Indexed Universal Life Insurance: Another Weird Trick to get more Cash out of your Policy

Another Weird Trick to get more Cash out of your Policy

Indexed Universal Life Insurance is the dominate form of fixed (i.e. not involving any direct investment in mutual funds) universal life insurance for cash accumulation, and just like whole life insurance can be manipulated by agents and brokers to maximize cash value produced by the policy.

Just like last weeks discussion, the change that we make to optimize cash value does not require that the policy owner place any more money into the policy than he or she was planning, it simply comes down to properly designing the policy to focus it on cash accumulation.

It should also be noted that with universal life insurance, there tends to be a greater divergence in terms of cash value development between policies that are designed to provide cash accumulation and policies that are designed to focus more on sustained death benefit—and this goes beyond the simply distinction between universal life insurance policies that are designed to have an indefinite secondary guarantee. If you don’t know what that last statement means, don’t worry too much about it.

Just know that correct policy selection for universal life insurance is just as critical as it is with whole life insurance.

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Whole Life Insurance: “One Weird Trick” to get more Cash out of your Policy

High Cash Value

We all want more money. And when it comes to getting more money, we tend to think that there’s an arduous task ahead of us marked with unrelenting sacrifice and persistence. But when it comes to whole life insurance there’s actually nothing we have to do.

This seems counter-intuitive—if not downright impossible—but truth is getting more money with whole life insurance requires no extra effort, it just a little policy tweaking. And that’s where the real challenge lies.

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