As for your question, I don’t believe I’ve ever reviewed a USAA whole life policy so I can’t comment on then specifically. I would simply encourage you to start by clarifying your personal goals and to then evaluate each option based on how well it will help you meet them. With that said, of your main goal is investing for retirement then I would typically encourage you to max out traditional retirement accounts before considering any kind of life insurance.
Mores also gave the name actuary to the chief official—the earliest known reference to the position as a business concern. The first modern actuary was William Morgan, who served from 1775 to 1830. In 1776 the Society carried out the first actuarial valuation of liabilities and subsequently distributed the first reversionary bonus (1781) and interim bonus (1809) among its members.[7] It also used regular valuations to balance competing interests.[7] The Society sought to treat its members equitably and the Directors tried to ensure that policyholders received a fair return on their investments. Premiums were regulated according to age, and anybody could be admitted regardless of their state of health and other circumstances.[9]

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Once you write the check, it’s insurance company money. After some time, you may have the right,to borrow some money from them. They decide how much insurance they will pay and how much you can borrow. Let’s take a look at what they have named a universal policy. Let’s say you want to get the savings started right out the door. So you write them a check for $5000. Next month you have an emergency an ,you kneed $25.0/0. Too bad! In a few years, you’ll have a few dollars in cash value. First year or two – none! Now let’s say they have have a guaranteed return of 4%. N ow if you actually have a “cash value” of some kind, don’t you think there would be something there? 4% of WHAT = $0 ??? It’s all insurance company money – they said so to the US government in 1985.


Still, although I believe that persons without adequate income either to fund adequately retirement vehicles or to pay monthly bills without using a home equity line of credit or leaving any credit card balances unpaid, should probably only purchase term insurance, if you earn more than that, I am thinking that purchasing 15% to 25% of needed life insurance coverage though whole life policies may be a way to mitigate against the needed guessing that goes into picking the length and amount of term policies. Do you agree?

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Builder's risk insurance insures against the risk of physical loss or damage to property during construction. Builder's risk insurance is typically written on an "all risk" basis covering damage arising from any cause (including the negligence of the insured) not otherwise expressly excluded. Builder's risk insurance is coverage that protects a person's or organization's insurable interest in materials, fixtures or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from an insured peril.[28]
Insurance agents have a responsibility to the insurance company.  Agents act as the insurance company representative in the buying process as they are typically salaried employees.   Most insurance agents are “Captive” to represent only one company, such as: Allstate, State Farm, Farmer, etc.  Because they are contracted as captive insurance agents, they are not able to discuss or recommend other insurance companies.  
I, 22 year old male, can pay ~$13,000 into a universal life policy throughout the next 20 years (~$650/yr, ~55/mo), never touch it again, and that will provide a death benefit of $100,000 until I’m at least 75 years old (I will put more money in of course since I plan on living past 75). That’s also a flexible premium policy with one of the most financially stable companies, so I would say that’s a good investment for my future children/grandchildren. Maybe not for myself, but at least my premiums won’t be more than $100/month when I’m old, assuming I still have excellent health and am insurable. With term I can get it insanely cheap now, but what about when I’m 50-60 and closing in on retirement? My premiums would hopefully be under $200/mo. at that point assuming I have excellent health or guaranteed insurability.

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Securities and investment advisory services offered solely through Ameritas Investment Corp. (AIC). Member FINRA/SIPC. AIC and The Business Benefits Group / IFG are not affiliated. Additional products and services may be available through The Business Benefits Group / IFG that are not offered through AIC. Securities products are limited to residents of Virginia. This is not an offer of securities in any jurisdiction, nor is it specifically directed to a resident of any jurisdiction. As with any security, request a prospectus from your Registered Representative. Read it carefully before you invest or send money. A Representative from The Business Benefits Group / IFG will contact you to provide requested information. Representatives of AIC do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your situation.
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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.
You seem to be suggesting that NO one at all ever needs life insurance past the age of like 55…..seems odd that you wouldn’t want a death benefit when you’re actually statistically more likely to die…..I am a bit confused by that…And if whole life isn’t a good investment then term life certainly isn’t unless you die during the term of course….Term insurance is like renting a home you pay and pay and pay and pay and you potentially never get a return. Except I could argue renting a home and being able to live there is more advantageous than renting insurance and what hoping you will die so your kids will get the money?
I’ve found from my experience, people either plan, save and invest or they don’t. Those that procrastinate and nitpick over which investment may be better than another are wasting valuable time and usually aren’t that successful. If someone starts saving and investing EARLY and accumulates a diversified retirement portfolio they will never look back and wish they had done differently.
Recently, viatical settlements have created problems for life insurance providers. A viatical settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy holder. The policy holder sells the policy (including the right to name the beneficiary) to a purchaser for a price discounted from the policy value. The seller has cash in hand, and the purchaser will realize a profit when the seller dies and the proceeds are delivered to the purchaser. In the meantime, the purchaser continues to pay the premiums. Although both parties have reached an agreeable settlement, insurers are troubled by this trend. Insurers calculate their rates with the assumption that a certain portion of policy holders will seek to redeem the cash value of their insurance policies before death. They also expect that a certain portion will stop paying premiums and forfeit their policies. However, viatical settlements ensure that such policies will with absolute certainty be paid out. Some purchasers, in order to take advantage of the potentially large profits, have even actively sought to collude with uninsured elderly and terminally ill patients, and created policies that would have not otherwise been purchased. These policies are guaranteed losses from the insurers' perspective.
I, 22 year old male, can pay ~$13,000 into a universal life policy throughout the next 20 years (~$650/yr, ~55/mo), never touch it again, and that will provide a death benefit of $100,000 until I’m at least 75 years old (I will put more money in of course since I plan on living past 75). That’s also a flexible premium policy with one of the most financially stable companies, so I would say that’s a good investment for my future children/grandchildren. Maybe not for myself, but at least my premiums won’t be more than $100/month when I’m old, assuming I still have excellent health and am insurable. With term I can get it insanely cheap now, but what about when I’m 50-60 and closing in on retirement? My premiums would hopefully be under $200/mo. at that point assuming I have excellent health or guaranteed insurability.
Term life insurance pays a specific lump sum to your loved ones for a specified period of time – usually from one to 20 years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value. They may also give you the option to port. That is, you can take the coverage with you if you leave your company.

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At the most basic level, initial ratemaking involves looking at the frequency and severity of insured perils and the expected average payout resulting from these perils. Thereafter an insurance company will collect historical loss data, bring the loss data to present value, and compare these prior losses to the premium collected in order to assess rate adequacy.[22] Loss ratios and expense loads are also used. Rating for different risk characteristics involves at the most basic level comparing the losses with "loss relativities"—a policy with twice as many losses would therefore be charged twice as much. More complex multivariate analyses are sometimes used when multiple characteristics are involved and a univariate analysis could produce confounded results. Other statistical methods may be used in assessing the probability of future losses.

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From a pure insurance standpoint, whole life is generally not a useful product. It is MUCH more expensive than term (often 10-12 times as expensive), and most people don’t need coverage for their entire life. The primary purpose of life insurance is to ensure that your children have the financial resources they need to get themselves to the point where they can provide for themselves, so coverage that lasts your entire life doesn’t make a lot of sense except for a minority of cases that are the subject of another discussion.
Insurance brokers represent the insurance buyer – you the consumer or business owner.  They are appointed or contracted with multiple insurance companies.  They have the flexibility to discuss many options and companies that meet your needs and budget. Insurance brokers have been around as long as insurance agents.  In many cases people will refer to insurance brokers as independent insurance agents.
So let’s do a quick comparison. Let’s take that $527 annual premium and invest it instead. From 1963 to 2013, the US stock market earned a 10.22% annual return (source), but let’s assume that this person also put some money into bonds (smart) and earned a more conservative 8% annual return. Over those 50 years, at that 8% return, that money would have grown to $327,231. I don’t know about you, but I would rather have my money that way than locked inside a whole life insurance policy.
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.
Still, although I believe that persons without adequate income either to fund adequately retirement vehicles or to pay monthly bills without using a home equity line of credit or leaving any credit card balances unpaid, should probably only purchase term insurance, if you earn more than that, I am thinking that purchasing 15% to 25% of needed life insurance coverage though whole life policies may be a way to mitigate against the needed guessing that goes into picking the length and amount of term policies. Do you agree?

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The questions we ask on our site are used only to determine which insurance companies and products best match your unique needs. Each insurance company bases its final prices on its own criteria. To more accurately match you with the best company, product and policy for your needs, we gather some general health, lifestyle, family history, and contact information on our site. A licensed representative will then review your submission and, if necessary, either call or email you to clarify any outstanding issues and provide you with the information you request.
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I bought a whole life policy in 1998 at the age of 50. It is has a face value of 150k with double iindemnity, living needs and disability waivers. This policy has been a lifesaver for me over the years, especially when I became disabled, I am so happy that the salesperson gave me what I said I wanted “a plan that would help me live as well as leave something for my children.” He gave me whole life
As far as buying term and investing the difference the company I bought from has produced far better risk adjusted returns when compared to my analysis over the last twenty years of buying term and investing the difference in the S&P. I don’t mean to say we should not invest but I view my permanent policy as a great place to take some risk off the table and also to have some long term safe dollars. I agree that unless you die early, this is not a good short term idea. Also the fact that is not considered an asset as you mention, gives it very favorable treatment. I asked myself, if I were a beneficiary would I want to inherit a portfolio worth 2.5 million a house worth a million or a 3.5 million tax free check. For me, it was the latter. For high net worth people I would argue it is better than a muni allocation. I don’t view the discussion as one or the other invest and buy term or just buy whole life but rather as a synergy of assets that can produce a great value. As you say, it’s all quite subjective. Is whole life your best “investment”? No, but I do think it is a fantastic tool.
Shoes are great but if the statement is “size six shoes are great” makes the question more difficult to answer. If you were born with size six feet then size six shoes could be excellent for you. If you’re a size 13 – then, maybe not so much. See? The answer is subject to your personal needs/requirements. Same is true with whole life insurance. Next time you’re pondering the subject ask yourself what should a grandfather do if he wants to insure his grandchild has something from him when his children are irresponsible and will most likely either outright steal the grandchild’s inheritance or just blow through it if they could? Or understand that the family has a history of illness and by purchasing the policy at an early stage the baby will be abler to get life permanent insurance. But to do what I ask requires real thought, not someone shooting from the hip.
1) I believe that when done correctly, it is insurance that CANNOT BE TAKEN AWAY. One of the most important things about whole life is that the annual premium is FIXED at a constant level FOREVER and the death benefit cannot be taken away if you continue paying in (these are the basics but I think worth repeating). I bought my policy at age 32. If I get heart disease, diabetes, or any of thousands of exclusionary conditions over the rest of my life, it does not matter. My insurance will not go away. If you rely on term insurance, then even if you get a 20 year policy as a 30 year old, then at age 50 there is a good chance you will either i) have to pay MUCH higher premiums to continue your coverage or ii) not be able to get coverage at all. It is just like health insurance before ACA. If you think you can keep rolling over term life, you are taking a very big gamble. This is probably fine if you are only insuring to protect your family in your early working years. But if you want to make sure your heirs eventually get a benefit on your death, term life is a bad gamble. Which leads into #2…
Although some aspects of the application process (such as underwriting and insurable interest provisions) make it difficult, life insurance policies have been used to facilitate exploitation and fraud. In the case of life insurance, there is a possible motive to purchase a life insurance policy, particularly if the face value is substantial, and then murder the insured. Usually, the larger the claim, and the more serious the incident, the larger and more intense the ensuing investigation, consisting of police and insurer investigators.[30]
Life insurance companies in the United States support the Medical Information Bureau (MIB),[17] which is a clearing house of information on persons who have applied for life insurance with participating companies in the last seven years. As part of the application, the insurer often requires the applicant's permission to obtain information from their physicians.[18]
The primary purpose of life insurance is to protect the people who are financially dependent upon you. Once those people are no longer dependent upon you (e.g. your kids grow up), you no longer have the need for that protection. Term life insurance is like having car insurance for as long as you own a car. Whole life insurance is like having car insurance forever, even when you no longer own a car. 

Thanks Paul. I 100% agree that it’s important to read the fine print and know the terms of your contract before signing on. Convertibility is an option that most quality term policies will have, but you should understand the specifics ahead of time. So I don’t think my statement was inaccurate, as much as you made the smart added comment to “read the fine print”. Thanks for the input!
Nick this was a terrific overview. You didn’t mention the whole life rip-off, i.e., that the Client is paying for 2 things but in the end only gets 1. If the insured dies the death benefit goes to the beneficiary, the cash goes back to the company. Conversely, if the Client takes the cask the contract is terminated and the death benefit is gone. Bad, bad, bad!

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.


Some insurance agents, such as independent agents, will compare policies from multiple vendors. However, this does not mean that the agent has access to all of the vendor’s policies. As insurance agents represent insurers, they may or may not have the experience and expertise required to advise you regarding the best policy for your particular situation. While independent insurance agents may be able to offer you more choices as they work with companies that are competing for your business, they generally only sell the insurance options that will provide them with the biggest profits. Keep this in mind when choosing between an insurance broker and insurance agent.
Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.
Using a broker can also simplify the process of picking insurance. There are so many different choices for insurance, with different limits and exclusions for each policy. It can be difficult to know which insurance and what level of coverage is right for you or your business. This is where an insurance broker can help. Using their experience in the field, a broker can analyze your risks and liabilities to determine exactly what coverage you need. With access to a variety of technology-based tools, brokers can make it simple to compare various options to determine which policies would best fit your needs. Using a broker eliminates the stress of learning about different types of insurance, and makes it easy to figure out what insurance will work for you.
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.
A broker will help his or her clients identify their individual, family, business or organization liability risks. With this information, a client can make an informed decision about what type of insurance is necessary and how much insurance protection to purchase. A broker can guide clients on these decisions, and provide a range of quotes based on the client’s needs. This includes explaining the terms and conditions and benefits and exclusions for a number of competing insurance policies. Armed with this information, clients can find the most appropriate insurance purchase for their liability needs and budget. Some brokers may even be able to negotiate lower rates for their clients based on their history as an insured and the amount of insurance that they are purchasing. For example, a broker working with a company to obtain workers’ compensation insurance can first assess the type and level of coverage needed (which may be determined in part by state law). The broker can then provide a range of options from a number of insurers, and help the business pick the policy that provides the most coverage at the best price. Over time, the broker can gather and present information to the insurer to demonstrate that the company should be eligible for a lower rate, perhaps because the business’ workplace safety initiatives have lowered the number of workers’ compensation claims made against the policy. In this manner, a broker can help a client reduce its premium cost.
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).
Term life insurance pays a specific lump sum to your loved ones for a specified period of time – usually from one to 20 years. If you stop paying premiums, the insurance stops. Term policies pay benefits if you die during the period covered by the policy, but they do not build cash value. They may also give you the option to port. That is, you can take the coverage with you if you leave your company.
Let’s consider th facts. Over the last 25 Years , SunLife participating WL Insurance has been consistent around 9.7% interest. That’s compounding annually. 25 year old male , Guaranteed minimum death benefit $150,000 . At age 65 the death benefit will likely be $650,000 , potentially $700,000 and if the market went way downhill and crashed $350,000. Guess how much he paid over the 20 year premium payment period (20pay WL) =$79,980 . That’s a contractually guaranteed – total cost for that $150,000 guarantees death benefit . It’s already much over 100% of his money back. With cash value , with loan ability (tax – free policy loan interest rates are on average in Canada right now 3.5%) . Ok? Making sense at all? Seeing any benefits to this concept anybody? So tell me , an investment of let’s just round up and say $80,000 that a 25 year old male will pay over 20 years. Guarantees him a minimum cash value of $68,900 contractually guarantees minimum. But , with the additional dividends he will actually have something like $129,000 . If he died two months into it the death benefit is $150K . When he turns 65 his investment grew on a tax sheltered basis from $80K to $390K , then if he does die they pay the $150K plus the cash value of $390K all tax free entirely to his family or his estate.
Property insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured more than 13,000 houses. The devastating effects of the fire converted the development of insurance "from a matter of convenience into one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new plan for London in 1667."[4] A number of attempted fire insurance schemes came to nothing, but in 1681, economist Nicholas Barbon and eleven associates established the first fire insurance company, the "Insurance Office for Houses," at the back of the Royal Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by his Insurance Office.[5]

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. 

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