Top Whole Life Insurance Carriers for Cash Accumulation 2014 Edition

Historical Whole Life Insurance Dividend Changes

When considering the best whole life insurance for retirement savings or any other derivative dealing with cash balance focus (e.g. Bank on Yourself®/Infinite Banking®, collateral assignments, retirement income, etc.) it’s vital to pick a product and a carrier that can best accommodate this goal.

Whole life insurance can be an excellent choice for accumulating cash on a tax deferred and even tax free upon distribution strategy, but one small detail most insurance agents/brokers tend to forget to mention is the fact that not all whole life insurance contracts are created equally.

And since we spend a great deal more time than the average agent/broker planning, designing, and implementing policies for this very purpose, we’ve taken to rolling out a winners list each year based on our experience and knowledge of the industry’s offerings.

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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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121 Life Insurance is not a Rotisserie Chicken

“We want to let everyone know that life insurance is like that guy on the TV selling his little oven thingy…you just set it and forget it!”

That was the utterance of a Friday morning sales meeting I once labored through when I was a relatively new agent at one of the big mutuals. The attempt was to equip the newest agents with the confidence to convince their family and friends (i.e. their project 200) that this life insurance stuff was pretty cool.

I’m the only one who was in the room who still happens to be in the business, and I’ve never channeled Ron Popeil when it came to explaining life insurance, so I’m not all that sure it was a successful tactic, but I digress.

Sadly, this also wasn’t only time I’ve witnessed this allusion in an attempt to persuade an unwitting prospect to buy life insurance.

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Indexed Universal Life Insurance Company Asset Yield Comparison

Indexed Universal Life Insurance Company Asset Yield Comparison

Oops!! Not sure what happened with our other post today…but hopefully it works this time.  Thanks for your patience.

As a form of cash value life insurance that can be manipulated for asset building purposes indexed universal life insurance has many coveted features. But just like we noted in the whole life insurance company asset yield comparison it’s wise to take a moment and look at company asset yield performance as an indicator for company strength to maintain the yields we’re assuming.

While it’s not the whole story, the yield on assets under management can help indicate a company’s financial fitness in terms of being able to maintain current caps on its indexing account, which affects how well the policy, will perform longer term.

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How Does Whole Life Insurance Work

How do Whole Life Insurance Dividends Work

Whole life insurance dividends have long mystified both consumers and agents. We know that once per year, the mutuals and other companies that issue participating whole life insurance release press releases to announce the dividend payout for the following year. And usually (but not always…New York Life…) the companies will typically release what this payout means to the dividend interest rate.

And it's this dividend interest rate that causes so much confusion across parties. So how does it work, and what does it mean? When a company pays a 6% dividend, what is it paying 6% on?

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Flexible Paid-up Additions Riders: When a Paid-up Addition is not just another Paid-up Addition

Flexible Paid-up Additions Riders

Paid-up Additions are a crucial component to whole life insurance when someone wants to focus on cash value accumulation. In fact, we declared the rider–the magic of cash value life insurance a long time ago.

But we’ve tended to be real loosey-goosey about a very important distinction between paid-up additions, which was entirely by accident. And today I’m going to try to further solidify precisely what we look at when it comes to sorting out coveted policy features specifically regarding whole life insurance as those features pertain to life insurance as a low risk asset class.

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