Universal Life Insurance Guarantees Death Benefit For Policy Life

Universal Life Insurance Guarantees Death Benefit For Policy Life

When it comes to universal life (UL) insurance, one of the biggest concerns is that the death benefit is not guaranteed for the life of the policy. Most policies will terminate or mature at age 95 or 100 and cash out at that time. When this happens, it leaves the client with the cash value, which is often less than the death benefit.

How Is a Mortality Charge Determined and What Is It?

Your Mortality Rate Determines Your Premium Amount for Life Insurance

A mortality charge is the cost of pure life insurance, which is based on experience tables developed by actuaries and on actual mortality experiences. Each life insurance company has their own mortality charges based off information from these tables. The difference in mortality charges among life insurance companies can have a greater impact on a policy’s performance than any interest return or dividend.

The Importance of Life Insurance Policy Illustrations

life insurance policy illustration

When dealing with permanent cash-value life insurance, sales are usually based on illustrations and product analysis. These illustrations are used to highlight project interest rates and future values, which are then shown to potential clients. But before any decisions, it is important to understand all the elements and components of these policy illustrations.

Different Types of Life Insurance

Different Types of Life Insurance

Unlike rider policies, these types of life insurance policies can be purchased separately; with each of them having their own specific purpose. There are typically considered as a less common, more dangerous option for life insurance.

How to Find Misleading Information In a Life Insurance Policy

how to find misleading information in a life insurance policy

The National Association of Insurance Commissioners adopted the model regulation, which is a new regulation aimed at protecting consumer and fostering consumer education. Under this regulation, new standardized procedures for policy illustrations were created to help ensure that all illustrations are not providing misleading information.

The Life-Cycle Model of Consumption and Savings

life cycle mathematical insurance model

A new approach to calculating life insurance needs is the life-cycle model of consumption and savings, which is based on the life-cycle model. Professor Franco Modigliani and his colleagues at Massachusetts Institute of Technology developed this model in the 1950s and 1960s. Modigliani won the Noble Peace Price in 1985 for the development of this […]

Ways To Calculate Your Life Insurance Needs

Clean insurance policy

Capital preservation and capital liquidation is a method of calculating life insurance needs, which can be used independently or in conjunction with the need analysis. When used separately, it can serve as a quick calculation, if you want to just do an income replacement approach. Either way, once the amount of income replacement is determine, a decision must be made as to whether the pool of capital should be preserved or liquidated.

The Apportionment Rules: Who Pays the Estate Tax on Life Insurance Proceeds?

The Apportionment Rules: Who Pays the Estate Tax on Life Insurance Proceeds?

This is an extremely important issue that is often overlooked or that falls between the cracks of an otherwise good estate plan. As a general rule, to collect the federal estate tax, the IRS can follow life insurance proceeds as far as it can trace them. Any person who receives includable property is personally liable […]

Are There Options of Policy Dividends in Life Insurance Products?

Are There Options of Policy Dividends in Life Insurance Products?

Commonly associated with permanent policies; dividends are declared when an insurance company receives the premium payment from a policy owner, invests the money, and then returns a portion of the money back to the policyholder. After a policy is purchased, policy owners are given the opportunity to decide how dividends will be rewarded, which can be done through a series of options.

How to Understand a Life Insurance Illustration

understanding term life insurance illustration

Reading a term life insurance illustration or spreadsheet is not as complicated, as it may seem. By breaking down all of the possible elements of this illustration, you will get a better understand on how to evaluate and compare term life insurance illustrations.