Using a broker can also simplify the process of picking insurance. There are so many different choices for insurance, with different limits and exclusions for each policy. It can be difficult to know which insurance and what level of coverage is right for you or your business. This is where an insurance broker can help. Using their experience in the field, a broker can analyze your risks and liabilities to determine exactly what coverage you need. With access to a variety of technology-based tools, brokers can make it simple to compare various options to determine which policies would best fit your needs. Using a broker eliminates the stress of learning about different types of insurance, and makes it easy to figure out what insurance will work for you.
Regarding insuring the pensioner in a spousal benefit enabled pension: Sure, this is a popular strategy. For an identical monthly benefit, you can compare the cost of a Joint-Last-to-Die annuity (basically a pension) vs an individual annuity on the pensioner. Let’s say the difference is $400/month. Well, if you can buy enough life insurance benefit to support the spouse for life (insured is still the pensioner in this case) and the cost is less than $400/month (or whatever the cost differential is between the two scenarios), you may just do an individual annuity for the pensioner and then if he dies first, the insurance proceeds can support the spouse. If the cost of life insurance is greater than $400/month (or whatever the cost differential is between the two scenarios), then do a joint-last annuity and you’re covered for life.
Term assurance provides life insurance coverage for a specified term. The policy does not accumulate cash value. Term insurance is significantly less expensive than an equivalent permanent policy but will become higher with age. Policy holders can save to provide for increased term premiums or decrease insurance needs (by paying off debts or saving to provide for survivor needs).[25]

In the United Kingdom, The Crown (which, for practical purposes, meant the civil service) did not insure property such as government buildings. If a government building was damaged, the cost of repair would be met from public funds because, in the long run, this was cheaper than paying insurance premiums. Since many UK government buildings have been sold to property companies, and rented back, this arrangement is now less common and may have disappeared altogether.
There are also companies known as "insurance consultants". Like a mortgage broker, these companies are paid a fee by the customer to shop around for the best insurance policy amongst many companies. Similar to an insurance consultant, an 'insurance broker' also shops around for the best insurance policy amongst many companies. However, with insurance brokers, the fee is usually paid in the form of commission from the insurer that is selected rather than directly from the client.

Great read (http://momanddadmoney.com/insurance-and-investing-dont-play-well-together/ as well). Really taught me a lot. I’m a growing professional and a ‘friend’ tried to sell me a whole life participating life insurance. Like I believe you mention several times, all the ‘pros’ sounded really attractive. It actually made it sound stupid not to buy it. However, this alone made me hesitate as we all know what usually happens when something is too good to believe. I did a number of searches and read a few articles before stumbling on to yours. Excellently written providing a comprehensive explanation in terms that even a layman (i.e. me) could understand. Thank you as you just saved me from making a very big mistake. I hope others are lucky enough like me to happen upon your article before they make their decisions.

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“In the policy that was attempted to be sold to me, the “guaranteed return” was stated as 4%. But when I actually ran the numbers, using their own growth chart for the guaranteed portion of my cash value, after 40 years the annual return only amounted to 0.74%. There are a number of explanations for this difference, including fees and the way in which the interest rate is applied.”
Brokers are not appointed by insurers. They solicit insurance quotes and/or policies from insurers by submitting completed applications on behalf of buyers. Brokers don't have the authority to bind coverage. To initiate a policy, a broker must obtain a binder from the insurer. A binder is a legal document that serves as a temporary insurance policy. It usually applies for a short period, such as 30 or 60 days. A binder is not valid unless it has been signed by a representative of the insurer. A binder is replaced by a policy.
Our Management Liability specialists average 15 years of experience in structuring risk management programs that protect against various types of executive risk and management liability. Strong relationships with insurance carriers and familiarity with current government legislation and case law mean we can effectively manage your risks in real time—an imperative in this ever-changing business environment.

Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Additionally, due to its lifetime coverage, universal life typically has higher premium payments than term.


I find whole life as a way to guarantee some form of money will be there when its needed or maybe even as a gift. For such a low amount paid it would give me peace of mind and joy to know im buying future dollars at a discounted price. With that being said, life insurance should not be used as an investment because it was not meant to be used as an investment, You CAN use it as a Savings account for the LOOOONG term 30+ years if overfunded then rolled over to an annuity however by no means should it be your retirement account. I wish I could explain this concept more but I feel like ive typed quite a bit.
I am attracted to the asset based on 1) The tax diversification advantages 2) The idea of a death benefit for my family after I pass 3) the physiological trigger of forced savings 4) The “relative” liquidity/ flexibility of being able to access the money 5) The, what I view as, an acceptable rate of return “ROR” vs. the “buy term and invest the rest option” based on the relatively low risks 6) The idea of treating this as a fixed income asset that does not get taxed annually in my overall asset allocation and therefore adjusting my 401K bucket towards more equity and finally 7) The idea of a fixed investment with stable returns in the distribution phase of retirement is important to me.
Professional liability insurance, also called professional indemnity insurance (PI), protects insured professionals such as architectural corporations and medical practitioners against potential negligence claims made by their patients/clients. Professional liability insurance may take on different names depending on the profession. For example, professional liability insurance in reference to the medical profession may be called medical malpractice insurance.
Like most small business owners, you probably purchase your insurance policies through an insurance agent or broker. The functions performed by insurance agents are similar, but not identical, to those performed by brokers. This article will explain how they differ. It will also explain how agents and brokers make money from the premiums you pay your insurers. Except where noted, the following discussion applies to agents and brokers selling property/casualty insurance.
The “fixed returns” you talk about from whole life are not the 4-6% you mention in multiple places. Again, as I said in the post, the guaranteed returns are much closer to 1% or less. Yes you might get better returns depending on the dividends the insurance company decides to pay, but that’s not “fixed” or guaranteed. It changes every year. And yes, you can improve those refunds if you vastly overfund the policy in the early years, which again is something I already mentioned in the post. But for 98-99% of the population that really isn’t a viable strategy. 

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With whole life, both the MINIMUM size (your guaranteed cash value or your death benefit, depending on how you’re modeling it) and probability (100% if you keep paying) are known. So it is easy to model out your minimum expected return. And yes, that return stinks. It is usually far less than what you’d expect from investing in stocks. But there is a good reason for that.

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