Category Archives: Whole Life Insurance

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Buy term invest the difference

Posted on: January 16th, 2020 by Glenn

Be careful -read this before you buy life insurance as a result of this sales strategy. Buy term invest the difference is a strategy for people who have whole life insurance with cash surrender values. The basics behind the strategy is that you cancel the whole life insurance, take the resulting cash surrender value and invest it, then purchase a term life insurance. The idea while possibly valid, has some criticisms that are always overlooked with this is pitched. Interest rates shown on the investments are often optimistic to aggressive. Then those investments are compared to a cash value of …Read More

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Term life insurance vs Whole Life Cash Value

Posted on: January 16th, 2020 by Glenn

Stop – before you compare term vs whole life, you need to consider a more basic problem. Before we get the the nuts and bolts, I want to realign your thinking. Comparing these two types of insurance from the perspective of ‘which one should I purchase?’ is misleading. They are two different solutions to two different problems. Term life insurance has premiums that are level for a time period (called the ‘term’), after which point the policy is not really feasible. It’s best suited for people who need life insurance for a timeframe – while the kids are at home, …Read More

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Life insurance dividends

Posted on: January 13th, 2020 by Glenn

Life insurance dividends are a part of a class of life insurance polices known as ‘participating’. They’re participating because dividends are how you participate in the investment performance of the company. These polices are almost always whole life, so for practical purposes dividends are seen on participating whole life policies. What are dividends? The life insurance company takes your policy and the rest of the block and makes assumptions on investment returns, admin costs, and mortality. At the end of the year they compare their actual performance with expected, and if things are positive they issue a dividend – a …Read More

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Term to 100 (Canada)

Posted on: January 13th, 2020 by Glenn

Term to 100 insurance is an arguable hybrid of term life insurance and whole life. Whole life insurance (or permanent) is generally characterized by two attributes – coverage for life, and cash surrender values should cancel the policy. Term life insurance has coverage for a specific duration (less than life) and no cash surrender values. Term to 100 is a bit of column A, bit of column B. Like whole life, the premiums and the coverage is level for life. Like term life insurance though, there are no cash surrender values. Term 100 is basic – level premiums for life, …Read More