Posts by Scott W Johnson

Scott W Johnson lives in Marin County with his family where he can often be found on his mountain bike. Johnson believes in assisting clients to find affordable simple life insurance plans that fit their families needs. Mr Johnson is the owner of WholeVsTermLifeInsurance.com

Whole Life Insurance Vs Other Tax Advantaged Investments

Written by Scott W Johnson

There are numerous places to consider investing your money – Are any of them better than ‘investing’ in whole life insurance? Whole life is often referenced as being a great tax free investment, and it can be. But there are dozens of other methods to invest in tax differed, tax free, and otherwise tax advantaged methods. Consider our list before buying.

Clark Howard Term Life Insurance

Written by Scott W Johnson

Clark Howard is a Radio, Television, and Podcast Star. He is opinionated about all things consumer concerned and has a significant following online and in the personal financial world. Clark is vocal about life insurance. And we at Whole Vs Term – have appreciated and usually agreed with him and his approach to life insurance… More

When Does BTITR Not Work?

Written by Scott W Johnson

When does Buy Term and Invest the Rest not work? Technically it is not always the best choice for consumers and we highlight some candidates and some instances when whole life might just be your only or best choice.

Why Life Insurance Might be Taxable

Written by Scott W Johnson

Life Insurance in the United States is absolutely taxable – regardless of whatever everyone else says. However in general – proceeds from a life insurance death benefit, are often considered to be Federally Income Tax Free. That income free tax status though, does not pertain to numerous other types and kinds of taxes. Even the.. More

Goodman Triangle

Written by Scott W Johnson

The Goodman Triangle is a potential tax trap created when too many parties are involved on a life insurance contract. The original case from 1946 is considered a required reading for estate attorneys and seasoned insurance agents. The Goodman case can quickly prove that the old maxim (that life insurance is tax free) to be wrong.

What is the Face Amount of Life Insurance

Written by Scott W Johnson

The Face amount of life insurance is exceptionally similar to the death benefit, but technically not the exact same. For our purposes the differences are almost irrelevant as long as consumer under how death benefits can be amended or changed.

How are Policyowner Dividends Treated in Regards to Income Tax?

Written by Scott W Johnson

Are policyowners / policyholders participating whole life insurance dividends really tax free? As with numerous simple questions no one simple answer is there. Policy owners generally may not have to pay income taxes but there are several cavets and reasons why someone might have to pay an income or another type of tax.

American Heritage Life Insurance Company

Written by Scott W Johnson

The American Heritage Life Insurance Company is an A+ rated insurer that is part of the Allstate Group of Companies offering a wide variety of products. Their AM Best A+ and Policyholder Surplus XV make them a strong candidate for consumers that are already using Allstate for Home and Auto Insurance. But should you buy your term insurance policy through them?

Direct Recognition

Written by Scott W Johnson

Direct, Not Direct Recognition which is better and which is the preferred method for whole life insurance buyers. Direct Recognition is a form of accounting used by Participating Whole Life Insurers to account for policy loans outstanding when calculating dividends. Our definition is both useful and illustrative of the various considerations that consumers need to think about when shopping for a participating insurer.

Death Benefit

Written by Scott W Johnson

The death benefit is a simple and easy concept to understand if you are shopping for life insurance. Commonly referred to as the DB or Benefit, it is the contractual obligation for the insurer to pay out if the insured dies.