Life Insurance used to generate retirement income is a slightly more advanced subject within the world of life insurance and financial planning. The stock jockeys hate it, and the life insurance agents love it. No surprise there. But is there something that life insurance brings to the table that is truly special? Or are you …
We make a lot of comparisons at The Insurance Pro Blog and whenever and even more behind the scenes at The Salus Agency. And one of the biggest questions that consistently comes up from some of those comparisons has to do with the gap between income projections for universal life insurance and whole life insurance.
So what gives with the disparity between these two products? Do the universal life carriers lie? Or is there something else underlying the situation that explains this difference?
Blended whole life insurance has long been a mainstay subject at the Insurance Pro Blog. Dare I go so far as to say it’s the subject that acted as the catalyst for the site’s existence (that might be a tad sensationalist, but also not incredibly far off from the truth).
We’ve explained numerous times how it works, and why it works. We even have historical evidence for its proof of concept. But, in the interest of cash optimization there exists another question that is a tad out of left field, but extremely important. Practically speaking, does it work?
Indexed 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.
