Blog

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.

Life Insurance for Attorneys

Written by Scott W Johnson

Are you an attorney shopping for life insurance? Confused by the multitude of options? Lawyers have different needs than most people as they often have a higher income and are also more debt from educational expenses such as law school. (These degrees do not come cheaply.) And as such shopping for term insurance for attorneys is not simple.

Fitbit Life Insurance

Written by Scott W Johnson

Fitbit Inc is a San Francisco company, whose corporation is based in Delaware. This fast moving company creates intriguing wearables that measure much of your lifestyle and health information. It can calculate calories burned, steps taken, miles walked, and so much more. Now – Certain Life Insurers are offering points and discounts for those that use the product and regularly meet certain conditions and you may be able to save 15% on your life insurance.

Policyholder Surplus

Written by Scott W Johnson

The policyholder surplus is a very important financial metric and assessment tool that too few consumers truly understand. PHS metrics show a slight bias to larger insurers by its own definition. Policy Holder metrics are extremely important for those wanting to purchase or consider purchasing longer term permanent policies and annuity contracts such as Whole, Universal, or various Annuities,

Principal Life Insurance Company

Written by Scott W Johnson

The Principal Life Insurance Company is an Iowa based AM Best A+ Rated Insurance conglomerate. This insurer has a terrific set of Universal and Term Life Insurance policies. Their rider or endorsement selection is very solid.