Cash Value Life Insurance Provides Flexible Funding Limits

Cash Value Life Insurance Provides Flexible Funding Limits

So here we are talking once again about the wonders of cash value life insurance.  I know, I know…most of you are rolling your eyes in sarcastic disbelief that we could possibly have anything more to say about the subject.

After all, we've written nearly 300 posts at the insurance pro blog and more than a handful have revolved around the use of cash value life insurance.  Not to digress but I would like to point out that we often use the terms cash value life insurance and permanent life insurance interchangeably.  Just to clarify.

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045 WARNING: You Could Lose Money with Indexed Universal Life Insurance!

You Could Lose Money with Indexed Universal Life Insurance

(Complete Show Notes Below)

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In the 45th episode of the Financial Procast:

We Discuss Indexed Universal Life Insurance

The episode starts off with an introduction to indexed universal life insurance (IUL), what it is, how it works and why it came to be in the first place!  After quite a few years of offering a current assumption uinversal life insurance product that was solely based on an interest rate, the life insurance industry decided to introduce a new variation of UL to the mix–enter IUL.  This product is widely sold through FMO's, IMO's and BGA's.  It's heavily marketed as a “wonder drug” sort of product by a great many marketeers and they are entire life insurance sales and marketing systems built around using this product.

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Indexed Universal Life Insurance Income Variation Analysis

Indexed Universal Life InsurnaceIndexed universal life insurance is another strong contender to whole life insurance for the purpose of accumulating wealth and generating retirement income through life insurance. If you need a primer on how indexing works, you can find that here. To explain the concept in 25 words or less, we’ll simply say that it’s a product designed to use stock index movements as a means to determine the credited interest rate on a universal life product. And if you need help understanding the basic mechanics of universal life insurance, that post is here.

So since indexed universal life insurance vies for your precious retirement-building-dollar, we figured we’d ask the same question we asked of whole life insurance just last week. How doe the income change as the assumed rate of interest changes.

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Infinite Banking Lies About Whole Life and Universal Life Insurance

Infinite Banking

For years, proponents of infinite banking have highlighted a certain benefit behind cash value life insurance. The specific benefit has been more closely associated with whole life insurance, and those directly connected with “The Infinite Banking Concept®” have towed a hard line for whole life insurance over universal life insurance. Last summer, a newsletter released by said company attempted to expose the weaknesses of indexed universal life insurance to promote the superiority of whole life insurance in accumulating wealth and providing security for one’s family. What we’re going to explore today is whether the rally against universal life insurance – and, more precisely, indexed universal life – is a just one.

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What’s Your Budget for Cash Value Life Insurance?

What’s Your Budget for Cash Value Life Insurance

I know it seems like a question that Fast Eddie would ask you as soon as walked onto the used car lot.  You know the drill, “So how much are you looking for your monthly payments to be?”

Yeah we’ve all heard that classic line.  And no that’s not exactly what I’m talking about but I discovered just a couple of weeks ago that I can sort of sound that way at times.

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Is Indexed Universal Life Insurance an Alternative to Stocks?

Indexed Universal Life InsuranceIndexed universal life insurance showed up in the early 90's to a somewhat mixed reception. For years it was a relatively obscure product, made available by a minority of insurance companies. But then, the 00's turned out to be a really boring decade and the buy-and-hold mantra was starting to show signs of ware.

So, many companies that threw mutuality to curb in the 90's and early 00's (and even a few that didn't) turned to a new idea that would entice market hungry “investors” whose stomaches were turned inside out by a decade with not one but two recession. Actually, in all fairness the second recession came a few years after the popular adoption of the new product.

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Use Cash Value Life Insurance to Create Retirement Income

Use Cash Value Life Insurance to Create Retirement Income

Many of the people who reach out to us hope to use cash value life insurance to create retirement income. They’ve heard about this possibility, maybe read a book or two that talked about it, and, in some cases, even talked to a “certified” advisor.

But, they’re still scratching their heads as to how it all works, and they’re often convinced they haven’t seen the best representation of the strategy.

In the last few years particularly, this strategy has gained significant momentum, and it’s not surprising with the sagging long-term rates of fixed income investment vehicles (treasury bonds, corporate bonds, and CDs) and the volatility of the stock market since 2008.

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