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.
Muslim scholars have varying opinions about life insurance. Life insurance policies that earn interest (or guaranteed bonus/NAV) are generally considered to be a form of riba[60] (usury) and some consider even policies that do not earn interest to be a form of gharar (speculation). Some argue that gharar is not present due to the actuarial science behind the underwriting.[61] Jewish rabbinical scholars also have expressed reservations regarding insurance as an avoidance of God's will but most find it acceptable in moderation.[62]
Insurance Broker Co Aurora CO 80015

I really wish you would have stated more clearly the difference between the typical whole life plans with zero overfunding and a participating overfunded whole life policy. But I agree with you: What’s the point of not overfunding? Those policies have such a low cash component that they typically are just a ploy to make money by the agent and it seems as if that was your point all along. Which you should have clarified. Why minimum whole life insurances plans are a scam, especially when sold as a main investment vehicle. But then a little drama drives traffic right?
There are a number of explanations for this difference, including fees and the way in which the interest rate is applied. But the bottom line is that you can’t take that “guaranteed return” at face value. It is incredibly deceptive. Run the numbers for yourself and see if you’re happy with the result. The reality is that you can often get better guaranteed returns from a savings account or CD that’s also FDIC insured.

Insurance Comparison Co


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]


One point I would like to counter is the idea that whole life “is insurance that CANNOT BE TAKEN AWAY”. It can be taken away if you are not able to keep up with your premium payments, which is pretty common given that people’s lives and financial situations are constantly changing. With some policies, the premium can even go up depending on the performance of the policy, forcing you to pay more than expected if you want to keep the coverage in place. So it’s not quite as simple as saying that the death benefit is a sure thing.

The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in jurisdictions where both terms are used, "insurance" refers to providing coverage for an event that might happen (fire, theft, flood, etc.), while "assurance" is the provision of coverage for an event that is certain to happen. In the United States, both forms of coverage are called "insurance" for reasons of simplicity in companies selling both products.[citation needed] By some definitions, "insurance" is any coverage that determines benefits based on actual losses whereas "assurance" is coverage with predetermined benefits irrespective of the losses incurred.


The problem is that it takes a long time for the returns to reach that level. There will be many years at the start of the policy where your return will be negative, and many more years where the return will be only slightly positive. If you stick with it for a long time, you eventually get into a reasonable range of returns. But if at any point before that you decide you want to do something different, you will have spent many years and a lot of money getting very poor returns.
Any person who uses permanent insurance should be out of debt and have the discipline to maintain a long term approach. There aren’t any get rich quick schemes and any plan can work as long as an investor looks to get the maximum value for the money they pay. Cash Value Life insurance provides values that promises you or I can’t keep unless we partner with one of these companies.

Insurance Types Co


I am a fairly wealthy Canadian professional with a corporation. I have indeed maxed out all my tax-deferred savings options. I am nearing 50 years old. I only have one child. By the time I retire I will probably have more money than I could use , but my daughter will probably already inherit more money than she will ever need when I pass away. Do I bother with all of this complicated permanent insurance stuff, or just forget it and try to spend as much as I can ?!! Your article makes me want to forget the whole thing is I am not usually comfortable investing in things I don’t understand very well especially when everyone seems to be pushing it due to high commissions. However I seem to be in that 1% group you say would actually benefit from this. What do you think?

Full Circle, one time I thought whole life insurance was great. Then I cashed it in, bought at least 5 new automobiles, a house, a couple motorcycles and more bullshit. Then I learned how to properly use life insurance as a bank, instead of borrowing money from a bank, I borrow the money from myself and pay myself back what I would have paid banks. I get to collect all the interest I would have paid the banks. I get to grow my money tax free. I get to pass my hard earned money on to my family tax free. The key is understanding Whole life vs creating your own banking system.

Insurance Rates Co Aurora 80015


3 The above example is based on a scenario for 20‐year term life insurance (domicile state) that includes the following benefit conditions: $50,000 death benefit, $50,000 accidental death benefit, and $12,500 seatbelt benefit. Benefits may vary by state, benefit option, and level of coverage selected. Review your state‐specific brochure below for a “How It Works” scenario customized for your state.
Certain insurance products and practices have been described as rent-seeking by critics.[citation needed] That is, some insurance products or practices are useful primarily because of legal benefits, such as reducing taxes, as opposed to providing protection against risks of adverse events. Under United States tax law, for example, most owners of variable annuities and variable life insurance can invest their premium payments in the stock market and defer or eliminate paying any taxes on their investments until withdrawals are made. Sometimes this tax deferral is the only reason people use these products.[citation needed] Another example is the legal infrastructure which allows life insurance to be held in an irrevocable trust which is used to pay an estate tax while the proceeds themselves are immune from the estate tax.
Premiums paid by a policyholder are not deductible from taxable income, although premiums paid via an approved pension fund registered in terms of the Income Tax Act are permitted to be deducted from personal income tax (whether these premiums are nominally being paid by the employer or employee). The benefits arising from life assurance policies are generally not taxable as income to beneficiaries (again in the case of approved benefits, these fall under retirement or withdrawal taxation rules from SARS). Investment return within the policy will be taxed within the life policy and paid by the life assurer depending on the nature of the policyholder (whether natural person, company-owned, untaxed or a retirement fund).
SelectQuote uses pixels, or transparent GIF files, to help manage online advertising. These GIF files are provided by our partners for the duration of a campaign and are then removed from the site. These files enable an advertiser to recognize a unique cookie on your Web browser, which in turn enables us to learn which advertisements bring users to our website. The cookie was placed by us or by another advertiser with explicit permission from SelectQuote. With these cookies the information that we collect and share is anonymous and not personally identifiable. It does not contain your name, address, telephone number, or email address.
Insurance Quotes Online Co Aurora CO 80015

An insurance broker is experienced in different types of insurance and risk management. They help individuals and companies procure insurance for themselves, their homes, their businesses or their families. Brokers may focus on one particular type of insurance or industry, or they could provide advice on many different types of insurance. They provide a service to their customers in helping them find and buy insurance — usually at no cost to their client.

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.


Marine insurance and marine cargo insurance cover the loss or damage of vessels at sea or on inland waterways, and of cargo in transit, regardless of the method of transit. When the owner of the cargo and the carrier are separate corporations, marine cargo insurance typically compensates the owner of cargo for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier or the carrier's insurance. Many marine insurance underwriters will include "time element" coverage in such policies, which extends the indemnity to cover loss of profit and other business expenses attributable to the delay caused by a covered loss.
Finally, IF you decide that these are not the right policies for you, it’s generally better to cancel sooner rather than later in order to minimize the amount of premiums you pay. You should even look at your policy to see whether you’re still within an initial period where you could get all your payments back. Again, I’m not saying that you should cancel, just that if you do want to cancel it’s better to act quickly.
Captive Agents - Captive insurance agents represent just one insurance carrier. In essence, they are employees of the carrier. The upside of working with a captive agent is that he or she has exceptionally thorough product knowledge. The downside is that he/she cannot provide access to products or pricing from outside their respective company. For this reason, you must have a high tolerance for carrier-specific terms, since each carrier and its in-house representatives may use language that is tough to compare across several companies that you encounter. Nevertheless, tap into that exceptional product knowledge and get smarter along the way as you search. The surge in online insurance websites offers consumers yet another option to use as part of their selection strategy. It is easy to find an insurance agent online, particularly one from a national insurance provider. Moreover, with 24-7 online access and quick comparison of policies, these web services are convenient, quick and a great way to ballpark quotes and to give you exposure to a wide variety of insurance providers. When you find one that is appealing to you, give them a call or fill out an agent request online.
You’re typically asked about your current and past health conditions, and your family health history. The insurer may ask for your consent to get your medical records and may ask you to take a life insurance medical exam. Insurers will also check other data sources to determine term life insurance quotes. More: What you need to apply for term life insurance

First, you compare whole life as a retirement vehicle to a savings account or CD. I’ll get to whether or not it’s actually better than those vehicles next, but regardless that’s an improper comparison. When people save for retirement, they generally do so with things like stocks, bonds and real estate. Savings accounts and CDs are not very good long-term investment tools. So whether it’s better than those things for retirement or not, the point is irrelevant.


Any death benefit of the policy will not be payable if the named insured commits suicide or if anyone covered by additional riders commits suicide, while sane or insane, within two years from the policy or rider effective date. All premiums paid will be refunded, less any indebtedness. The following information only applies to the Accelerated Death Payment, Waiver of Premium Benefit Rider, and Accidental-Death Benefit Rider:
It is your responsibility to evaluate the accuracy, completeness and usefulness of any opinions, advice, services, or other information provided. All information contained on any page is distributed with the understanding that the authors, publishers and distributors are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. Consult your own legal or tax advisor with respect to your personal situation.

Insurance Company Near Me Co Aurora 80015


*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.
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.
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.
When shopping for insurance, there are several key things that customers look at, including cost, speed, ease, security of personal data, and peace of mind that all essentials are covered. Working with an insurance broker can help get you the insurance you need at the best price. Brokers deal with a wide range of products and services and have the qualifications needed to recommend the policies that best suit your needs. As most brokers work for smaller companies that represent big insurance companies, the service is typically more personalized, meaning better quality support.

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.
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.
I think everyone here that is naysaying Matt’s article needs to realize he is speaking generally to the masses and not the upper middle class/affluent. Matt, perhaps move that paragraph I highlight to the front of the article to disarm some of these people and clarify you are speaking to people whom buying whole life would come at the expense of maxing their 401k, owning their home, having emergency savings, stocks etc… For those that have the aforementioned AND have a life insurance need, a good policy with a quality company may be worth considering. But for young people especially with limited assets, term insurance products are preferable. Perhaps re-title the article “Why Whole Life Is Not Appropriate For Most People”.
Those who buy life insurance do so to help ensure their loved ones are taken care of financially. Life insurance is a promise by an insurance company to pay those who depend on you a sum of money upon your death. In return, you make periodic payments called premiums. Premiums can be based on factors such as age, gender, medical history and the dollar amount of the life insurance you purchase.
Also, during your life if the policy pays 4% and you take a loan against the policy (for any reason) the net effect is that you are paying yourself the 4%, and perhaps 1 or 2% to the insurance company. CSV collateral loans typically are cheaper than unsecured loans, or auto loans. Used properly the whole life insurance contract is one of the most versatile wealth building tools.
Neither insurance consultants nor insurance brokers are insurance companies and no risks are transferred to them in insurance transactions. Third party administrators are companies that perform underwriting and sometimes claims handling services for insurance companies. These companies often have special expertise that the insurance companies do not have.
The bottom line is that I feel that the insurance industry has adapted to the negative stigma attached to whole life insurance polices and are introducing some variants that do not look at all like the whole life insurance that is described in the above article. They have found ways to counter some of the Reasons not to invest in whole life insurance mentioned in the article above (such as the interest rate). I read about another variant called EIULs and I think there are many other similar products out there. But they can not counter all of the Reasons mentioned in the article above. So buyer beware and do your due diligence!
Notes No risk of losing coverage, but no cash value when term ends No risk compared to other permanent types, but there are probably better investment options Refunds your premiums at the end of the term if you outlive the policy - Risk of holding expensive insurance policy with little ot no cash value Risk of holding expensive insurance policy with little to no cash value

Of course, it’s always more efficient to just save the money themselves. However, many people don’t and people often want to make sure that the money will be there when they are old and can no longer make decisions for themselves. Whole life is one way to do that. We chose term because it made more sense for us and it was so cheap since we were young when we bought. However, I’m just presenting the alternate viewpoint coming from someone who has filed many, many whole life policies on behalf of grateful families.

Home insurance Co Aurora 80015


The first is that, as you say, no one invests all their money at the beginning of the period and cashes out at the end. Usually you invest some at the beginning and more at various points along the way. For example, someone who contributes part of their monthly paycheck. And since the stock market generally goes up, that means that you will inherently get lower returns than if you had invested all of your money at the beginning, simply because some of your money will not have been invested for the entire ride.
Hey Mark. Thanks for the kind words and you make a great point! That’s a big reason for #5 in the article. With the speed at which life can change, locking yourself into paying those premiums for decades is just so limiting. And you go even further than that here with simply wanting to invest the money you’ve already put in differently, and I couldn’t agree with you more. It adds a lot of inflexibility to your planning which can make figuring out the other pieces a lot more difficult.
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.
Insurance Lapse 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?


State Farm Bank, F.S.B. Bloomington, Illinois, is a Member FDIC and Equal Housing Lender. NMLS ID 139716. The other products offered by affiliate companies of State Farm Bank are not FDIC insured, not a State Farm Bank obligation or guaranteed by State Farm Bank, and subject to investment risk, including possible loss of principal invested. Contact State Farm Bank toll-free at 877-SF4-BANK (877-734-2265).

In the United States, the most prevalent form of self-insurance is governmental risk management pools. They are self-funded cooperatives, operating as carriers of coverage for the majority of governmental entities today, such as county governments, municipalities, and school districts. Rather than these entities independently self-insure and risk bankruptcy from a large judgment or catastrophic loss, such governmental entities form a risk pool. Such pools begin their operations by capitalization through member deposits or bond issuance. Coverage (such as general liability, auto liability, professional liability, workers compensation, and property) is offered by the pool to its members, similar to coverage offered by insurance companies. However, self-insured pools offer members lower rates (due to not needing insurance brokers), increased benefits (such as loss prevention services) and subject matter expertise. Of approximately 91,000 distinct governmental entities operating in the United States, 75,000 are members of self-insured pools in various lines of coverage, forming approximately 500 pools. Although a relatively small corner of the insurance market, the annual contributions (self-insured premiums) to such pools have been estimated up to 17 billion dollars annually.[36]
Analysis: You’ll likely get better services from outside specialists, but that’s not the overriding factor here. The real problem is that tying services to insurance products makes it disruptive for you to leave your broker. The products and services should be unbundled so that there’s real competition for the big-ticket item: the insurance itself.
Good question Lisa. I’m not an expert on Northwestern Mutual’s policies so I can’t give you a precise answer. But I believe that their adjustable comp life insurance policies allow you to combine term and whole life insurance in various proportions based on your desired outcome. In other words, it’s a more flexible policy than typical whole life insurance.
Gap insurance covers the excess amount on your auto loan in an instance where your insurance company does not cover the entire loan. Depending on the company's specific policies it might or might not cover the deductible as well. This coverage is marketed for those who put low down payments, have high interest rates on their loans, and those with 60-month or longer terms. Gap insurance is typically offered by a finance company when the vehicle owner purchases their vehicle, but many auto insurance companies offer this coverage to consumers as well.
First, there are your regular whole life policies that are non-{articipating and then there are those that are Participating. Participating policices earn dividends which is called a “return of premium” however with that dividend it purchases more insurance and the coverage keeps going on as long as a dividend is paid, the more coverage the more dividend, the more dividend the more coverage etc. After 25-30 years a person can stop paying for the policy and take reduced paid up insurance and keep the insurance enforced for the rest of their lives without paying a single cent. This is one of the features I absolutely love about participating whole life.
Insurance Services Co Aurora CO 80015

Nice write up. I personally have been able to save with an independent agent. A big concern of mine was finding an agent that worked with more reputable insurance carriers. There seems to be alot of agents who will use non-standard insurance carriers to provide cheaper coverage. I've heard some horror stories about customer service, sub-par adjustments, and claims services. I'd definitely do alot of research into the insurance companies the independent agent is appointed with.
Moreover, with hindsight, because I suspect that the conversion options in the term policies, as I look into them, won’t prove all that attractive, I am thinking that it would have been optimum to have had universal or whole life coverage for closer to 20% of our aggregate, total original insurance coverage, rather than 10%. Still, while I am pretty satisfied that my prior decision-making was close to right, I do wonder if you see this all very differently.
Any person acting as an insurance agent or broker must be licensed to do so by the state or jurisdiction that the person is operating in. Whereas states previously would issue separate licenses for agents and brokers, most states now issue a single producer license regardless if the person is acting on behalf of the insured or insurer. The term insurance producers is used to reference both insurance agents and brokers.
2) With a portfolio of risky assets, the LONG-TERM RETURN is expected to be higher, but the variability around that is MUCH higher. In pretty much all of the “expected return” analyses that people on the internet show to compare whole life to term life + investing the difference, they are just comparing annualized returns or an IRR on a zero-volatility return stream. What they don’t account for are situations where the market crashes and you panic, wanting to move money into cash, or having to draw down on assets because they’re liquid and you can. This is normal behavioral stuff that occurs all the time, and reduces the power of your compounding. If you and your adviser are sure you can avoid these common pitfalls, then that is great and you might want to go for it. But don’t dismiss the reality. Also when running your simulations, make SURE to tax all of your realized capital gains and interest income along the way, and unrealized cap gains at the end. It can make a big difference.
When I was at the meeting yesterday with my parents also present, I was really impressed at the product, which was basically a variation of whole life insurance called FFIUL. I was also impressed with the upper level salesman and the presentation. I saw the simulation that was shown and the resulting table of yearly returns looked impressive at first. I left the meeting with a smile on my face and was really thinking about making the investment especially considering that my friend (an accountant whose house I was at) said that he had invested in the same product.
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.
Chances are your home and auto are one of your largest investments in life.  But, that doesn't mean you have to over pay to insure them.  Finding affordable insurance can be challenging unless you have a lot of free time.  Fortunately there's a better way... InsuranceBrokers.com does the work of comparing multiple insurance companies at the same time, giving you the best coverage at an affordable rate.
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.
Virtually every state mandates that insurance agents and brokers meet licensing requirements, which normally entails the successful completion of a written examination. Prelicensing educational requirements may also apply, which can vary depending on the state and license type. Separate licenses are necessary for each line of insurance, including Life and Health and Property and Casualty. In addition, agents and brokers may have to meet ongoing continuing education requirements to maintain their licenses.

Your post on why whole life insurance is a bad investment was extremely informative. My father in law is deciding whether to buy a whole life policy because his term life premium is going up and he only has 5 years left until the policy expires. After reading your post and looking closely at the insurance companies offer my wife and I are advising to do something else with their money. Thanks and keep it up!
A good agent will figure out how much insurance is needed, and if a whole life policy would make sense without causing the policy to MEC within the constraint of one’s human life value. As for surrenders and loans against the policy, good agents discuss how to structure these options for supplemental retirement income to maintain a reasonable death benefit given a retirement age. There are institution(s) that have always paid a dividend and have been top rated every year.
Life Insurance Co Aurora CO 80015

The first is that, as you say, no one invests all their money at the beginning of the period and cashes out at the end. Usually you invest some at the beginning and more at various points along the way. For example, someone who contributes part of their monthly paycheck. And since the stock market generally goes up, that means that you will inherently get lower returns than if you had invested all of your money at the beginning, simply because some of your money will not have been invested for the entire ride.
Good question Pixley. Evaluating a policy that’s been in place for 7 years, as it sounds like yours has, is very different from evaluating a new policy. The key is to ignore everything that’s happened in the past and evaluate it only based on how you expect it to perform going forward. I would suggest getting an in-force illustration and running the numbers for yourself based on both the guarantees and projections. Every policy is different, especially those that have been in place for a while, so I really can’t say what you should expect.
3. I do understand that most investors are earning significantly less than what the market actually returns. That’s from behavioral errors and I don’t have any reason to believe that those errors disappear when you invest in a whole life insurance policy. In fact, my experience seems to show that whole life insurance tends to make the underperforance even worse, as it often takes 1-3 years before someone realizes just how poorly the product is performing. At that point, they’re even further behind than when they started.

Second, I used the policy illustration I received as an example of the kinds of policies I see all the time. Of course every policy is different and needs to be evaluated on its own merits, but the truth is that most of these policies behave similarly. The policy I evaluated personally was actually one of the good ones and was backed by one of the companies that many people look to as the “gold standard”. So it was not a “bad policy”. It was typical of one of the “better” policies.
2. You have to borrow your own money @ 6-12% and wait up to 6 months contractually to get it. Whhich now increases your already high monthly premiums. If you don’t pay back the loan, they add interest on interest! 3.It takes 3 years to build a dollar of cash value giving you a 0% rate of return for the first 3 years. 4.Any dividends you get back is a return of the money that they over charged you. Bottom Line: Horrible Product that is good for the Whole Life Company and Agent and Bad for the Consumer!

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.
That’s a healthy viewpoint and I wish more agents shared it. However, I still don’t believe that it’s a helpful product for most people. There are many ways that those premiums could be put to use that would provide the flexibility to use the money for a funeral, etc., or to use it for other needs along the way, all without the rigidness of having to continue paying the premiums or else see the entire benefit disappear.
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. 

The financial stability and strength of an insurance company should be a major consideration when buying an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool or other arrangement with less attractive payouts for losses). A number of independent rating agencies provide information and rate the financial viability of insurance companies.

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.
Moreover, with hindsight, because I suspect that the conversion options in the term policies, as I look into them, won’t prove all that attractive, I am thinking that it would have been optimum to have had universal or whole life coverage for closer to 20% of our aggregate, total original insurance coverage, rather than 10%. Still, while I am pretty satisfied that my prior decision-making was close to right, I do wonder if you see this all very differently.
Whole life is insurance not an investment. You buy it so the day you pass on your family will have money to ease their grieving by giving them time off, financial security, and most importantly for whole life insurance to pay the cost of your funeral, etc. It can mean a lot to people to have a nice funeral for their loved one as a proper send off. I view whole life as a product, like my house, which I also don’t view as an investment.
First, yes there is a surrender value. It’s right there in any illustration you look at. Second, it takes much longer than 5 years for what you’re talking about to happen, excluding the premium paid in. In fact, it usually isn’t until about year 6-7 where the cash value starts increasing by even as much as the premium paid. Before then, every premium payment is losing you money.
Social insurance can be many things to many people in many countries. But a summary of its essence is that it is a collection of insurance coverages (including components of life insurance, disability income insurance, unemployment insurance, health insurance, and others), plus retirement savings, that requires participation by all citizens. By forcing everyone in society to be a policyholder and pay premiums, it ensures that everyone can become a claimant when or if he/she needs to. Along the way this inevitably becomes related to other concepts such as the justice system and the welfare state. This is a large, complicated topic that engenders tremendous debate, which can be further studied in the following articles (and others):
Second, what that means is that your decision should be based solely on how you expect each option to perform going forward. You can evaluate what you expect to get from the whole life policy going forward vs. what you might expect from other options, and then decide which options give you the best chance of achieving your personal goals. I can’t honestly answer that question for you, but I hope some of the information in this article and others throughout the site do give you a sense of your options.
Certain insurance products and practices have been described as rent-seeking by critics.[citation needed] That is, some insurance products or practices are useful primarily because of legal benefits, such as reducing taxes, as opposed to providing protection against risks of adverse events. Under United States tax law, for example, most owners of variable annuities and variable life insurance can invest their premium payments in the stock market and defer or eliminate paying any taxes on their investments until withdrawals are made. Sometimes this tax deferral is the only reason people use these products.[citation needed] Another example is the legal infrastructure which allows life insurance to be held in an irrevocable trust which is used to pay an estate tax while the proceeds themselves are immune from the estate tax.

Disability- what happens to your retirement plan contributions if you want to work but can’t? Your employer can’t even contribute for you… It’s illegal. Oh, a life insurance company will pay the premium for you along with any additional money that you scheduled to dump in… And continue to contribute forever if your remain disabled (if done right). That is called a “self-completing retirement plan.”
Your premise is that whole life insurance is a bad investment. Fine, however, it is not a bad purchase. It is insurance and when thinking about the defined purpose of insurance then it can be a different story. Your electric service is a bad investment but think of the difficulty in living without electricity. Sure you could invest the bill amount each month into a nice Roth IRA but we seek the benefits of the service and willingly pay the bill. I suggest that people look at insurance the same. In my case and for my intent, whole life insurance was prudent. Like any car lease deal or stock purchase, there can be good and bad deals; one should not declare all forms at all points in time to be definitive. I gifted my child a whole life policy. The rates for a young person are as good as they get; she will never have insurance bills nor be without insurance. There is much left to explain but in short her $25,000 baby policy is growing $1,000 per yea. She will never have to pay a premium but will have $225,000-$350,000 payout one day while providing some protection also during the income/mortgage/child rearing adult years because I purchased it for her at the cost of $120.25 per year! No way could a poor farm kid without inheritance or wealth and limited income but high student loan debt create that kind of wealth for his children in the immediate or most vulnerable time period. To leave her in the same boat, as my parents did, is in no way wealth building. I got married and had mortgage, student loans, and large term life insurance bills because to go without any seemed irresponsible having no wealth but whole life was too expensive. So yes, it is far from a great investment but it is the most responsible gift I ever gave my child. It will not depreciate like a car and it is more certain than lottery tickets! Could I really produce that protection for her with liquidity via investing for only $120 per year? Tip: an insurance agent once told me (he should not have mentioned it) they have NEVER paid out on a life insurance policy because people always eventually let them expire and quit paying on them. Rates are so cheap for young healthy people because they are not likely to die. So this is also an exercise in discipline and responsibility not just finding the right stream to pan for gold.

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.
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.
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.
If you choose to get a rate quote online, you will be taken to the Life Quotes, Inc. website that is not owned by GEICO Insurance Agency. Any information that you provide directly to Life Quotes, Inc. on its website is subject to the privacy policy posted on their website, which you should read before proceeding. GEICO Insurance Agency assumes no responsibility for their privacy practices or your use of their website.

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.

All points have merit but, like any service, unprofessional service can be punished by walking. However, point #4, “market blocking” is a particularly confounding practice in P&C (I don’t think this occurs in LIfe & Health). Market blocking is a matter which Insurance Commissioners could easily correct nationwide to the immediate benefit of the customer.
Beyond that, I do agree that whole life insurance can be useful in certain situations when structured properly. But those situations are few and far between and they require the help of someone who both knows the ins and outs of these policies AND is willing to put the client’s interests over their own financial interests (i.e. minimizing commissions and other costs on the policy). That kind of person is also difficult to find.
I am looking at it all from the perspective of an inheritance. In my line of work, I see pensions and IRA’s taken by healthcare and Medicaid all the time. Heirs are left with nothing and it is sad. Im researching and researching but cannot find something that is safe enough, can grow to at least $100,000 for thirty so years, and cannot be taken touched aside from….life insurance. I have elderly grandfathers who left their families w/ something because of life insurance. My veteran grandfathers
Insurance Journal Co Aurora CO 80015

Boomer Benefits’ office is easy to find on Google places. We are staffed Monday – Friday and some Saturdays so that you can reach us by phone, email, or in person when you need help. Some agents who sell Medicare products work by themselves out of their homes. Unfortunately, that means that whenever the agent is in a meeting with another client, your call goes straight to voicemail. Who knows how long you will wait for a return call? It’s in your best interest to work with a bigger Medicare broker that has numerous representative standing by to take your call. Our agents will know you and care about you.

Insurance For New Drivers Company


SelectQuote Insurance Services is not obligated to monitor any transmission made through the respective web pages and newsgroups. However, SelectQuote Insurance Services has the right, but not the obligation, to monitor any transmission made to and for this website. SelectQuote Insurance Services may use or disclose information gathered from the site.
Then your example of paying $16,200 for $45,585 in coverage is interesting for a few reasons. First, I just want people to understand that again these numbers are simply illustrations, NOT guarantees. Second, using the site term4sale.com I see that a 40 year old male can purchase a $50,000, 30-year term policy right now for $135 per year, or $4,050 for the full 30 years. That’s 1/4 of what you quote for whole life, and the extra money is then available for whatever else that person might want to do, like investing, saving for college, or maybe even leaving a gift as you mention.
You do write that “some of our top clients who are in a tax bracket that you nor I will ever see” enjoy the benefits of whole life. As I say in the post, there is a small percent of the population with a very large amount of money that can benefit from whole life. That is not who I’m writing for here. For 98% of the population, it is not a useful tool.
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.
I have to agree with Bilal. While this article is very insightful for a very specific audience (young workers), it does not fully take into consideration the needs of older retirees. I had term life for 35+ years; as I approached 70, it got ridiculously expensive. It wound up being just under $1000 per quarter, which I could obviously not afford. I had to cancel the policy, with nothing to show for all of the years of payments. Now I have no life insurance, although I am in exceptional health. Whole life offers me a good way to have a $10,000 policy, which will cover funeral expenses so my kids won’t have to worry with that. I think it is a good deal for my circumstance, and suspect it is for many other older people, as these policies are generally available with no medical questions OR exam.
Hey Mark. Thanks for the kind words and you make a great point! That’s a big reason for #5 in the article. With the speed at which life can change, locking yourself into paying those premiums for decades is just so limiting. And you go even further than that here with simply wanting to invest the money you’ve already put in differently, and I couldn’t agree with you more. It adds a lot of inflexibility to your planning which can make figuring out the other pieces a lot more difficult.
The financial stability and strength of an insurance company should be a major consideration when buying an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool or other arrangement with less attractive payouts for losses). A number of independent rating agencies provide information and rate the financial viability of insurance companies.
It is your responsibility to evaluate the accuracy, completeness and usefulness of any opinions, advice, services, or other information provided. All information contained on any page is distributed with the understanding that the authors, publishers and distributors are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and accordingly assume no liability whatsoever in connection with its use. Consult your own legal or tax advisor with respect to your personal situation.
We don’t have enough information in these posts to make a recommendation. You should meet with a few advisors and get one you’re on the same page with. If they can’t explain why you “need” whole life (remember, there are other options for permanent insurance, including level-cost T100), dump him…you can do better. You should be requesting a few funding alternatives rather than banking on one strategy with different brokers. You need to really do your homework.
An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter. A person or entity who buys insurance is known as an insured or as a policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and usually involves something in which the insured has an insurable interest established by ownership, possession, or pre-existing relationship.
The first is that, as you say, no one invests all their money at the beginning of the period and cashes out at the end. Usually you invest some at the beginning and more at various points along the way. For example, someone who contributes part of their monthly paycheck. And since the stock market generally goes up, that means that you will inherently get lower returns than if you had invested all of your money at the beginning, simply because some of your money will not have been invested for the entire ride.
Brokers - Because a broker is solely focused on your unique needs, he or she can help with comparison-shopping, honing in on the best prices for the coverage you need. They can even advise you on how to best bundle or customize your policies in ways that agents might not be able to do (either because they are restricted in their policy offerings, or simply because they lack the insight into your specific needs).

Insurance Co

×