The benefits of permanent life insurance Permanent life insurance is intended to pay a death benefit, or return cash-value, at some point in the future. Permanent insurance can be for obligations that are expected to never end, those being: final expense, estate tax...
Contractual Guarantees in whole life insurance With whole life insurance there are generally contractual guarantees in the life insurance policy. The death benefit is guaranteed. The base premium is guaranteed not to increase. The cash-value of the policy may be...
Flexible premium policies A Universal Life (UL) — or flexible premium policy — is a form of cash-value policy where the cost of insurance increases every year. Typically, this annually increasing cost of insurance isn’t noticed by the policyholder, as the initially...
The three methods of cash-value crediting You should first read the Universal Life article to get a general understanding of universal life insurance, and then come back to read this article.There are three main cash-value crediting/growing methods used in universal...
Mutual fund sub-accounts and variable universal life insurance There are three main cash-value crediting/growing methods used in universal life policies: Traditional, Variable and Indexed.The second type of crediting mechanism is the use of accounts that are tied to...
Indexed universal life is the most complex type of universal life insurance You should read the Universal Life article first to understand the basic components common to all universal life/flexible premium life insurance policies.Indexed Universal Life (IUL) is the...
When is term (or temporary life insurance) the best choice? Only when you don’t have enough money to pay for a good whole life/permanent insurance policy or you have no desire to use life insurance as part of an overall financial plan and/or wealth strategy....
