Disadvantages of Having Disability Income Insurance

Disadvantages of Having Disability Income Insurance

If an individual does not have the benefit of an employer paying the cost of disability income coverage, the cost or premium needed to buy the coverage could be substantial. This usually will be the case with self-employed persons. Typically, the older individuals become, the less likely they are to be inclined to purchase disability […]

Advantages of Having Disability Income Insurance

Advantages of Having Disability Income Insurance

The most obvious advantage of disability income insurance is that the policy will provide a benefit payment equal to a certain percentage of the disabled individual’s income for the duration of the disability or the length of the policy’s benefit period. This benefit payment will make it easier for the disabled individual to continue to […]

Who Should Buy Long-Term Income Disability Insurance?

Who Should Buy Long-Term Income Disability Insurance?

Virtually all workers, whether self-employed or employed by another person or company, need access to financial resources in the event they become disabled and are unable to work for any substantial period of time. For most workers, providing for this need is one of the most critical, if not THE most critical, financial planning issue(s). […]

Introduction to Disability Income Insurance

Introduction to Disability Income Insurance

Most working Americans’ greatest assets are not their homes, nor their pensions, nor even their health and fitness, it is their human capital; their ability to work and produce an income over their lifetimes. When family breadwinners die (prematurely), their families are left to fend for themselves without the breadwinners’ financial support, unless of course, […]

What Current Assumption Whole Life (CAWL) Insurance Proposals and Ledgers Do Not Reveal

What Current Assumption Whole Life (CAWL) Insurance Proposals and Ledgers do Not Reveal

It is important to know what Current Assumption Whole Life (CAWL) Insurance proposals and ledgers do not reveal. Insurance companies or their agents should tell purchasers of life insurance, either verbally or in writing, the following additional information: The investment strategy employed by the life insurance company, (e.g., pure portfolio rate, modified portfolio rate, weighted […]

Facts to Know about the Net Investment Yield with Current Assumption Whole Life (CAWL) Insurance

Facts to Know about the Net Investment Yield with Current Assumption Whole Life (CAWL) Insurance

Over the long run, insurance companies cannot credit more interest to policy cash values than they earn on their general investment portfolios. To assess a company’s long run interest crediting ability, one should evaluate the insurer’s current portfolio and its investment philosophy. As a general rule, insurance companies invest their portfolios predominantly in long-term corporate […]

Mortality Charges within Current Assumption Whole Life (CAWL) Insurance

Mortality Charges within Current Assumption Whole Life (CAWL) Insurance

A CAWL contract explicitly states the maximum mortality rates it will charge for all ages and guarantees that mortality rates will not exceed those maximums. Many companies now use the 2001 Commissioner’s Standard Mortality (CSO) table as the basis for their contractually guaranteed maximum rates on newly issued policies, but some companies still use the […]

Expense Charges within Current Assumption Whole Life (CAWL) Insurance

Expense Charges within Current Assumption Whole Life (CAWL) Insurance

Principally two elements comprise the expense charge: (1) a fixed annual fee, plus (2) a percentage of premiums paid. The company may or may not reveal these fees in its original policy illustration. However, even if it does, the company usually does not guarantee that the expense charges will not change. Actual expense charges may […]