Chronic Illness and Long Term Care Riders appear to be catching on with consumers. The Life Insurance Market and Research Association (LIMRA) reports that new premium for individual life combination products increased 14 percent from the previous year. Chronic Illness riders grew 38 percent to comprise 59 percent of the the total combination product market.Read More
Archives for September 2016
Unless you live under a rock, you should be aware that we have had years of low interest rates. But, if you own Universal or Whole Life insurance, you should also look into how they have been impacted.
When these policies were sold in the 1980’s and 90’s, agents were showing 8-10% crediting or dividend rates which many buyers did not understand.
Insurance companies had to eventually reduceRead More
One of the most common questions we hear form clients interested in purchasing life insurance, is whether or not to buy from a stock or mutual company. They offer similar products, but mutual companies have one overriding characteristic that benefits policyholders; they operate for the long term benefit of the policyholders. A stock company does the same, but for their shareholders.
At first glance, it may seem as though the products are priced similarly. They are. However, whether or not they maintain that pricing is dependent on little known clause inside the policy called cost of insurance or COI. Most consumers typically think that policy performance is based on the crediting rate of the cash values. What they don’t Read More
If you own a life insurance policy/ policies with cash values, one day, your advisor may tell you to look at a 1035 exchange. Sometimes, it can be a beautiful thing to do. But, there are also instances when a life insurance replacement does not make sense. As an example, you cannot qualify for it if your health is bad. But, what are some of the less obvious red flags you should be looking for?
Compare premiums carefully. The new one may have a lower premium, but if you need to pay it for a longer period of time, the net cost over your lifetime may be higher. Compare the projected number of years of payments to and beyond life expectancy.Read More
As an insurance advisor, I find myself getting more and more excited about Indexed Universal Life (IUL). It’s been around for a while, but recent industry changes have made it more competitive and attractive than before.
IUL offers policyholders a way to get death benefit protection by utilizing stock market based growth potential without the risk of directly participating in the stock market.
Policy cash value has the potential to grow based on the performance of a market index measured Read More
One of the most common questions we hear is, “How can a new policy be more cost effective than an older policy I locked in at a lower age?”
Yes, that old policy was locked in at a younger age and perhaps at “Super Preferred”rates. But, the insurance company pools you in a group with other healthy people, the same gender, age, andRead More