benefits stem from laws originating in …
Whole life insurance can be a great option as a complementary asset for retirement planning. But there are good and bad options, so we’ll walk you through what makes whole life insurance worthwhile for retirement planning. The main reasons to use whole life insurance as a means to prepare for retirement are: Safety Taxes Diversification …
Choosing to cash in your whole life policy can be a complex decision that requires some careful consideration. There are a few consequences to such a decision that you should understand prior to deciding whether or not you actually cash it in. There are also other options you most likely have at your disposal that …
The automatic premium loan provision (APL) is an optional feature of a whole life insurance contract to pay the premium due with a policy loan when the policyholder does not pay the premium. Using the premium loan feature on a whole life policy ensures that the policy remains in force and does not trigger the …
Limited pay life insurance is a type of whole life insurance that has a shorter guaranteed payment period than a traditional whole life policy. There are several types of limited pay life insurance policies all with differing guaranteed premium payment periods. Despite these differences, all limited pay policies operate under an identical principle. I’ll spend …
Whole life insurance, and other forms of cash value life insurance, enjoy numerous tax benefits that make them sought after financial products. These benefits can be found among other financial tools, but together they represent an impressive package of tax-friendly features well worth a look. These combined benefits become especially interesting to Americans in higher …
A couple of weeks ago, we addressed a suggestion that whole life focused insurers are more conservative investors who seek out specifically guarantees when they make their investment decisions. We tested this theory with a comparison looking at the investment profiles of Northwestern Mutual (the number one issuer of whole life insurance in the United …
Several years ago, I published a blog post that used real whole life data results to compare to passive index investing results. The results showed that a well designed whole life policy that maximizes cash value comes extremely close to the results we can anticipate from passive index investing. That’s not, of course, to flat …
