Often a commercial insured's liability insurance program consists of several layers. The first layer of insurance generally consists of primary insurance, which provides first dollar indemnity for judgments and settlements up to the limits of liability of the primary policy. Generally, primary insurance is subject to a deductible and obligates the insured to defend the insured against lawsuits, which is normally accomplished by assigning counsel to defend the insured. In many instances, a commercial insured may elect to self-insure. Above the primary insurance or self-insured retention, the insured may have one or more layers of excess insurance to provide coverage additional limits of indemnity protection. There are a variety of types of excess insurance, including "stand-alone" excess policies (policies that contain their own terms, conditions, and exclusions), "follow form" excess insurance (policies that follow the terms of the underlying policy except as specifically provided), and "umbrella" insurance policies (excess insurance that in some circumstances could provide coverage that is broader than the underlying insurance).[32]

Insurance Solutions Co Aurora CO 80015

I’m sorry to hear you’ve had such a frustrating experience with your policy Jeanette. If I’m understanding correctly, it sounds like you originally took out a term life insurance policy before switching to a whole life insurance policy a few years later, and since then you’ve seen the value of your whole life insurance policy increase. Is that correct?
Second, when it comes to investing, my experience shows that most insurance companies charge MUCH higher fees than are necessary. And since cost is quite possibly the most important factor when it comes to investing, that matters a lot. I would much rather see people using a simple, low-cost index investing strategy that’s both easy to implement and backed by all the best research we have as the most likely route to success.

At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.28% per year. These returns cover a period from January 1, 1988 through February 4, 2019. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.


Hi, Matt. My parents are actually talking to an agent to get the whole life insurance and their premium monthly is about $1000 so which makes them to pay $120000 (since it’s the 10 yr plan) and the agent presented that the guaranteed value will be $250000. I have very little knowledge about the whole life insurance plan but wouldn’t it be easier for them to just get it and be insured with that guaranteed value if they are not the type to find where to invest and all that? or is it something that they shouldn’t relay on.. they are doing it for more their retirement and asked me for help but i am very confused about this whole life plan. Thanks!
Insurance brokers are professionals in the insurance industry who sell, solicit, and negotiate insurance for a living. They are regulated by the state and must meet certain licensing requirements to do business in their state. Insurance brokers are professional advisers, representing and working on behalf of their clients. Brokers help clients understand their risks and advise them on which assets merit insurance and which do not. Insurance brokers may have industry specializations as well. Keep in mind that insurance brokers are not actual insurers; they are the liaisons between the insurance companies and clients and work on the client’s behalf.
The second is that I’ve heard enough horror stories about indexed life insurance in general to be skeptical. It’s not that it can’t work, it’s that there are plenty of examples of it underperforming, having a catch that wasn’t made clear up front, and other instances where it just doesn’t work the way it was sold to work. Any time something is sold as being able to pay for any financial goal no matter the market conditions, it’s usually too good to be true.
If one were to buy a long dated bond with a yield of 4%, and interest rates go up, one could actually end up with a loss if bond not held to maturity. On the other hand, if one were to OVERFUND a participating Whole Life policy, the CASH VALUE IRR over 20 years would be around 4% (probably slightly above) based on current dividend scales. Yet if long term rates rise, so will the returns in the policy. As long as premiums are paid, the cash value in any given time will NEVER be less than the cash value a year earlier.
Protected self-insurance is an alternative risk financing mechanism in which an organization retains the mathematically calculated cost of risk within the organization and transfers the catastrophic risk with specific and aggregate limits to an insurer so the maximum total cost of the program is known. A properly designed and underwritten Protected Self-Insurance Program reduces and stabilizes the cost of insurance and provides valuable risk management information.

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The benefit to you is enormous. Boomer Benefits provides back-end policy support that you cannot get directly from an insurance company and that none of our competitors offer: a dedicated Client Service Team for our existing policyholders only with 10 full-time employees on call to immediately fix very common Medicare hiccups which are otherwise stressful for you.

Insurance Lapse Co


Finally, if you’ve already handled all of your other financial goals and you still have disposable income leftover and you want to use that money to buy a permanent life insurance policy that will leave an inheritance for your children, by all means go ahead and do so. But the vast majority of people will never be in that situation, and even if you are in that situation you will likely want a policy that’s specifically tailored to minimize fees and accomplish the goals you want to accomplish. Most whole life insurance policies will still be inefficient and unnecessarily expensive.
Ahh, the old character assassination route once you feel the facts are no longer on your side. I’m surprised we got there so quickly in this conversation. I would prefer to discuss the facts, as those are what actually matter. But if you must know, my credentials are in my author box above for all to see. My opinions are based on a broad understanding of both insurance and investments. My personal experience is used for illustrative purposes. And as an FYI, I have no buyer’s remorse because I did not purchase any whole life insurance. I have no bitterness, just a desire to help people avoid a product that is wrong for them.
In fact, he sort of torpedoes his argument by saying policy loans are legit, with the implication being policyholders are going to get into trouble if they don’t understand how to use policy loans. …but people already get into trouble by not being financially responsible so…again…nothing new. The problem isn’t borrowing or insurance. It’s financial education.
And yes, it is nice for children who develop chronic illnesses to have some amount of life insurance, potentially. But is the amount you purchase going to be enough? Yes they will have that amount but in most cases if they want more their health will still cause it to either be more expensive or unobtainable. So it isn’t exactly guaranteed insurability for life for whatever needs they have. It’s mostly limited to the amount you purchased, which is probably helpful but also probably wouldn’t meet their full needs. And again I would argue that you could buy term to cover their needs for a number of years while additionally saving in other ways if you really want to give them money they can use in the event of a chronic illness. Having it in accessible accounts would actually give them more options in that situation rather than having to wait till death.
And yes, it is nice for children who develop chronic illnesses to have some amount of life insurance, potentially. But is the amount you purchase going to be enough? Yes they will have that amount but in most cases if they want more their health will still cause it to either be more expensive or unobtainable. So it isn’t exactly guaranteed insurability for life for whatever needs they have. It’s mostly limited to the amount you purchased, which is probably helpful but also probably wouldn’t meet their full needs. And again I would argue that you could buy term to cover their needs for a number of years while additionally saving in other ways if you really want to give them money they can use in the event of a chronic illness. Having it in accessible accounts would actually give them more options in that situation rather than having to wait till death.

To echo what everyone else has said, great article! My wife and I were pitched this idea earlier today and I thought it sounded great until she made me read this article. I then returned to the paperwork they had given me to find it riddled with “these values are not guaranteed”. The footnotes even went as far as to say these projections were based on their dividend schedule for 2014 and that future years could be “higher or lower” and the went on to recommend looking at a hypothetical lower schedule illustration available upon request. My question for you is in regards to your conclusion. I’m self employed and put 30k into a sep-Ira and also utilize a tIRA->Roth conversion for my wife. You said this might be worth it if it was ossicle to front load the plan, the one I was presented with called for 15k/yr. are you saying it would be worth hit if I could put say 30-45k into each of the first few years? I’d still be a little skeptical after reading the brochure where it says the dividends are essentially at the discretion of he carrier
Naturally, the float method is difficult to carry out in an economically depressed period. Bear markets do cause insurers to shift away from investments and to toughen up their underwriting standards, so a poor economy generally means high insurance premiums. This tendency to swing between profitable and unprofitable periods over time is commonly known as the underwriting, or insurance, cycle.[25]

In other words, if you put a dollar into the market, and then the market drops resulting in a panic and you pull out what you put in, you’re more than likely pulling out .65 cents as opposed to the dollar. You’ve lost money, because you pulled out in a low market. However, if you have 3 to 4 years worth of living expenses in a non-correlated asset (I.E. Whole Life) you can use that as an effective way to bridge the gap until the market comes back up again. Sure it may cost a little more, but in the end you’re making a lot more money, since you’re selling your dollar for a dollar or more, as opposed to selling it for .65 cents.


Most of the time people selling against whole life state ” the guaranteed portions never materialize so assume no dividends are paid and let’s assumes you’ll get a 9 percent return in a mutual fund had you invested the difference”. This reasoning is total BS , all major mutuals have paid dividends over the last 150 + years and if you are in a mutual fund getting a higher return than 6 percent it is incredibly high risk and unrealistic long term. Also whole life tends to do much better in market downturns. they also make their money on forfeited policies, loans and pool payouts so their returns are not “totally” tied to the market performance.
A car insurance quote from The General® requires no personal information (your name, phone number, street address, etc.) to provide an accurate car insurance quote. Once you receive your anonymous auto insurance quote, there is absolutely no commitment on your part. You can save your auto insurance quote online at any point during the process and return to it at your leisure.

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Hi Jim. A couple of corrections. She’s actually secured a $36,250 asset for $25,000, as that’s what she would walk away with today if she decided to stop paying the premiums. And it would not be tax-free if she surrendered the policy today. Yes she could take tax-free withdrawals from the $36,250 today, but as I discuss above they would be subject to interest which is essentially the same effect as taxation.


A few comments… You shouldn’t ever be buying whole life insurance for purely for the reason of investing, you buy any life insurance because you need life insurance, the investment component is secondary. So not sure why we are analyzing it purely as an investment (I actually do know why, because some agents try to sell it this way, and Matt is trying to help them avoid a pitfall).
At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25.28% per year. These returns cover a period from January 1, 1988 through February 4, 2019. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

The cheapest car insurance, period, will likely be the minimum coverage required in your state. In most states this is liability insurance only, which covers property damage and medical bills for others due to accidents you cause. Some states also require uninsured and underinsured motorist coverage, which pay for your injuries or damage if an at-fault driver doesn’t have enough insurance.


*This material is for informational purposes only. In general, partial or full surrenders from a permanent life insurance policy in excess of the policy’s basis are taxable, and limited circumstances exist where death proceeds will be taxable. Neither Farmers New World Life Insurance Company, nor its employees nor its agents provide legal or tax advice. Always consult your own attorney, accountant or tax adviser as to the legal, financial or tax consequences and advice on any particular transaction.
"Flexible death benefit" means the policy owner can choose to decrease the death benefit. The death benefit can also be increased by the policy owner, usually requiring new underwriting. Another feature of flexible death benefit is the ability to choose option A or option B death benefits and to change those options over the course of the life of the insured. Option A is often referred to as a "level death benefit"; death benefits remain level for the life of the insured, and premiums are lower than policies with Option B death benefits, which pay the policy's cash value—i.e., a face amount plus earnings/interest. If the cash value grows over time, the death benefits do too. If the cash value declines, the death benefit also declines. Option B policies normally feature higher premiums than option A policies.
While you won’t be able to pinpoint the amount you’ll need to the penny, you can make a sound estimate.  Your goal should be to develop a life insurance plan that, following your death, will allow your family to live comfortably without your economic contribution. Also consider the effect of inflation over time. The amount needed for retirement or college 20 years from now is likely to be significantly higher than today.
Though not an absolute separation; an insurance agent is an insurance company's representative by way of agent-principal legal custom. The agent's primary alliance is with the insurance carrier, not the insurance buyer. In contrast, an insurance broker represents the insured, generally has no contractual agreements with insurance carriers, and relies on common or direct methods of perfecting business transactions with insurance carriers. This can have a significant beneficial impact on insurance negotiations obtained through a broker (vs. those obtained from an agent).
James, be very careful about blanket advice to roll your pension into an IRA. A lot of financial professionals can make money through a transaction like that and you’d likely be giving up guaranteed income for the rest of your life. To be clear, it’s certainly possible that this would be a good move, but you would only know that after a careful and detailed analysis of your specific pension, your specific goals, and the rest of your financial situation.
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.
Insurance terms, definitions and explanations are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in individual insurance contracts, policies or declaration pages, which are controlling. Such terms and availability may vary by state and exclusions may apply. Discounts may not be applied to all policy coverages.
As for the specifics of the infinite banking model, I’ll admit that I don’t know a lot of details. It’s always seemed to me to mostly be a clever marketing ploy more than anything else, but if you want a more informed opinion I would check out this article here: http://www.mypersonalfinancejourney.com/2013/04/infinite-banking-concept-whole-life-insurance.html.
I did an in-depth analysis awhile back showing the exact opposite of what you presented here. If you adjust for risk tolerance, and look at the best policies on the market, they’re not only competitive, they’re good. And, what I found corresponds with the research currently available about whole life vs BTID. Namely, sometimes, they’re better than a traditional 60/40 split portfolio (though I’d be hesitant to make that comparison as a blanket rule).
In other words, if you put a dollar into the market, and then the market drops resulting in a panic and you pull out what you put in, you’re more than likely pulling out .65 cents as opposed to the dollar. You’ve lost money, because you pulled out in a low market. However, if you have 3 to 4 years worth of living expenses in a non-correlated asset (I.E. Whole Life) you can use that as an effective way to bridge the gap until the market comes back up again. Sure it may cost a little more, but in the end you’re making a lot more money, since you’re selling your dollar for a dollar or more, as opposed to selling it for .65 cents.
The insurance company calculates the policy prices (premiums) at a level sufficient to fund claims, cover administrative costs, and provide a profit. The cost of insurance is determined using mortality tables calculated by actuaries. Mortality tables are statistically based tables showing expected annual mortality rates of people at different ages. Put simply, people are more likely to die as they get older and the mortality tables enable the insurance companies to calculate the risk and increase premiums with age accordingly. Such estimates can be important in taxation regulation.[10][11]
Your privacy is important to us. By participating in the Council of Better Business Bureau's BBBOnLine Privacy Program, we have made a commitment to meet the program's strict requirements regarding how we treat your information and have it verified by BBBOnLine. Further information about this program is available at https://www.bbb.org/online/consumer/cks.aspx?id=1080825165515.
The benefit to you is enormous. Boomer Benefits provides back-end policy support that you cannot get directly from an insurance company and that none of our competitors offer: a dedicated Client Service Team for our existing policyholders only with 10 full-time employees on call to immediately fix very common Medicare hiccups which are otherwise stressful for you.

Actually, there is one case which I use which is beneficial for whole life. As you get older, if you set up a Charitable Remainder Trust along with an Irrevocable Life Insurance Trust for your children, it is a win-win. You get the income from the trust, the charity/charities gets the benefit of the assets upon your death, and the ILIT (Irrevocable Life Insurance Trust) pays your kids while removing these assets from your estate. I think this particular situation is a win for all. Early in life though, I would definitely not do this and choose a Level Term Policy instead.
Most of the time people selling against whole life state ” the guaranteed portions never materialize so assume no dividends are paid and let’s assumes you’ll get a 9 percent return in a mutual fund had you invested the difference”. This reasoning is total BS , all major mutuals have paid dividends over the last 150 + years and if you are in a mutual fund getting a higher return than 6 percent it is incredibly high risk and unrealistic long term. Also whole life tends to do much better in market downturns. they also make their money on forfeited policies, loans and pool payouts so their returns are not “totally” tied to the market performance.
Brokers may be either retail or wholesale. A retail broker interacts directly with insurance buyers. If you visited a broker, who then obtained insurance coverages on your behalf, he or she is a retail broker. In some cases, your agent or broker may be unable to obtain insurance coverage on your behalf from a standard insurer. In that event, he or she may contact a wholesale broker. Wholesale brokers specialize in certain types of coverage. Many are surplus lines brokers, who arrange coverages for risks that are unusual or hazardous.

Also a comment on the “non-guaranteed” argument. Yes if you do business with a company not named Mass Mutual, Northwestern Mutual, or New York Life, you are likely getting ripped off. But if you work with a reputable company, they have paid dividends every year for 150+ years. So yes, legally speaking, returns are not guaranteed, but every year for 150 years sounds pretty good to me. Just as asset class diversification is important, so is tax and risk diversification, which permanent insurance provides.

I’ll start with the whole life policy a financial planner is currently trying to sell me on. It does seem to be too good to be true, so I’m trying to figure out what’s wrong with it. He claims that I put $1k in it each month for 20 years. At around the 10 year mark, the “cash value” meets the amount of money I’ve put into it, and begins to exceed it. After 20 years, I’ve put $240k in, and it’s worth around $550k. That’s the amount I could take out if I wanted to close the thing. And I *believe* he said that’s tax free, but maybe I’m wrong about that… he also may have said something about instead withdrawing a set amount of around $55k each year and that’s tax free? Not sure. But just looking at these numbers and ignoring the death benefit, is that not a good investment? I’ve been maxing out my 401k and investing in mutual funds for more than 10 years and I’d estimate for every dollar I’ve put in, I now have about $1.20. I’m sure some of that has been poor allocation of funds, but even taking that into consideration, it seems pretty pathetic compared to the option of more than doubling my money in 20 years (looking at the $550k out with $240k in). What am I missing?
My current blended Whole Life policy breaks even with premium paid in year 5, and together with my Indexed Universal Life policies, my permanent insurance policies constitute my entire fixed income allocation. No need for bonds, as these policies give me a decent long-term growth of between 4.5-6% that is virtually risk free, tax free and dummy proof…and provides a giant tax free death benefit upon my passing.

Insurable interest – the insured typically must directly suffer from the loss. Insurable interest must exist whether property insurance or insurance on a person is involved. The concept requires that the insured have a "stake" in the loss or damage to the life or property insured. What that "stake" is will be determined by the kind of insurance involved and the nature of the property ownership or relationship between the persons. The requirement of an insurable interest is what distinguishes insurance from gambling.


I had a meeting with a friend/part-time insurance salesman and his upper level salesman yesterday. Prior to the meeting I Googled “Is whole life insurance a good investment?” and read all the articles on the first page of results in their entirety both pro and con. This particular article stuck out for me and I read it twice and feel it has helped me in the process of making an informed decision about the product presented. Today, I read the article once again and all of the above posts and I thank you for taking the time to help the lay-person in their important financial life decisions.
You will find independent insurance agents represent many of the same insurance companies offered by local insurance agents.  The biggest benefit is the time savings individuals and business will find.  Because the selection of insurance companies for personal, commercial and life insurance is so comprehensive you don't have to contact several agents for quotes.  An independent insurance agent may represent 5 to 10 insurance companies. 

Don't forget to ask about the optional protection of a personal umbrella liability policy. Umbrella Coverage from $1,000,000 for individuals wanting higher liability protection. Most home and auto insurance policies stop at $500,000 liability coverage. A personal umbrella policy provides coverage on top of basic auto and home insurance: $1,000,000 to $10,000,000 available.
In the United States, economists and consumer advocates generally consider insurance to be worthwhile for low-probability, catastrophic losses, but not for high-probability, small losses. Because of this, consumers are advised to select high deductibles and to not insure losses which would not cause a disruption in their life. However, consumers have shown a tendency to prefer low deductibles and to prefer to insure relatively high-probability, small losses over low-probability, perhaps due to not understanding or ignoring the low-probability risk. This is associated with reduced purchasing of insurance against low-probability losses, and may result in increased inefficiencies from moral hazard.[52]

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