Insurance is underwritten by The Travelers Indemnity Company and its property casualty affiliates, One Towers Square, Hartford, CT 06183. In TX: Automobile insurance is offered by Travelers Texas MGA, Inc. and underwritten by Consumers County Mutual Insurance Company (CCM). CCM is not a Travelers Company. In CA: Travelers Commercial Insurance Company, One Tower Square, Hartford, CT 06183. Certificate of Authority # 6519; State of Domicile: Connecticut and Travelers Property Casualty Insurance Company, One Tower Square, Hartford, CT 06183. Certificate of Authority # 6521; State of Domicile: Connecticut. In CA: Boat and Yacht insurance is underwritten by The Standard Fire Insurance Company, One Tower Square, Hartford, CT 06183, Certificate of Authority #0335-0, State of Domicile: Connecticut.©2017 The Travelers Indemnity Company.


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]
Add to this, when a younger person owns whole life (or cash value fixed universal life) they have the life insurance coverage they need, are building a tax free bond portfolio for the future (which as most people realize is what older investors shift into as the age) but also have a accumulation vehicle that can “self complete” if they become disabled. 401k’s can’t provide this…they don’t even match the long term return of the do nothing stock markets because of the fee’s they charge. That is to say…there is no “alpha”
7. The withdrawals you took out in the (distant) future was marketed as a tax free alternative to a 401k or 529 payout for retirement or college or for any expense really. And at 0% interest (after 10 years), you don’t really have to pay back the loan. It can basically be used as your personal piggy bank. The salesman said that the advantage over 401k/IRA was that you did not have to wait for a certain age. The advantage over 529 was that, if your kid got a scholarship, then the money in your FFIUL would not cause any conflicts in receiving the scholarship money similar to a 529 where the government would tell you to spend the money in the 529 first before cashing in the scholarship.

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In determining premiums and premium rate structures, insurers consider quantifiable factors, including location, credit scores, gender, occupation, marital status, and education level. However, the use of such factors is often considered to be unfair or unlawfully discriminatory, and the reaction against this practice has in some instances led to political disputes about the ways in which insurers determine premiums and regulatory intervention to limit the factors used.
2)The lack of cash flow flexibility is troubling in that the largest assumption driving my analysis is that I am able to continue paying the premiums and keeping my policy current. If I want to take time off for travel (which is a near-term goal) or lose my job before this becomes self-funding, the policy can lapse and I would get only the cash surrender value at what is most likely a loss depending on timing
Hi Matt, I’m a Life Insurance agent and Advisor and I work for New York Life. Some of your points make sense but saying that whole life is bad is a little off. It is good for savings toward your retirement and will do a lot more than a savings account, money market or cd will ever do. So to agree with you to a certain extent I’ll explain what I do for younger individuals, I’ll sell a whole life policy and later it with term insurance. Basically the whole life will build a cash value with guaranteed returns and the term insurance is in the event of an untimely death. $1,000,000 of term can be as low as $50 a month. Also NY Life has never guaranteed dividends but has paid them out for 159 years, even during the Great Depression. Our company is backed by a $180 billion general account and a $19 billion surplus. So yeah, we guarantee your returns. And we don’t just sell life insurance, that’s why our agents like myself have life, series 6,7,63,66,65 licenses, if our clients, not customers want more than life, we diversify for them into brokerage or anything else they want. Just puttin my 2 cents in.
This shift to universal life by insurance companies has made premiums cheaper but removed many of the guarantees that came with traditional whole life insurance like guaranteed face amounts, guaranteed premiums and guaranteed cash values. The result is that there are a lot of underfunded universal life insurance policies out there which aren’t really permanent policies anymore since they can’t support themselves and will lapse instead of paying out.
5. And you adise on how much someone should have? Please!!!! If you have a house and it’s worth $500k you insure to for that. If you make $100k/year at age 35 and the insurance company will cover you for $2.5 million then that’s what you are worth and that is what you should own. And if an agent doesn’t show a client that amount and the client dies they will be sued for malpractice for not showing the client their full replacement value.
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as perils. An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are non-exhaustive lists of the many different types of insurance that exist. A single policy that may cover risks in one or more of the categories set out below. For example, vehicle insurance would typically cover both the property risk (theft or damage to the vehicle) and the liability risk (legal claims arising from an accident). A home insurance policy in the United States typically includes coverage for damage to the home and the owner's belongings, certain legal claims against the owner, and even a small amount of coverage for medical expenses of guests who are injured on the owner's property.
I have whole life that I’m not understanding . I’m under the understanding I pay $401 for 7 years I’m done paying on a &135,000 policy that they tell me the more I borrow from the more it grows.But I’m starting to question if the interested charged doesn’t go back to me how it’s it growing. I’m very confused suopose to sit down with agent so he can explain it better. But from talking to other insurance people like my house and car insurance agent he says this is not possible about it growing. HELP
Independent Agents - Independent insurance agents function identically to insurance brokers in that they represent multiple insurance carriers. The primary difference between brokers and independent agents is that insurance brokerage companies are often larger than independent insurance agencies. However, independent agents and brokers approach the business in the same way, which is that they represent the customer.
Anyway, there are many complexities to the whole life insurance variant plan that I was presented with, which make it unattractive to me as an investment option. I would suggest that anyone who is looking at whole life insurance as an option take a close look at the investment results and compare them to other options available on the market. Also take a close look at the fees and the structure of the loans that you will take out in the future. My conclusion is that, I would like to get a term life policy for now and maximize my other tax advantaged investments first prior to delving into the world of whole life insurance. And, by the time I actually get around to maximizing my other investments, I probably will be much older and not get a favorable premium any more.
But a question for you. Do you have clients that have had an overfunded life policy when markets are tanking and can use that cash to float their business and still earn money while their money is loaned out? Talk about a winner. I have a lot of clients that are in business today because of their policies (and the people still employed). Especially when the interest can be written off. But then again some super conservative clients love them. I guess I’m just bummed you didn’t go any further but I am on a site not geared for my clientele. So here is another free post to build up the conversation and the controversy so you can cash in on the traffic.

House Insurance

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