The Cash Value Transfer: Understanding Life Insurance Policy Riders (LPRs) Life Insurance Policy Riders (LPRs) are an innovative tool used in some estate planning strategies, allowing the policyholder to gift the cash value of a…
The Term-to-Permanent Conversion: A Guide to Calculating the New Premium While the guaranteed convertibility of term life insurance is a major benefit, understanding how the new permanent policy premium is calculated is essential for financial…
Whole Life's Estate Equalization Strategy: Fair Distribution of Illiquid Assets In estate planning, **Estate Equalization** is a key strategy where Permanent Life Insurance is used to ensure that all heirs receive an equal share of…
Adjusting the Death Benefit in IUL: Managing the Guideline Premium Test Indexed Universal Life (IUL) policies are highly flexible, but adjusting the death benefit requires adherence to complex IRS rules designed to maintain the policy's…
Comparing Whole Life Dividends and S&P 500 Index Returns: A Historical Look Investors often compare the returns of a Whole Life policy (primarily derived from non-guaranteed dividends) against the volatile but high-potential returns of the…
The Policy Loan Interest Rate: Fixed vs. Variable Rates on Whole Life Loans When taking a policy loan against the cash value of a Whole Life policy, the policyholder must understand the interest rate mechanism,…
Gifting Life Insurance: Using Permanent Policies for Annual Gift Tax Exclusion Permanent Life Insurance policies can be an effective vehicle for wealth transfer by utilizing the annual federal gift tax exclusion. This strategy is essential…
The Term-to-Permanent Conversion Strategy: A Laddered Approach to Coverage For individuals who anticipate needing permanent coverage but cannot afford the full premium immediately, the **Laddered Conversion Strategy** offers a flexible, step-by-step approach. This involves converting…
How Universal Life Policy Performance is Affected by Low Interest Rates Traditional Universal Life (UL) policies credit interest to the cash value based on the insurer’s general portfolio earnings, which are highly sensitive to market…
Premium Paying Periods: 10-Pay, 20-Pay, and Life Pay Whole Life Options Whole Life insurance offers flexibility not only in its features but also in its premium payment schedule. Policyholders can choose to pay premiums over…