Whole Life Insurance Pros and Cons

First, I feel the need to provide context for this post. 99% of our clients want to use cash value life insurance as an asset class. Which means people need to distinguish whole life insurance from indexed universal life insurance.

Yes, there are other products.

But none that we feel are worthy of consideration.

Which is better?

What are the pros and cons of each? Why would a person use one versus the other?

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2015 Whole Life Insurance Dividend Analysis

You can find the latest Whole Life Insurance Dividend Analysis here.

In 2013 we released the industry’s first public analysis on variation in dividends for major participating whole life insurance products. This analysis focuses on variation and trend of declared dividend interest rate at the seven most competitive life insurers who issue participating whole life and will publicly announce/disclose their dividend interest rate (more on this point later on).

We’ve long argued that this sort of analysis is the best gauge of potential cash value performance in a whole life policy because it allows us to review how the company has managed business and investment operations given the axiomatic assumption that these life insurers will move heaven and earth to deliver the highest dividend award to participating policyholders. This foundational assumption has substantiating legal precedents.

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Are Mutual Life Insurance Companies Better than Public Life Insurance Companies?

Mutual life insuranceMaybe you’ve heard this one before, the claim that mutual life insurance companies are better than public life insurers. Of course, the mutual life insurers all think so. But we’re willing to bet that the so-called public life insurers would tell you differently.

So is it true that the non-mutual life insurers are just out to swindle everyone out of their money and represent all that is wrong with American capitalism? Or are the mutual just stodgy companies that have a problem embracing modernity…and the capital markets. 😉

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