Like any other financial investment, there are risks associated with a premium-financing arrangement. One risk alone – or in combination with another – could cause the entire program to fail. This is why it is advised to be aware of them before making a decision.Read More
Basically, what you are looking for is whether or not the company is using numbers and factors that are realistic, while also considering the company’s history. Use these questions when you are dealing with interest rates, dividends, and non-guaranteed factors.Read More
Declared Interest Rate – for any traditional, non-variable policies – is the amount that the investment committee of a life insurance company determines how much can be credited towards in-force life insurance policies, which the policy owner must accept. Interest is usually credited on the accumulated value after policy expenses (mortality/risk charges and overhead expenses) have been deducted, so the actual return is less than the credited rate. Life insurance companies generally adopt one of…Read More
When determining the performance of a life insurance policy, there are four components, which are directly related to the actual premium you pay, to take into consideration. The premium you pay on your life insurance policy may fluctuate from year-to-year if any of these components change; they are mortality, administrative expense, interest rates and persistency.Read More
If you’re seeking term life insurance and you would like to get some of the money you paid into the policy back, you might want to consider return of premium life insurance.
Term policies require the policyholder to pay regular premiums to keep the policy in force for a designated amount of time, usually 15, 20 or 30 years. If the policyholder dies during the term, their beneficiaries receive the death benefit. Although term insurance is the most straightforward of all insurance plans, if the policyholder doesn’t die and the policy expires, the policyholder would have to renew the policy for another set number of years to be covered, usually at a much higher rate.Read More