Myth: Indexed Universal Life Insurance has Stock Market Exposure – Case Study

When we discuss indexed universal life insurance with new potential clients, they commonly mention that they already have stock market exposure, so they see no need to gain additional exposure to the market.

I understand the impression they often have, but assuming that indexed universal life insurance gives you additional exposure to the market is a misunderstanding that could lead you to the wrong decision–many clients have expressed their gratitude in our willingness to pause and discuss the product more to ensure understanding.

Keep ReadingMyth: Indexed Universal Life Insurance has Stock Market Exposure – Case Study

102 Trust Me…Just Focus on the Future

102 Trust Me…Just Focus on the Future

What's the problem with binoculars?  They perform a great duty in that they make things that are off in the distance become very clear to us.

The problem is that they isolate your perspective so much that you often miss what's right in front of you.  What's that got to do with anything you ask?

Well, today we're talking about how some life insurance agents, financial advisors, financial planners et. al. like to have you focus too narrowly on the long term. You shouldn't forget that the short term can have value as well.  Often times we are able to glean some valuable information form short term data.

In our world, agents love to emphasize that life insurance is a long term “investment” and they do this to try and remove as much attention as humanly possible from the fact that most whole life and universal life policies (when sold the traditional way) have zero cash in the first year (and sometimes the first two years).

If we design them correctly, we can create cash surrender value in year one with almost all policies. That being said universal life insurance  can be challenging at times.

Keep Reading102 Trust Me…Just Focus on the Future

Should I Cash-In my Life Insurance (How CNN Got it Wrong and Why you should Care)?

Should I Cash-In my Life Insurance

Recently I cam across an article on the CNN Money Help Board posted from someone who was looking for some advice on deciding what to do with two life insurance policies he and his wife had.  The central sticking point for the individual was that the kids were gone and now he was trying to decide if it made sense to keep the life insurance policies he and his wife had.

Here's the Article

Keep ReadingShould I Cash-In my Life Insurance (How CNN Got it Wrong and Why you should Care)?

What Is Whole Life Insurance & How Does It Work?

The Basics of Life Insurance Part II

Known by a few different names, and probably the most tweaked product in the industry, Whole Life (aka straight life in older circles) has a several centuries history of offering guaranteed death benefit for the entire lifetime of the insured.

In the world of guarantees, nothing beats it, and it has been an anchor for conservative savings plans for just about as long as it's been in existence.  It's also one of the most hotly debated products in the insurance industry as opinions run wild about its overall usefulness compared to other products that exist today. 

Keep ReadingWhat Is Whole Life Insurance & How Does It Work?