The SECURE Act of 2019 rewrote the rules on inherited IRAs. The biggest change eliminated a Required Minimum Distribution (RMD) schedule for younger non-spousal heirs that allowed them to “stretch” the distribution period out for their lifetimes. The new rules require these individuals to instead distribute all of the money in the IRA within a …
Since its inception, agents, marketing organizations, and even some general consumers have obsessed over the “average” interest credit assumed when projection indexed universal life insurance values. At one time, insurers used various “look back” periods–typically the one that showed their products in the best light–and regulators allowed these insurers to use whatever the average index …
Continuing our series of reviewing real-life results from whole life insurance policies, we look this week at MassMutual. Similar to other policies reviewed, we took data from a MassMutual whole life policy purchased around 10 years ago. We have the original illustration and used that to compare against current policy values. We also used this …
When buying a whole life policy it’s understandable that people want to try and assess how the policy values will perform over the next several years. The illustration provides a projection of values based on the current dividend, which we know will almost certainly be wrong. Other methods used to gain insight on how insurer’s …
Back in 2015 we published this blog post detailing a scenario looking at whole life insurance as an alternative option to buying bonds. The details for the individual who approached us included a desire to invest a sum of $500,000 into bonds, so we looked at how we could best deploy that cash into a …
Cash value life insurance, also known as universal life or whole life insurance, is a form of life insurance that builds cash value. You can use this cash value for a number of different options including pay premiums due, withdraw a portion of the cash to use as retirement income, or surrender the entire policy …
Indexed universal life insurance policies use a stock market index to set the interest payable on the policy’s cash value. This feature has a limit (the industry official calls it a cap) above which the market index returns will not affect the interest payable by the insurance company. This indexing feature plays a crucial role …
A whole life insurance policy illustration will include details, such as the life insurance coverage amount, the annual premium requirement, the guaranteed cash value, current dividend payment, and the year-over-year increase in cash value. There are also times that you might see a column on one of the internal pages of a whole life policy …
In August of this year, two California residents filed a lawsuit against the Pacific Life Insurance Company alleging: Violation of Unfair Competition Law Business and Professions Code Fraud and Deceit Intentional Misrepresentation Negligent Misrepresentation Breach of Fiduciary Duty Professional Negligence The lawsuit seeks class-action status welcoming the possibility that the attorneys working for the plaintiffs …
Whole life guaranteed cash value is an often overlooked and very powerful aspect of the use of whole life insurance as a wealth-building tool. The fact that a financial intermediary is willing to guarantee a value you can walk away from them with all the while promising to pay a substantially larger sum to your …
