Understanding the "Cost of Insurance" (COI) in Permanent Policies The "Cost of Insurance" (COI) is the internal charge levied by the insurer each month to cover the actual risk of insuring the policyholder. While this…
Premium Payment Flexibility in Universal Life: The Mechanics of Variable Payments Unlike the fixed structure of Whole Life, Universal Life (UL) offers policyholders the flexibility to vary the size and timing of premium payments. This…
Transferring Whole Life Policy Ownership to a Trust: The ILIT Strategy For high-net-worth individuals, using an Irrevocable Life Insurance Trust (ILIT) is a foundational strategy for advanced estate planning. The goal is to move the…
Life Settlement vs. Viatical Settlement: Liquidating Your Permanent Life Policy For policyholders who no longer need or can afford their Permanent Life Insurance, selling the policy is an option. This process involves two distinct types…
The Actuarial Basis: How Age and Health Determine Whole Life Premiums The fixed, level premium for Whole Life insurance is not arbitrary. It is mathematically calculated by actuaries based on the principles of risk management,…
How Dividends Affect the Cost of Permanent Life Insurance Over Time For participating Whole Life policies, dividends play a crucial role in lowering the long-term, out-of-pocket cost of insurance. While the premium is fixed, the…
Guaranteed Issue Life Insurance: The Option of Last Resort for Permanent Coverage Guaranteed Issue (GI) Life Insurance is a type of permanent life insurance (often a form of Whole Life) that accepts nearly all applicants…
Comparing Surrender vs. Policy Loan: Which is Better for Accessing Cash? When a Permanent Life policyholder needs liquidity, the decision often comes down to two choices: surrender the policy or take a policy loan. These…
Private Financing: Using Whole Life Cash Value for Personal Banking A sophisticated strategy used by financially savvy individuals is leveraging a fully funded Whole Life policy to act as a source of private financing, sometimes…
Understanding the Policy Illustration: Reading Your Whole Life Projections Before purchasing a Permanent Life policy, an insurance company is required to provide a **Policy Illustration**. This document outlines the expected performance of the policy and…