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.
Pre-need life insurance policies are limited premium payment, whole life policies that are usually purchased by older applicants, though they are available to everyone. This type of insurance is designed to cover specific funeral expenses that the applicant has designated in a contract with a funeral home. The policy's death benefit is initially based on the funeral cost at the time of prearrangement, and it then typically grows as interest is credited. In exchange for the policy owner's designation, the funeral home typically guarantees that the proceeds will cover the cost of the funeral, no matter when death occurs. Excess proceeds may go either to the insured's estate, a designated beneficiary, or the funeral home as set forth in the contract. Purchasers of these policies usually make a single premium payment at the time of prearrangement, but some companies also allow premiums to be paid over as much as ten years.

Life Insurance Co


Life insurance can be very confusing. What is term life insurance? What is whole life insurance? How can you get the information you need and make the right decision about life insurance for you and your family or other beneficiaries? We’ll provide an overview of these two popular types of life insurance so you can get an idea of what might be a good fit for you. Find out more by contacting an insurance agent in your area.
Large number of similar exposure units: Since insurance operates through pooling resources, the majority of insurance policies are provided for individual members of large classes, allowing insurers to benefit from the law of large numbers in which predicted losses are similar to the actual losses. Exceptions include Lloyd's of London, which is famous for insuring the life or health of actors, sports figures, and other famous individuals. However, all exposures will have particular differences, which may lead to different premium rates.

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.

Insurance Comparison Company


Your statements are somewhat misleading. The policies that Kim are describing are likely Universal Life policies, not true whole life policies. True whole life policies have set premiums, not increasing. And the cash value is built off of a dividend being paid by the insurance companies. Many insurance companies (Ohio National Northwestern ?Mutual, ect.) have been around for over 100 years and have literally paid a dividend every single year. Which means that the policy holder is paying the same premium every single year and is also experience growth in their cash value account very single year. When Kim says that her “cash value was not making good returns” she is referring to a policy that is tied to the market, not based off of dividend payments. Whole life is an amazing product that you are confusing with Universal Life
The IRS regulation on how much can be put in over 7 year period to not cause a whole life policy to be considered a Modified Endowment Contract. Additionally, many long standing highly rated institutions will limit the amount of OPP that can be dumped into the policy over a given period. Why is that? Because people will use whole life in low interest environments with the intention of withdrawing in the event of a market change.

Insurance On The Spot Co


Lastly I believe you said your return was only .74% which I agree is low but just because you had a bad experience with a bad policy doesn’t mean all other whole life policies are the same. Different companies provide different returns and even different coverages. You’re being very general when more specific information is much more relevant in my opinion.
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.
Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "
Good question Eski. I would encourage you to look into long-term disability insurance as a potentially more effective way to provide coverage for the exact risk you’re talking about. In general you’ll get better, more comprehensive coverage from a disability insurance policy that’s specifically designed for this than from a life insurance policy that includes it as a limited add-on.
Ally or Matt, Can I ask what you used(formula?) to calculate their colorful presentation of the long term growth plan? I was recently presented with this Whole life idea from a Salesman or “Wealth Planner” and he made it sound really good but deep down inside, I don’t feel right, i felt the need to research more because i know there’s more to it than pretty graphs and colorful numbers…until i found this article which explains A LOT so thanks Matt:)
In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, and Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400 and Riders: ICC1368050, ICC1368051, ICC1368052, ICC1368053, ICC1368054, ICC1368055. This is a brief product overview only. Coverage may not be available in all states, including New York. Benefits/premium rates may vary based on plan selected. Optional riders are available at an additional cost. The policy has limitations and exclusions that may affect benefits payable. Refer to the policy for complete details, limitations, and exclusions. For costs and complete details of the coverage, please contact your local Aflac agent.
Now that you have a better picture of the difference between term and whole life policies, you probably want to compare term life versus whole life insurance costs. To do so, you will need to directly compare the short and long term costs of a whole life policy and a term policy, based on factors like your age, the face value of the policy you want to buy, and whether or not you are a smoker.

Insurance Journal


Example (Comprehensive): You park your car outside during a major hailstorm, and it's totaled. If you have comprehensive, we'll pay out for the full value of your car (minus your deductible amount). Example (Collision): You back out of your garage, hit your basketball hoop, and cause $2,000 worth of damage to your vehicle. If you have collision, we'll then pay for your repairs (minus your deductible amount).
In India IRDA is insurance regulatory authority. As per the section 4 of IRDA Act 1999, Insurance Regulatory and Development Authority (IRDA), which was constituted by an act of parliament. National Insurance Academy, Pune is apex insurance capacity builder institute promoted with support from Ministry of Finance and by LIC, Life & General Insurance companies.
A very good article. Congruent to the philosophy in which our company was built: Buy Term, Invest the Difference. I am a crusader at heart and I am peeved every time I see these products in the hands of people who can barely afford it and whose life will be completely damaged for merely owning it because they are grossly under-insured when they could have well purchase a proper term amount for the time they need it.
Insurance Brokers work the consumer vs. insurance agents who work for the insurance company.  Brokers are very knowledgeable with both personal and commercial insurance. Utilizing state-of-the-art rating software to find the most affordable insurance policies to fit your needs and budget. Insurance Brokers save time, money and energy when shopping for lower cost insurance.
Mortgage life insurance insures a loan secured by real property and usually features a level premium amount for a declining policy face value because what is insured is the principal and interest outstanding on a mortgage that is constantly being reduced by mortgage payments. The face amount of the policy is always the amount of the principal and interest outstanding that are paid should the applicant die before the final installment is paid.
How do you feel about Single Premium Index Life? I am 65 years old with no need for life insurance as my grown son will already be well taken care of with my other assets. The ability to care for myself in my retirement outweighs my desire for an additional legacy. this policy is being sold to me more like a long-term care policy where I can use the death benefit, if needed, for nursing home or chronic care. The single premium is $100K with the death benefit to go no lower than $182K. This is money sitting in saving accounts now because I value the feeling of liquidity. I may, or may not, need part of this money during my retirement. This policy is being presented to me by an insurance salesman who presented himself in a seminar as an expert in Social Security to target his audience. Thanks.

This site is published for some, but not all, residents of the United States of America. This site is not intended for use by residents of South Dakota, or by any countries other than the United States of America. Information concerning the identity, history and products of each insurance company represented by SelectQuote is intended for residents of states in which that insurance company is licensed. No applications will be sought or accepted on behalf of any insurance company from a resident of a state in which that company is not licensed. Availability of products varies by state.


Contingent or incentive commissions reward agents and brokers for achieving volume, profitability, growth or retention goals established by the insurer. For example, Elite Insurance promises to pay the Jones Agency an extra 3 percent commission if Jones writes $10 million in new property policies within a certain time frame. If Jones renews 90 percent of those policies when they expire, Elite will pay Jones an addition 2 percent commission.
A corollary to the liquidity issue is the concept of flexibility of your contributions. Even with a 401(k) or IRA, where you can’t access your money without penalty, you can always choose to stop contributing for a period of time if you need that money for other purposes. In the meantime, your account stays intact, steadily earning tax-deferred returns on the money you’ve already put in.
First of all, it’s important to understand that while the death benefit is certainly valuable, it is not technically an “asset”. The asset that you can include on your balance sheet with a whole life policy is the cash value. The only way you get the death benefit is by dying, so it is not an asset you can actually use today. Again, that doesn’t mean it’s worthless, it’s just not correct to compare it to money in a savings or investment account.
My husband and I have been using the same Independent Insurance Agent for over 15 years and I can't imagine getting insurance from anyone else! I like the personalized service we get. As bad as customer service is everywhere else, it's nice to know that I can go to my local office and get the help I need. I'm rarely put on hold when I call and I'm always helped by a knowledgeable staff member, not someone reading from a script. I've compared our insurance rates with many other companies, and our agent makes sure we get the best insurance for the best price. We've dealt with brokers and captive agents too, but our best experiences have been with Mr. Johnson.
Coverage that suits you. Comprehensive and collision coverage is just the beginning. Our policies also give you the flexibility to dial up (or down) your peace of mind. Choose from new car replacement2, special parts replacement3, enhanced rental car damage coverage4, and more. And because there’s only one you, receive identity theft protection5 at no extra cost.
How do you feel about Single Premium Index Life? I am 65 years old with no need for life insurance as my grown son will already be well taken care of with my other assets. The ability to care for myself in my retirement outweighs my desire for an additional legacy. this policy is being sold to me more like a long-term care policy where I can use the death benefit, if needed, for nursing home or chronic care. The single premium is $100K with the death benefit to go no lower than $182K. This is money sitting in saving accounts now because I value the feeling of liquidity. I may, or may not, need part of this money during my retirement. This policy is being presented to me by an insurance salesman who presented himself in a seminar as an expert in Social Security to target his audience. Thanks.
Death benefits are generally received income tax-free by your beneficiaries. In the case of permanent life insurance policies, cash values accumulate on an income tax-deferred basis. That means you would not have to pay income tax on any of the policy’s earnings as long as the policy remains in effect. In addition, most policy loans and withdrawals are not taxable (although withdrawals and loans will reduce the cash value and death benefit).2 

Insurance Solutions

×