Evaluating Whole Life Insurance as any Good Investment: Life Benefits Christmas Gift for You in 2019

Investment grade life insurance is commonly sold as a solution to avoid the non-diversifiable market risk associated with investing in the market. The problem is that investment grade life insurance is basically a marketing gimmick which should alert every suspicion nerve in your body to its highest level.  Here are the reasons why: Life insurance, …

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Premium Financed Life Insurance: A Risky Endeavor

It seems that premium financing to purchase life insurance is becoming a common marketing tool to sell more life insurance to business owners and private individuals.  Whether the marketing strategy is focused on how you can borrow against a life insurance policy you already own to finance another life insurance policy premium or the marketing …

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CSO Tables…And What They Mean For You

CSO Tables…you won’t find these tables in any furniture store. CSO (Commissioners Standard Ordinary Mortality) Tables are produced by the Society of Actuaries and the American Academy of Actuaries, who work together to glean the data that provides insurance companies the necessary information to determine what reserves they need to keep in order to pay …

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Understanding Indexed Universal Life Insurance Values

It is common to see a table of past index performances in an Indexed Universal Life Insurance (IUL) illustration. These performances are always accurate but can be misleading if you don’t comprehend how past performances relate to creating value in an IUL policy. Historical data provides little to nothing in helping you project what the …

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Fear, Greed and Commissions

A big complaint against life insurance is the supposed “huge” commissions an agent earns when you purchase a whole life insurance policy.  It’s been said that when dealing with money there are only two motives that drive your decision, “Fear or Greed.”  Those who oppose life insurance attempt to paint all life insurance agents as …

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Can You Trust Historical Index Averages?

The craze in insurance sales these days is Index Universal Life Insurance (IUL). And for good reason. The insurance companies that sell the stuff, reduce their risk by passing that risk on to you (Whereas they willingly assume this risk when they issue a Participating Whole Life Insurance Policy (PWLIP) to you). Insurance companies are …

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Why Interest Rates Matter

Anybody can lend money, but typically lenders are banks, credit companies like Visa, MasterCard and American Express, or retail stores that offer an in-store credit card.  The rate of interest that is charged by these lenders can vary widely depending on the type of loan, the credit history of the person (business) applying for the …

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Direct or Non-Direct Recognition: What Difference Does it Make?

If, as an insurance company, I want to reduce my risk associated with providing loans to policyholders who leverage their death benefit to take policy loans, I have two options.  I can, Force all policyholders to assume the risk associated with someone taking a policy loan against their policy, as in non-direct recognition companies. Or …

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Where’s The Guarantee?

It’s been twenty-one years since Transamerica Life Insurance Company released and sold their very first Indexed Universal Life Insurance Policy (IUL).  Today there are over 40 insurance companies that have followed suit realizing, that by taking Transamerica’s lead, they can increase their profits (the insurance company’s profits) while assuming less risk.  And while this means …

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The Worst Year Since 2008 On Investments

2018…It was a year that recorded multiple historic highs as well as the largest single-day gain in history. But it turned into a loss for most investors. In fact, according to MarketWatch, 90% of the 70 asset classes cited in the Wall Street Journal posted negative returns for the year.  The previous worst time in …

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